New York City Employees’ Retirement System Investor Profile

The New York City Employees’ Retirement System (NYCERS) is a defined benefit pension plan that provides retirement, disability, and death benefits to employees of New York City and its agencies. With approximately $75.6 billion in assets under management as of June 30, 2023, NYCERS serves as one of the largest public pension funds in the United States, managing a diversified investment portfolio to ensure long-term funding for its pension obligations. Founded in 1920, it has been operational since the early 20th century and focuses on supporting over 250,000 active and retired members through responsible investment practices.

Investment Strategy

NYCERS manages a diversified investment portfolio to ensure long-term funding for pension obligations, incorporating environmental, social, and governance (ESG) factors into its strategy. The system invests across various asset classes, including equities, fixed income, real estate, private equity, and hedge funds. It regularly reviews and adjusts its asset allocation to respond to market conditions and economic trends, emphasizing risk management to protect member benefits. As a pension fund, NYCERS allocates to alternative investments such as private equity and real assets to achieve higher returns, while collaborating with external managers for diversification and long-term growth. This approach underscores its commitment to responsible investing and maintaining a balanced portfolio.

Private Markets Approach

NYCERS has a history of allocating to alternative investments, including private equity and real assets, as part of its strategy for higher returns. It collaborates with external managers for private market investments, aiming for diversification and long-term growth. Notable investments include commitments to Blackstone’s real estate funds and investments in Apollo Global Management’s private equity funds. While specific allocations to private equity or venture capital are not detailed, the system’s approach involves these types of fund commitments to enhance its overall portfolio. Co-investments are not explicitly mentioned, but the focus on external partnerships suggests a structured method for engaging in private markets.

How Fund Managers Should Approach

Fund managers seeking allocations from NYCERS should highlight how their strategies align with the system’s emphasis on diversification, long-term growth, and risk management. Given NYCERS’ collaboration with external managers for private market investments, proposals should demonstrate compatibility with the fund’s responsible investing principles, including ESG factors. Managers can emphasize their ability to contribute to the system’s asset allocation adjustments in response to market conditions. As NYCERS prioritizes protecting member benefits, presentations should focus on proven track records in alternative investments like private equity and real assets, ensuring that commitments support the fund’s overall goals.

Frequently Asked Questions

1. What is the New York City Employees’ Retirement System?
   It is a defined benefit pension plan that provides retirement, disability, and death benefits to employees of New York City and its agencies.

2. What is NYCERS’ approximate assets under management?
   Approximately $75.6 billion as of June 30, 2023.

3. Which asset classes does NYCERS invest in?
   NYCERS invests in equities, fixed income, real estate, private equity, and hedge funds.

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