As of December 31, 2012 NYCERS had 263 open contracts with investment managers. For details see pages 103 and 119-124 of NYCERS FY-2012 CAFR .
In the table below I have listed 12 of these managers along with the assets they have under management and the fees NYCERS paid them in FY-2012. I picked these managers because not only are they sufficient to manage the total NYCERS portfolio, they are significantly more effective and efficient than the mob of plus 230 current managers. These twelve managers represent the index/core strategy I referred to in a previous posting.
It is always enlightening to see specific details about big picture issues. You can get clear sense of what is going on. Of course, limiting the investment activity to these twelve managers would have a profound effect on the broad investment community. What is good for NYCERS, is not necessarily what is good for "Wall Street".
These 12 managers handle approximately 28.5% of NYCERS assets but their fees represent only 3% ($3.88M) of the total $130.81M paid in investment fees in FY-2012. It is reasonable to estimate that if they handled all of NYCERS assets, the annual fees would run about $10M. Total returns would be higher and the internal management at the Comptroller's Office and NYCERS would be far simpler and transparent.
The Comptroller wouldn't have to worry about replacing his departing private equity specialist. It is highly unlikely any competent investment specialist would sign up for the last 7 months of Liu's term.
NYCERS - The Index/Core Strategy Managers
| Manager
| Category
| Asssets: December 31, 2012
| Fees: FY-2012
|
| Blackrock R3000
| Russell 3000 Index
| $3,710.66M
| $184,173
|
| State Street R3000
| Russell 3000 Index
| $1,803.35M
| $304,439
|
| Sate Street Global Advisors
| EAFE (developed international) Index
| $1,119.15M
| not reported
|
| Blackrock EM
| Emerging Markets Index
| $1,078.31M
| $99,331
|
| Blackrock
| Government & Agency Bonds
| $425.68M
| $186,104
|
| PIMCO
| Government & Agency Bonds
| $460.52M
| $186,881
|
| Blackrock
| Mortgage Bonds
| $675.25M
| $305,410
|
| Neuberger Bermann
| Mortgage Bonds
| $733.52M
| $511,144
|
| PIMCO
| Mortgage Bonds
| $760.26M
| $350,840
|
| Barrow Hanley
| Corporate Bonds
| $562.92M
| $642,933
|
| Taplin, Canida
| Corporate Bonds
| $580.87M
| $349,386
|
| T. Rowe Price
| Corporate Bonds
| $678.66M
| $648,665
|
Note: A "not reported" item is an accounting error on a financial report (accrual method).
-----------------------------------------------------------------------------------------------
Listed below is a sample of some of the investment managers under contract with NYCERS who are unnecessary for the effective performance of the NYCERS portfolio. I'll bet the trustees have no idea that there are some many mangers and how much they are being paid.
NYCERS - Some of the Unnecessary Investment Managers
| Manager
| Category
| Asssets: December 31, 2012
| Fees: FY-2012
|
| Research Affiliates
| Domestic Equity Index
| $912.84
| $1,293,845
|
| Attucks
| Domestic Equity (Minority/Women)
| $216.49M
| $1,179,486
|
| Capital Prospects
| Domestic Equity (Minority/Women)
| $51.44M
| $268,539
|
| Progress Management
| Domestic Equity (Minority/Women)
| $281.14M
| $1,468,541
|
| F.I.S. Managers
| Domestic Equity (Minority/Women)
| $166.85M
| $828,940
|
| Walden Asset Mgnt
| Domestic Equity (Environmental)
| $253.86M
| $308,333
|
| Breeden Capital Mgmt
| Domestic Equity (Environmental)
| not reported
| $1,118,833
|
| Progress Management
| International Equity (Minority/Women)
| $42.79M
| $310,251
|
| Ballie Gifford
| International Equity
| $432.79M
| $1.037,943
|
| GE Asset Management
| International Equity
| $109.52M
| $1,162,633
|
| Mondrain
| International Equity
| $239.08M
| $1,214,513
|
| Sprucegrove
| International Equity
| $529.97M
| $1,047,245
|
| Philadelphia
| International Equity
| $315.79M
| $1,373,394
|
| Thornburg
| International Equity
| $570.97M
| $2,248,851
|
| F&C SGE
| International Equity (Environmental)
| $55.60M
| $337,259
|
| Generation GE
| International Equity (Environmental)
| $133.85M
| $1,772,148
|
| Governance for Owners
| International Equity (Activist)
| $254.74M
| $841,776
|
| Acadian
| Emerging International Equity
| $318.37M
| not reported
|
| Ballie Gifford
| Emerging International Equity
| $334.09M
| $2,501,886
|
| DFA
| Emerging International Equity
| $558.15M
| $1,519,145
|
| Eaton Vance
| Emerging International Equity
| $569.31M
| $554,824
|
| Permal Asset Management
| Hedge Fund
| $254.98M
| $1,452,171
|
| Blue Trend
| Hedge Fund
| $115.19M
| not reported
|
| Brevan Howard
| Hedge Fund
| $199.42M
| not reported
|
| Brigade Lev Cap Str
| Hedge Fund
| $116.16M
| not reported
|
| Caspian Select Cf
| Hedge Fund
| $88.31M
| not reported
|
| D.E. Shaw
| Hedge Fund
| $227.95M
| not reported
|
| Aisling Capital II
| Private Equity
| $4.28M
| $71,973
|
| Aisling Capital III
| private Equity
| $6.27M
| $274,905
|
| Allergra
| private Equity
| $0.06M
| not reported
|
| American Sec Partners VI
| private Equity
| $24.83M
| $685,718
|
| Ampersand 2006
| private Equity
| $24.42M
| not reported
|
| Ampersand 2009
| private Equity
| $16.37M
| not reported
|
| Apollo Investment Fund V
| private Equity
| $11.16M
| not reported
|
| Apollo Investment Fund VI
| private Equity
| $92.17M
| not reported
|
| Apollo Investment Fund VII
| private Equity
| $82.90M
| $1,205,026
|
| Ares Corp Opp
| private Equity
| $18.29M
| $121,554
|
| Ares Corp Opp II
| private Equity
| $26.48M
| $209,001
|
| Ares Corp Opp III
| private Equity
| $70.96M
| $1,111,806
|
| Ares Corp Opp IV
| private Equity
| $3.86M
| not reported
|
| Axa Secondary Fund V
| private Equity
| $56.56M
| $1,368,478
|
| BC European Capital
| Private Equity
| $47.70M
| $2,092,480
|
| BDCM Opportunity Fund
| private Equity
| $7.95M
| $395,168
|
| BDCM Opportunity Fund II
| private Equity
| $29.87M
| $399,327
|
| BDCM Opportunity Fund III
| private Equity
| $14.66M
| $675,930
|
| Blackstone Capital Ptnrs IV
| Private Equity
| $15.88M
| not reported
|
| Blackstone Capital Ptnrs V
| Private Equity
| $9.38M
| $553,449
|
| Blackstone Capital Ptnrs VI
| Private Equity
| $26.76M
| $1,136,958
|
| Blackstone Mezzanine Ptnrs II
| Private Equity
| $11.62M
| $245,257
|
| Blue Wolf Capital Fund II
| Private Equity
| $17.18M
| not reported
|
| EQT VI
| Private Equity
| $25.24M
| $1,674,292
|
| Fourth Cinven Fund
| Private Equity
| $68.06M
| $901,122
|
| Green Eq Inv VI
| Private Equity
| $14.6M
| not reported
|
| Landmark Equity XI
| Private Equity
| $10.78M
| not reported
|
| Landmark Equity XIV
| Private Equity
| $59..39M
| not reported
|
| Landmark Fund XIII
| Private Equity
| $25.40M
| not reported
|
| New Mountain Ptnrs
| private Equity
| $1.86M
| -$231,107
|
| New Mountain Ptnrs II
| private Equity
| $27.50M
| -$450,855
|
| New Mountain Ptnrs III
| private Equity
| $54.50M
| $1,424,805
|
| Onex Ptnrs III
| private Equity
| $7.95M
| $1,089,789
|
| Quadrangle Cap Partners II
| Private Equity
| $42.57M
| $503,573
|
| Ripplewood Partners II
| Private Equity
| $8.89M
| $21,583
|
| Tailwind Capital
| Private Equity
| $1.88M
| $606,463
|
| Vista Equity III
| Private Equity
| $31.82M
| $336,956
|
| Vista Equity IV
| Private Equity
| $33.68M
| $1,483,426
|
| Wellspring Cap Ptnrs V
| Private Equity
| $9.09M
| $908,561
|
| Welsh Carson Anderson & Stone XI
| Private Equity
| $31.42M
| not reported
|
| Yucaipa American Alliance FD
| Private Equity
| $65.58M
| $637,938
|
| Yucaipa American Alliance FD II
| Private Equity
| $150.53M
| $423,574
|
| Yucaipa Corp Initiative II
| Private Equity
| $22.40M
| $624,375
|
| Amer Value Ptnrs I
| Real Estate
| $24.57M
| -$326,904
|
| Apollo Europe III
| Real Estate
| $25.97M
| $523,333
|
| Apollo RE Fund V
| Real Estate
| $10.76M
| $278,780
|
| Blackrock Carbon III
| Real Estate
| $31.18M
| not reported
|
| Blackstone RE Ptnrs EU III
| Real Estate
| $37.09M
| $750,000
|
| Blackstone IV
| Real Estate
| $17.13M
| $317,794
|
| Blackstone VI
| Real Estate
| $131.89M
| $1,466,194
|
| Blackstone VII
| Real Estate
| $77.399M
| $1,784,556
|
| Brookfield Strategic RE Ptnrs
| Real Estate
| $12.26M
| not reported
|
| Canyon Johnson Urban Fund
| Real Estate
| $0.01M
| -$19,101
|
| Canyon Johnson Urban Fund II
| Real Estate
| $19.99M
| -$133,311
|
| Canyon Johnson Urban Fund III
| Real Estate
| $22.50M
| $300,000
|
| Capri Urban Investors
| Real Estate
| $39.36M
| $744,550
|
| Carlyle R.P. Fund V
| Real Estate
| $14.49M
| $636,344
|
| Carlyle Realty VI
| Real Estate
| $22.12M
| $118,142
|
| Colony Realty Ptnrs II
| Real Estate
| $8.75M
| not reported
|
| H/2 Special Opportunity Fund II
| Real Estate
| $12.56M
| not reported
|
| Heitman America
| Real Estate
| $138.63M
| $616,535
|
| JPM Strategic Property Fund
| Real Estate
| $165.35M
| $1,464,228
|
| JPM Special Situation Fund
| Real Estate
| $72.94M
| $1,117,013
|
| Silverpeak RE Ptnrs III
| Real Estate
| $9.16M
| $300,510
|
| The City Investment Fund
| Real Estate
| $92.15M
| not reported
|
| Thor Urban Property Fund II
| Real Estate
| $26.59M
| $1,030,292
|
| Tishman Speyer/Citigroup
| Real Estate
| $38.60M
| not reported
|
| UBS Trumbull Property Fund
| Real Estate
| $186.05M
| $1,263,748
|
| Urban America II
| Real Estate
| $13.49M
| not reported
|
| Walton St RE Fund VI
| Real Estate
| $47.12M
| -$62,722
|
| Westbrook RE Fund VII
| Real Estate
| $30.85M
| $498,359
|
| Westbrook RE Fund VIII
| Real Estate
| $47.77M
| $751,032
|
| Loomis Sayles
| Enhanced Yield Bonds (Junk)
| $547.40M
| $1,933,194
|
| Shenkman
| Enhanced Yield Bonds (Junk)
| $249.91M
| $1,015,023
|
| T. Rowe Price
| Enhanced Yield Bonds (Junk)
| $485.14M
| $1,400,339
|
| Advent
| Convertible Bonds
| $275.87M
| $1,330,140
|
| Lord Abbett
| Convertible Bonds
| $144.78M
| $326,330
|
| Victory
| Convertible Bonds
| $146.32M
| $448,484
|
| Comptroller's Payroll
| subsidy
| $0.00M
| $1,983,615
|
| Unknown
| Private Equity Organizational Costs
| $0.00M
| $7,893,741
|
| Unknown
| Real Estate Organizational Costs
| $0.00M
| $4,770,660
|
| Aksia
| consultant
| $0.00M
| $540,867
|
| PCG
| consultant (private equity)
| $0.00M
| $463,888
|
| Stepstone
| consultant (private equity)
| $0.00M
| $916,667
|
| Torreycove
| consultant
| $0.00M
| $456,654
|
| Townsend Group
| consultant (real estate)
| $0.00M
| $384,790
|
Note: The following is a great NY Times article on how trustees can lose their way.
