ASRS Statement on Silicon Valley Bank/Signature Bank Issues

The Arizona State Retirement System is providing the following information with regard to the receivership of Silicon Valley Bank and Signature Bank as they relate to the ASRS investment portfolio.

The ASRS had relatively small index-like investments in shares of SVB Financial Group (the parent company of Silicon Valley Bank) and Signature Bank.

Specifically, the value of the ASRS investments as of close of business December 30, 2022 were $3.8 million in SVB Financial Group and $2.1 million in Signature Bank. The sum of these two amounts - $5.9 million – is approximately 0.012% of the approximately $49 billion ASRS portfolio, and has been more than offset from much larger investment gains throughout the rest of the portfolio.

As a result, even after paying all the pension, health and long term disability benefits, the ASRS portfolio is approximately $500 million larger than it was at the beginning of the current fiscal year, July 1, 2022.

In addition, the ASRS maintains significant liquidity in different forms and at different levels within the investment portfolio and has not needed to adjust any strategies or investments for any liquidity*-*related needs.

ASRS staff will continue to monitor and react to various aspects of the financial markets on an ongoing basis.

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