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.