The five pension funds under the New York City Retirement Systems plan has agreed to commit $1 billion to emerging firms in an effort to diversify its portfolio and to improve its returns.
While the pension funds did specify when they will make the allocations, the spokesperson for City comptroller Scott Stringer told Pensions & Investments that they are expected to be made “over the coming months.”
The $1 billion commitment would bring the pension funds’ total investments in emerging managers to $13.9 billion. The comptroller’s office defines emerging managers as “firms that are smaller and overlooked by traditional search processes."
The comptroller’s office will work with the pension boards over the coming months on specific issues.
The pension funds manage a total of approximately $150 billion for New York City employees.