US - The US$153.9bn New York State Common Retirement Fund has realised a positive return of 2.56% for the last fiscal year, following losses announced by other major US pension funds.
Reflecting performance of the broader marketplace, the fund's domestic equity (-6.44%) investments had negative returns for the year. Domestic equity investments comprise more than 37% of the fund's total portfolio.
New York State Comptroller Thomas P. DiNapoli commented: "We have some new, forward-looking investment strategies that will help keep us strong in the coming years.
"But our growth is limited by constraints on how we can respond to market forces. It's time to revisit the basket bill and give the fund more investment flexibility."
Under New York's legal list system, investments in assets classified as alternative, such as private equity, real estate and absolute return strategies, are limited to 25% of the total portfolio.
According to Wilshire Associates' Trust Universe Comparison Service (TUCS), a peer comparison for institutional asset performance, the median return for US public pension funds during New York's fiscal year was 0.5%.
DiNapoli said he would launch a strategic asset allocation review in 2009 to re-examine the long term investment policy for the portfolio.
He has also directed his staff to re-evaluate the fund's relationships with consultants, advisers, brokers and other contracted professionals through a series of competitive requests for proposals.
The vast majority of JLT Employee Benefits' clients have moved to the new equalised basis since the consultancy enabled pension schemes to calculate transfer values to allow for guaranteed minimum pension (GMP) equalisation.
Investors, driven by depressed interest rates, slower global economic growth and rich equity market valuations are examining non-traditional investment opportunities.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
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