The New York City Retirement Systems (NYCRS) wants to begin managing in-house like the Ontario Teachers’ Pension Plan, according to a report.
Bloomberg News reports that the US$140-billion pension fund is the only one of the 11 largest U.S. public worker funds that doesn’t manage assets internally and that its chief investment officer, Larry Schloss, wants that to end.
NYCRS pays about $360 million annually to have its assets managed externally. He notes that Teachers’ has outperformed NYCRS over the past decade because it didn’t need to pay outside managers.
As an example, Schloss said the fund could use an in-house team to manage $1 billion in assets, and if it returned 12% annually, the fund could save $4 million in fees every year over five years.