The trustees for the Arkansas Teacher Retirement System on Wednesday authorized up to $200 million in new investments in funds focused on asset-backed securities.
The trustees approved a plan to commit up to $100 million in the Los Angeles-based TCW Group's TALF Opportunities Fund.
TALF refers to investments in securitized products made from loans associated with the Federal Reserve Bank's Term Asset-Backed Securities Loan Facility, according to a report to the system's trustees. The system report said the loans are fully secured by collateralized instruments and similar to a 2009 program that produced successful results for investors.
The trustees also approved a proposal to commit up to $100 million in New York-based Alliance Bernstein's TALF Opportunity Delaware Fund.
The system's investments were valued at $17.5 billion at the end of fiscal 2019 on June 30, the system's investment consultant reported last fall. They had dropped to roughly about $15.6 billion, system Executive Director Clint Rhoden said last week. Investments have declined in value during the economic turmoil caused by the pandemic.
Metro on 05/21/2020