New York's Bureau of Asset Management will recommend the New York City Employees' Retirement System terminate underperforming equity managers after trustees approve a new asset allocation, Donna Anderson, CIO for NYCERS, told fund trustees. Approval of the asset allocation is expected next month.
According to the $30 billion fund's latest performance report, just 20% of NYCERS' active equity managers beat their benchmarks for the year ended June 30. Overall, equities were the fund's strongest performing asset class, generating a 30.5% return for the year. NYCERS indexes 60% of its equities.
The system earned a total return of 22.3% for the fiscal year that ended June 30, while the Callan Public Fund Median, NYCERS' benchmark, returned 18.8% for the year.
Orange County Employees' Retirement System, Santa Ana, Calif., asked PMRealty to conduct a strategic study of the $3.6 billion plan's real estate investments. The study should be finished in 60 to 90 days.
Ray Fleming, retirement administrator, said the fund is in a ``reduction mode'' on real estate investments. The fund has 14% of assets in real estate, but is looking to reduce that amount to 9% or 10% of assets.
A decision on whether to let one of the fund's real estate investors, GIM Capital, invest in REITs was put on hold until the real estate strategic plan is finished and studied
SunTrust Banks signed a definitive agreement to purchase Equitable Securities. Equitable's money management units, Equitable Trust and Equitable Asset Management, with about $1.5 billion total under management or administration, will continue to operate independently. SunTrust's existing money management units, STI Capital Management and Trusco Capital, run about $12 billion and $16 billion, respectively.
Goodyear Tire and Rubber Co., Akron, Ohio, replaced a $95 million midcap portfolio managed by Bank of America for its pension fund with a $140 million small-cap mandate run by the same firm. Additional funding for the $140 million assignment will come from the $2.9 billion fund's existing equity managers, said Duane Smith, director of global benefit financing. Wilshire assisted.