Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • Consultants
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2023
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • DC Plan Design: Improving Participant Outcomes
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
Breadcrumb
  1. Home
  2. Print
May 03, 2010 01:00 AM

Funds across country watching Goldman closely

  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print

    Public pension funds nationwide are reviewing their relationship with Goldman Sachs Asset Management following the SEC's charges against its parent.

    To date, however, only one has taken any special action such as placing GSAM on a watchlist.

    The $8.8 billion Oklahoma Teachers' Retirement System on April 28 placed the firm on “alert” status because of organizational concerns about its parent. GSAM runs $520 million in active domestic large-cap growth equities for the system.

    James Wilbanks, executive secretary, said: “We think it's prudent, when organizational issues are involved, to keep a closer eye on the managers.”

    Other funds, however, are waiting to see how the inquiries pan out.

    “The fund is constantly reviewing the performance of all of its investment managers and partners, including Goldman Sachs,” said Ola Fadahunsi, a spokesman for New York State Comptroller Thomas DiNapoli, the sole trustee of the $129.4 billion New York State Common Retirement Fund, Albany. “The fund will continue its diligent review of Goldman pending any further revelations, but we have not added them to any watch or review list at this time.”

    Mr. Fadahunsi said the fund had about $670 million invested with GSAM in an international equity portfolio as of March 31 and has committed a combined $100 million to private equity funds GS Capital Partners III and GS Capital Partners 2000.

    The New York state pension fund also owns about 2.2 million shares of Goldman Sachs common stock, worth about $352 million as of the April 20 closing price. The stock has lost about 13% of its value since the Securities and Exchange Commission filed charges in federal court April 16, accusing Goldman Sachs and one of its vice presidents of fraud over a financial product tied to subprime mortgages. Goldman Sachs denied the charges.

    The Florida State Board of Administration, Tallahassee, isn't placing the firm on special watch, said Dennis D. MacKee, communications director. GSAM manages a $2.6 billion core-plus fixed-income portfolio and a $95 million distressed debt opportunities fund for the board.

    No immediate impact

    “This (SEC indictment of Goldman Sachs) isn't going to have an immediate impact at all. I don't think (it requires an evaluation) beyond our normal watch of any manager,” Mr. MacKee said.

    “We don't have any holdings in any of the issues” named in the SEC charges against Goldman Sachs. “There is no reason to believe we have any problems, no reason to overreact,” he added.

    The board oversees $132.5 billion.

    In Connecticut, Attorney General Richard Blumenthal is launching an investigation of Goldman Sachs, said Christine Shaw, director of governmental relations for the Office of the State Treasurer.

    “We will continue to keep a watchful eye on the developments surrounding the SEC's legal action against Goldman Sachs, and (we) are prepared to assist our attorney general as he launches his own preliminary investigation into the matters,” she said.

    The state treasurer's office manages six state pension funds and eight state trust funds under the $22.9 billion Connecticut Retirement Plans and Trust Funds, Hartford.

    The funds hold about $42.5 million in Goldman Sachs common stock and $18.5 million in Goldman Sachs bonds, both as of April 16.

    Officials at the $98 billion New York City Retirement Systems are also watching for developments. “We're reviewing the events as they occur,” said Sharon Lee, a spokeswoman for the City Comptroller John Liu, investment adviser and custodian for the city's five pension funds. She would not say how much money the city's five pension funds have invested with GSAM.

    Michael Loughran, another spokes-man for Mr. Liu, said the pension funds collectively own 1.86 million shares of Goldman Sachs, valued about $298.1 million at April 20.

    In New Jersey, the “Division of Investment and the (state) attorney general are reviewing the state's interactions with Goldman and will take action if appropriate,” said Andrew Pratt, communications director for the state Department of Treasury. The division manages investments for seven public pension systems with a combined market value of $67.3 billion as of Feb. 26.

    Mr. Pratt was unable to immediately provide details on the pension funds' investments in GSAM or holdings in Goldman Sachs.

    The Western Conference of Teamsters Pension Trust, Seattle, is “not concerned about the direct impact” on the more than $1 billion in core fixed income managed by GSAM, said Alan D. Biller, president and senior consultant at Alan Biller and Associates, the $27 billion fund's consultant. “I'm sure it will come up for discussion at the next investment committee meeting” in June, he said.

    “It's too soon to make a judgment of what will happen,” he said.

    The SEC announcement came the day after the New Mexico Educational Retirement Board, Santa Fe, extended for one year Goldman Sachs' contract to manage $400 million in active domestic large-cap growth equities, said Bob Jacksha, chief investment officer.

    Staff at the $8.7 billion fund has not had an opportunity to discuss the implications of the SEC claims, if any, to the fund's relationship with the firm, Mr. Jacksha said.

    In Sacramento, Calif., Joseph Dear, chief investment officer of the $213.3 billion California Public Employees' Retirement System, said in an interview with reporters April 19 that he is highly disturbed by the SEC's allegations. He said CalPERS officials plan to bring up the issue with Goldman officials at a meeting at corporate headquarters in New York in the days prior to the company's annual meeting on May 7.

    He said the meeting had already been set up when the news broke on April 16.

    CalPERS has no direct investments with Goldman Sachs but does own 1.2 million shares of Goldman stock, purchased mostly as part of a passive index strategy.

    Recommended for You
    Read the print edition of P&I
    Targeting millennials: Author, niece put his latest book to music
    Targeting millennials: Author, niece put his latest book to music
    How low is low? Projections say it's not low enough
    How low is low? Projections say it's not low enough
    AI in Investment Management: Separating Hype from Reality
    Sponsored Content: AI in Investment Management: Separating Hype from Reality
    Sponsored
    White Papers
    Exploring the Commercial Application of Artificial Intelligence
    Conflict Minerals: The human cost of our electronics
    Research for Institutional Money Management
    Private real estate entry points emerging amid selloff
    2023 Hot Topics in Retirement and Financial Wellbeing
    Bonds: Shaken, but Not Stirred
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    December 12, 2022 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • Consultants
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2023
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • DC Plan Design: Improving Participant Outcomes
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars