US - Three of the five New York City pension funds are looking for one or more managers to run up to $1.5bn in active US large cap value equities.
The New York City comptroller's office, on behalf of the NYC Board of Education Retirement System, the NYC Fire Department Pension Fund, and the NYC Police Pension Fund, is searching for fund managers to create and actively manage US large cap value equity portfolios for each of the three funds. The comptroller's office claims that all active large cap value management styles will be considered, including enhanced indexing.
Selected managers will be given at least $100m for each account, and any awarded contract will be managed as a separate account for each of the three pension funds. Additionally, the size of the mandates will be limited to 20% of the selected manager’s total assets under management. The deadline for submissions of interest is October 25.
The criteria for interested mangers includes: evidence of experience and ability to manage portfolios benchmarked to the Russell 1000 Value Index or S&P 500 / Barra Value Index; as of September 30, 2001 prospective managers must have at least $500m under management in active US large cap value; a five-year AIMR-compliant return composite for the proposed active US large cap value mandate, with a market value of at least $250m; and at least one non-affiliated institutional client with assets of $100m or more in the proposed asset class.
The City's five pension funds are the $41.9bn NYC Employees' Retirement System; the $35.4bn Teachers' Retirement System; the $17.3bn NYC Police Pension Fund; the $6.6bn NYC Fire Department Pension Fund; and the $1.74bn NYC Board of Education Retirement System. Each pension fund is financially independent and has its own board of trustees.
The New York City Comptroller is a member of the board of trustees of four of the five City pension funds, and also serves as investment advisor to and custodian of the five funds. As the investment advisor to the funds, the Comptroller has the responsibility of investing and protecting the funds for approximately 233,000 retirees and beneficiaries and about 332,000 City employees.
By Geoffrey Ho
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