New York City Comptroller William C. Thompson Jr., on behalf of the Trustees of the New York City Pension Funds, today announced the first step in the creation of a $2 billion commitment to Emerging and Developing Investment Managers.

The Comptroller has released a Request for Proposal to identify Emerging Managers-of-Managers to invest $800 million in publicly traded securities. The program, which will be implemented by the end of this year, will be one of the largest and most extensive programs involving Emerging Managers in the country.

“This initiative is unprecedented in New York City and will establish the City as a market leader in this area,” Thompson said. “I want to commend and credit the trustees of the New York City Pension Funds for their diligence, and for delivering a statement to the country about the importance of pursuing an Emerging Managers program.”

Thompson added: “We must explore every opportunity to enhance our portfolio. This program will allow us to expand our strategy and take advantage of the diversification, performance and expertise that smaller, newly developed asset management firms offer. This strategy will be a win-win for both managers and investors.”

New York City Public Advocate Betsy Gotbaum said: “ I am proud that the New York City Pension Funds are leading the way in progressive investment practices.  With this $800 million invested in the Emerging Managers Program, the Funds are demonstrating that they are committed to working with firms that reflect the diversity of their membership. The purpose of investing with new and female- and minority-owned firms isn’t just to promote diversity.  It is also to ensure that Funds members get the best possible return on their money.  The Emerging Managers Program will do that by strengthening our portfolio and tapping into the expertise of outstanding young firms.  It will serve as a model for forward-thinking cities around the nation.”

Emerging Managers are small investment firms, many of which are first-time managers and women and minority-owned firms with assets of less than $1 billion. The Emerging Managers-of-Managers structure provides larger investors access to a diversified portfolio of these smaller firms.

New York City Finance Commissioner Martha E. Stark stated: “In order to ensure the best returns for pension beneficiaries, it is important to diversify not only our assets but the managers whom we rely on to improve fund performance. This program ensures that we will have a diverse group of investment managers -- small and large, well-established and emerging, and firms run by women and minorities that are often on the cutting edge of asset management.”

The five New York City Pension Funds are the: New York City Employees’ Retirement System (NYCERS); New York City Teachers’ Retirement System (TRS); New York City Fire Department Pension Fund; New York City Police Pension Fund; and, the New York City Board of Education Retirement System (BERS).

The Funds’ trustees will select a number of firms with outstanding performance to increase and enhance the return on investments for the Funds. 

The remaining $1.2 billion of the Program will be targeted directly to Developing Investment Managers. Developing Investment Managers are firms that manage $1 to $5 billion in assets. The Comptroller expects to release a Request for Proposal for Developing Investment Managers early next year.

The trustees for the five Pension Funds are:

New York City Fire Department Pension Fund: Mayor Michael Bloomberg; New York City Fire Commissioner Nicholas Scoppetta (Chair); New York City Finance Commissioner Martha E. Stark; Stephen Cassidy, President, James Slevin, Vice President, Robert Straub, Treasurer, and John Kelly, Brooklyn Representative and Chair, Uniformed Firefighters Association of Greater New York; Peter Gorman, President and Captains’ Rep., Nicholas J. Visconti, Chiefs’ Rep., and Stephen J. Carbone, Lieutenants’ Rep., Uniformed Fire Officers Association; and, Joseph Gagliardi, Marine Engineers Association.

New York City Police Pension Fund: Mayor Michael Bloomberg; New York City Finance Commissioner Martha E. Stark; New York City Police Commissioner Raymond Kelly (Chair); Patrick Lynch, Patrolmen’s Benevolent Association; Michael Palladino, Detectives Endowment Association; Edwin Mullins, Sergeants Benevolent Association; Anthony Garvey, Lieutenants Benevolent Association; and, John Driscoll, Captains Endowment Association.

New York City Employees’ Retirement System: New York City Finance Commissioner Martha E. Stark (Chair); New York City Public Advocate Betsy Gotbaum; Borough Presidents C. Virginia Fields (Manhattan), Helen Marshall (Queens), Marty Markowitz (Brooklyn), Adolfo Carrion (Bronx), and James Molinaro (Staten Island); Lillian Roberts, Executive Director, District Council 37, AFSCME; Roger Toussaint, President Transport Workers Union Local 100; and, Carroll (Carl) Haynes, President, International Brotherhood of Teamsters, Local 237.

New York City Teachers’ Retirement System: New York City Finance Commissioner Martha E. Stark (Chair); Deputy Chancellor Kathleen Grimm, New York City Department of Education; and, Sandra March, Melvyn Aaronson and Mona Romain, all of the United Federation of Teachers.

New York City Board of Education Retirement System: Mayoral appointees Schools Chancellor Joel Klein, Alan Aviles, Phillip Berry, David Chang, Tino Hernandez, Augusta Souza Kappner, Richard Menschel and Marita Regan; Borough President appointees Jesse Mojica (Bronx), Martine G. Guerrier (Brooklyn), Michael Flowers (Queens), and Joan Correale (Staten Island); and employee members Thomas J. Malanga of the International Union of Operating Engineers, Local 891, and  Milagros Rodriguez of District Council 37, Local 372.

###