New York City’s Largest Pension To Exit Hedge Funds

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The New York City Employees Retirement System (NYCERS) voted on Thursday to liquidate its hedge fund portfolio, according to a trustee.

The pension fund currently has 3 percent of its total assets allocated toward hedge funds.

More from Reuters:

The board of New York City’s largest public pension fund voted on Thursday to stop future investments in hedge funds and unwind all current investments in the asset calls, according to the city’s public advocate, a trustee at the pension fund.

The board of the New York City Employees Retirement System (NYCERS) voted to stop all future investments in hedge funds and “liquidate NYCERS hedge fund investments as soon as practicable in an orderly and prudent manor.”

A report broke yesterday that the trustees were considering exiting hedge funds. Bloomberg reported:

“Hedge funds are charging exorbitant fees for high-risk and opaque investments” said New York City Public Advocate Tish James. ”Our public employees work hard for their money, and they deserve to know their investments are secure. We can and must invest responsibly and also honor our fiduciary responsibility.”

[…]

Last year, NYCERS hedge fund portfolio lost 1.88 percent, lagging both the Standard & Poor’s 500 the Barclays U.S. Aggregate Bond Index. Three-year returns were 2.83 percent.

Eric Sumberg, a spokesman for New York City Comptroller Scott Stringer, didn’t immediately respond to a request for comment.

CalPERS made a similar move last year.

 

Photo by Thomas Hawk via Flickr CC License

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