Market turmoil following Great Britain's vote to leave the European Union emphasizes the need for diversification of pension funds across asset classes and geographic regions, said New York City Comptroller Scott Stringer.
"The vote in Britain to exit the European Union was unexpected and the financial markets are feeling the impact of that volatility. While we have certainly been paying close attention to ongoing events in the United Kingdom, the New York City pension funds are long term investors, with a diversified portfolio," Stringer said in a statement.
"With a 30-year horizon for our investments, short-term market fluctuations should always be kept in perspective."
Stringer, elected comptroller in 2013, is the custodian of the city's five public pension funds, whose estimated value is roughly $160 billion. While in office, he has undertaken a six-point program to overhaul administration of the system, including a ban on placement agents.
Working with the pension-fund trustees, Stringer has also instituted a common investment meeting, designed to streamline the operations of the five pension boards.
The city's primary employee pension funds are the New York City Employees' Retirement System; the Teachers' Retirement System of the City of New York; the New York City Police Pension Fund Subchapter 2; New York City Fire Department Pension Fund Subchapter Two; and the New York City Board of Education Retirement System.
Moody's Investors Service rates the city's general obligation bonds Aa2. Fitch Ratings and Standard & Poor's rate them AA.
