Monthly Archives: July 2014

New York State Common Retirement Fund’s Emerging Manager Program

The New York State Common Retirement Fund (the Fund) can owe much of its high performance to its investment strategy, but another lesser-known investment approach that helps the Fund is its Emerging Manager Program. This program gives newer and smaller investment managers – people or firms who make investments on behalf of clients – the opportunity to invest for the Fund. And as you’ll see in this video, The Fund’s emerging managers deliver solid results.

8/7/14 Correction to video: We misstated the company name for interviewee Thurman White. Thurman White is from Progress Investment Management Co., not Program Investment Management Co.

The Emerging Manager Program: A Diverse Approach to Investing

The Fund’s Emerging Manager program started 20 years ago, when it granted almost $50 million to the public equity Emerging Manager platform. Today, in 2014, the Fund has provided $1.6 billion to that platform. The Fund is one of the few state pension funds in the country that features an emerging manager program across all major asset classes (private equity, public equity, hedge funds and real estate).

The goal of the program is to invest some of the Fund’s assets with smaller, newer managers, most of which are minority- and women-owned firms. By investing with emerging managers, who tend to focus on the smaller ends of the market, the Fund’s investment portfolio becomes more diverse, and ultimately, more sustainable. In turn, the emerging managers gain the capital and experience they need to become larger, best-in-class investment managers.

At this year’s emerging manager conference, Comptroller Thomas P. DiNapoli summed up the benefit of the Fund’s Emerging Manager Program. “When you look at our program, and the success of it, and the overall strength of the Fund, it’s proof that expanding opportunities and access, to women-owned firms, to firms of color, to emerging managers – it’s not only the right approach, but it’s certainly the best approach.”

Visit the Division of Pension Investment & Cash Management on our website for more information on the Fund and the Emerging Manager Program.

Retirement Planning — Start Thinking Outside The Box

Even though your retirement planning is helping you get ready for your last day of work, take the time to start thinking about what your life will be like after retirement. Will your financial situation be stable once you start receiving your pension, or will you need to supplement your income with your personal savings or Social Security? What will your health insurance situation be like when you are no longer working? These are important questions to ask before you file for retirement, and it’s the perfect time to start finding answers.

Preparing for Retirement: Part Four – Plan Outside the Box

The Preparing for Retirement 7-part video series discusses the main aspects of retirement planning to help NYSLRS members nearing retirement make good, informed decisions for the future. In Part Four – Plan Outside the Box, you’ll hear about other aspects of retirement planning you may be overlooking. By making sure your post-retirement financial situation is secure, you can be better prepared for the future.

Important Links for Retirement Planning

Where to Find More Retirement Planning Information

If you are close to retirement and have more questions, consider scheduling an appointment to meet with an information representative at one of NYSLRS’ consultation sites in New York State. Don’t forget to check back for the rest of the Preparing for Retirement video series, which includes retirement planning topics like:

Countdown To Retirement — The Last 18 Months

After taking the time to plan and get informed about your NYSLRS retirement benefits, you’ve decided you’re ready to retire. There are important things you need to do in the final months leading up to your retirement date. Our Countdown to Retirement series will help you remember what to do and when.

At 18 Months Out

When you are within 18 months of your planned retirement date, you should request a NYSLRS retirement estimate. This estimate contains information about your retirement benefits and the approximate amount of what your retirement benefit could be under different payment options.

To get your NYSLRS retirement estimate, send us a completed Request for Estimate form. Make sure you include the following on the form:

  • Planned retirement date
  • Name and birth date of your intended beneficiary
  • Public employment history

Your NYSLRS Retirement Estimate

When you receive your NYSLRS retirement estimate, you can expect to see your:

Having your NYSLRS retirement estimate also allows you to see how your pension could be affected by an outstanding loan balance or if you purchase additional service credit. By finding this information out now, you can avoid any surprises when you finally retire.

The NYSLRS retirement estimate is based on the information we have on file for you, so once you receive your estimate, make sure that it’s accurate and report any errors to us as soon as possible. Also keep in mind that if you receive your estimate, and decide that you are not ready to retire, you can request a new one whenever your situation changes.

Counting Down

Your planned retirement date will be around the corner before you know it. Check back for more Countdown to Retirement posts on pre-retirement issues, reviewing other retirement income, and preparing a post-retirement budget.

The New York Common Retirement Fund – A Long Term Track Record of Investment Success

The New York State Common Retirement Fund (the Fund), has a solid track record of exceptional long-term market performance. The Fund’s historical success is principally due to a sound investment strategy that is based on the Fund’s asset allocation and diversification.

The objective of the Fund, which is the third largest public pension fund in the country, is to achieve long-term growth, while meeting the cash flow needs to pay benefits to the New York State and Local Retirement System (NYSLRS)’s 422,405 retirees and beneficiaries and to meet the needs of future retirees. To accomplish this, New York State Comptroller Thomas P. DiNapoli has implemented a diversified investment strategy designed to meet current funding needs and future growth requirements while controlling risk.

How Pensions are Funded

The Fund’s assets come from three main sources: member contributions, employer contributions and investment earnings. Over the last 20 years, from April 1, 1993 through March 31, 2013, 80 cents of every dollar paid in benefits has come from investment earnings.

The Fund’s Investment Strategy Is The Key

Investments are made in a well-balanced variety of assets classes, which include global equity, domestic equity, core fixed income, real estate, private equity and absolute return strategies portfolios as well as Treasury Inflation Protected Securities.

The sound investment framework provided by the Fund’s asset allocation and diversification strategy enabled it to generate a 13.02 percent rate of return on its investments during the 2013-14 fiscal year. As of March 31, 2014, the Fund was valued at $176.2 billion. Since 2009, the Fund has seen five consecutive years of investment earnings growth. Prior to the recession, in fiscal year 2006-07, the value of the Fund was $154.6 billion.

For more detailed information on the Fund, visit the Division of Pension Investment and Cash Management.