Monday, January 4, 2016

NYCERS Investment Performance and Fees for FY-2015

As of June 30, 2014 NYCERS had a closing balance of $54,422.0M.

As of June 30, 2015, one year later, NYCERS had a closing balance of $54,889.3M

During FY-2015 NYCERS had revenue of $5,089.1M and expenses of $4,571.0M. That is a net inflow of $518.1M.

After the net inflow is subtracted from the June 30, 2015 closing balance, the adjusted FY-2015 closing balance is $54,371.2M. That is a decrease in assets for the year of $50.8M. This is essentially a no change in the value of the assets for the year.

During FY-2015, the S&P 500 index increased from 1960.23 to 2063.11 and the Barcaly's US Aggregate Bond Index increased by 1.86%. With a 70% stock/ 30% bond allocation, you should have had a target of 4.12% increase in assets for FY-2015.

At no point have the NYCERS Trustees made a public statement explaining why the fund performed so poorly or what they are going to do about it.

In conjunction with this poor performance NYCERS "reported" paying $231.8M in investment expenses for FY-2015. In FY-2014 NYCERS "reported" paying $184.6M. Listed below are the specifics of the $231.8M:

  1. $28.4M : general stock & bond managers
  2. $ 2.9M : Emerging managers - US equity
  3. $ 0.4M : Emerging managers - US Fixed inc.
  4. $ 7.0M : Junk bond managers
  5. $ 2.3M : Convertible Bond managers
  6. $40.4M : PE managers
  7. $12.7M : PE Opportunity & Global FI
  8. $31.7M : International Equity managers
  9. $17.8M : RE managers
  10. $39.8M : Hedge fund managers
  11. $ 3.5M : investment consultants
  12. $ 0.1M : legal fees (investment)
  13. $13.0M : PE organizational fees
  14. $ 5.1M : RE organizational fees
  15. $ 4.5M : PE Opp/Global organizational fees
  16. $15.5M : Foreign taxes
  17. $ 2.1M : Comprtroller's subsidy
  18. $ 4.5M : Miscellaneous

No one knows who the organization fees are paid to. That is $22.6M off into the great beyond.

Don't you wonder what the miscellaneous stuff was that the $4.5M bought?

What will the Comptroller's subsidy be in FY-2016 what with all the huge pay increase that the "investment" staff got in August?

This is all such obvious insanity. None are so blind as those who will not see.

1 comment:

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