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:
- $28.4M : general stock & bond managers
- $ 2.9M : Emerging managers - US equity
- $ 0.4M : Emerging managers - US Fixed inc.
- $ 7.0M : Junk bond managers
- $ 2.3M : Convertible Bond managers
- $40.4M : PE managers
- $12.7M : PE Opportunity & Global FI
- $31.7M : International Equity managers
- $17.8M : RE managers
- $39.8M : Hedge fund managers
- $ 3.5M : investment consultants
- $ 0.1M : legal fees (investment)
- $13.0M : PE organizational fees
- $ 5.1M : RE organizational fees
- $ 4.5M : PE Opp/Global organizational fees
- $15.5M : Foreign taxes
- $ 2.1M : Comprtroller's subsidy
- $ 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?
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