Changes in APERS Investment Management
Carlos Borromeo, the deputy director of investments and finance at Arkansas Public Employees Retirement System (APERS), has attributed the under-performance of Lazard Asset Management to several key factors. In a report to the board of trustees, Borromeo cited “very poor stock picking,” particularly in the tech and healthcare sectors, as one of the primary reasons.
The report details four main culprits that led to the under-performance. These factors, combined with other issues, have prompted the decision to switch investment managers. This move is part of APERS’ ongoing efforts to optimize its investment strategy and ensure better returns for its members.
APERS manages a sizeable portfolio, valued at approximately .43 billion, which is distributed across domestic and international stocks, bonds, and other investment vehicles. The system’s investment return, while still strong at 7.34% annually over the past 20 years, has recently shown signs of slowing down compared to its 7.15% target.
In addition to these investment matters, APERS is also considering the acquisition of new office space. Two potential locations, one neighboring the state Capitol and the other being the Cadence Bank building, are being evaluated based on capital outlay costs and long-term benefits to the system.
APERS aims to provide secure retirement benefits to its over 75,000 members and its decision-making processes reflect a commitment to evaluating and adapting its strategies to ensure the best possible returns.
