NYCERS Assets as of June 30, 2009

As of June 30, 2009 the S&P 500 index closed at 919.32. This was a significant increase from the March 31, 2009 close of 797.87. A reasonable estimate of the closing balance of NYCERS assets as of June 30, 2009 is $29.79B up from $28.09B on March 31, 2009. In spite of this $1.7B increase for the 4th quarter, the loss for the full year was still a devastating $9.07B.

The $29.79B balance includes a $1.9B private equity component and $1.1B real estate component. These items are not set at a market value but at an amount equal to the money that was originally invested. There is not reflection of profit or loss in these values. NYCERS has no policy for reporting these investments at their true value.

NYCERS uses the Pacific Corporate Group as its investment consultant for private equity investments. As reported in a recent WSJ article Pacific Corporate Group entered into settlement with the NYS Attorney General Office with respect to investment allegations. It is not clear how the NYCERS trustees are going to respond to this agreement.

The following is a table of NYCERS Assets and Benefits for the last ten years. It is clear that assets are trending down and benefits are trending up. This is not sustainable.

Year	Assets	Benefits & Expenses
2000	$42.8B	$2.54B
2001	$38.1B	$2.78B
2002	$32.8B	$2.57B
2003	$31.5B	$2.89B
2004	$34.1B	$2.80B
2005	$35.5B	$2.92B
2006	$37.2B	$3.06B
2007	$42.5B	$3.34B
2008	$39.7B	$3.22B
2009	$29.8B	$3.45B