The New York City Retirement Systems posted a net 3.15% return for the fiscal year ended June 30.
Total system assets as of June 30 were $162.9 billion, up about 1.5% from the previous fiscal year, when the retirement system recorded a 17.4% return.
“While market returns were modest in fiscal 2015, we have confidence that our portfolio is well positioned to maximize our ability to deliver our assumed rate of return over time,” Scott Evans, chief investment officer, said in a news release issued by the city comptroller’s office.
In the news release, Comptroller Scott Stringer said the retirement system will start reporting quarterly and annual returns net of fees across all asset classes. The 3.15% return figure for the year ended June 30 was the first time the system had reported its returns net of fees. It returned 3.4% gross of fees. Individual asset class returns were not provided.
“The New York City pension funds performed well in a difficult investing environment, but we are always focused on investing for the long term,” Mr. Stringer said in the news release. Mr. Stringer is the fiduciary for the five pension funds that comprise the city pension system.
The return and asset figures for the fiscal year are estimates. John McKay, a spokesman for Mr. Stringer, said in an interview that audited numbers will be available in several weeks when the comptroller’s office publishes its comprehensive annual financial report.
Based on available and incomplete information, the pension system paid about $407.3 million in fees, but that number does not include all fees paid for private equity and hedge fund investments. A complete accounting for fees will be available when the annual financial review is published.
For the system as a whole, domestic equity represented the largest component at 34.3% of total assets. The rest of the asset allocation is 28.8% fixed income, 17.1% international equity, 6.1% private equity, 4% real assets, 3.9% cash, 2.3% opportunistic fixed income, 2.1% hedge funds and the rest in real estate investment trusts.