New York City pension fund managers raked in $1.7 BILLION in fees last year - growing at a faster rate than the pension assets

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  • New York City's 5 pension costs had a mixed full worth of $253.3B
  • The 321 pension money managers made astir $1.7B successful fiscal twelvemonth 2023
  • That is an summation of astir 10 percent connected nan twelvemonth earlier - aliases astir $150M 

By Neirin Gray Desai Consumer Reporter For Dailymail.Com

Updated: 15:46 EDT, 31 October 2023

Wall Street money managers charged pinch investing New York City's pension costs made astir $1.7 cardinal successful fees past year.

A full of 321 pension money managers oversaw nan status funds, which are paid into by nan city's constabulary officers, occurrence fighters, teachers, schoolhouse territory workers and different metropolis employees.

As of June 30, nan extremity of nan fiscal year, nan mixed worth of the 5 costs was astir $253 billion, according to figures cited by Bloomberg from an annual report revenge by nan NYC Comptroller's Office.

The managers averaged a return of astir 8 percent connected those funds. Their fees, however, accrued by almost 10 percent - aliases $150 cardinal - complete nan fiscal year. 

The pensions' summation was besides almost 4 percent little than a benchmark of 11.9 percent group by nan metropolis and based connected a public markets scale return.

Wall Street money managers charged pinch investing New York City's pension costs made $1.7billion successful fees past year

New York City firefighters' pension money grew by astir 8.1 percent complete fiscal twelvemonth 2023. Pictured are FDNY officers entering a hotel residence successful March

The city's 5 funds' full assets are still $40.2 cardinal short of what is needed to screen nan benefits promised to its labor travel their retirement.

New York City Comptroller Brad Lander praised nan capacity of nan various pension costs successful August.  

'Our nationalist assemblage workers and retirees tin remainder assured that we are well-positioned to proceed delivering beardown returns for nan agelong term,' he said.

The NYC Comptroller's Office, done its Bureau of Asset Management, serves arsenic nan finance advisor to nan 5 funds.

They see nan New York City Employees' Retirement System (NYCERS), Teachers' Retirement System (TRS), Police Pension Fund (Police), Fire Pension Fund (Fire) and nan Board of Education Retirement System (BERS).

The 5 costs service astir 800,000 members and beneficiaries and are governed independently.

The NYC Pension Fund (NYCPPF) grew astir 7.8 percent complete FY 2023, according to the Comptroller's Office 2023 Annual Comprehensive Financial Report. Pictured are officers extracurricular nan city's  41st precinct successful 2020

As of June 30, 2023, nan managers that charged nan $1.7billion successful fees included: '24 home equity managers, 35 world equity managers, 4 world managers, 19 hedge money managers, 21 fixed income managers, 1 Economically Targeted Investment (ETI) manager, 36 replacement in installments managers, 116 backstage equity managers, 51 backstage existent property managers, and 14 infrastructure managers.'

Bloomberg noted that according to nan report, nan city's 5 costs relied much connected money managers that rumor backstage loans to companies aliases bargain indebtedness successful 2023 than successful 2022.

Private in installments precocious has offered higher returns than bonds and tin beryllium little volatile than nationalist markets.

Editor by Wiratmoko
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