New York City Retirement Systems will issue RFPs for managers to run $361 million in real estate assets and $253 million in TIPS for four of the city's five public pension funds, the result of a new asset allocation policy, said Jeff Simmons, spokesman for Comptroller William C. Thompson Jr., who oversees the $74 billion system. The real estate RFP will be released in November; the RFP for TIPS will be released the following month, he added.
The new policy affects the $30.8 billion New York City Employees' Retirement and $23 billion teachers' retirement systems; and the $13.8 billion police and $4.7 billion fire pension funds. The policy, set after each fund conducted a separate study, will remain 70% equities, 30% fixed income but with greater diversity within those categories. The 5% real estate allocation will be under equities, and the 3.5% TIPS allocation will be within fixed income. Private equity, which will be under equities, will increase to 5% from 2%. Real estate and private equity will be funded from U.S. equities, with TIPS funding coming from fixed income. Reductions rather than terminations will be used to fund the new mandates.