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NYC Pensions Seek New Managers
17 Jun
Summary
- New York City pension funds are searching for new asset managers.
- The search includes indexes weighted by ESG factors and carbon limits.
- The city's pension systems oversee $127.11 billion in public equity investments.
New York City's five public pension systems, collectively managing $127.11 billion in public equity investments as of March 31, are launching a search for new asset managers. This initiative focuses on passive indexing of public equity stocks, with a notable emphasis on seeking indexes that incorporate environmental, social, and governance (ESG) factors and carbon limits, provided they align with each pension system's guidelines.
The search for asset managers is a critical step in ensuring strong investment returns and fulfilling the mandate for public sector workforce and retirees. The city's pension systems last engaged in a similar solicitation for public equity index services in 2017. Asset managers have until July 15 to submit their applications for consideration.
Three of the city's pension funds aim to achieve net-zero portfolios by 2040 and have already surpassed interim targets for reducing financed emissions. The evaluation process for new asset managers will weigh firms' investment management capabilities and decision-making processes heavily (60%), alongside organizational characteristics like team diversity and asset size (40%).
