New York CRF Subscribes to Global Equity Managers

Published November 05, 2013, 9:04 a.m. EST

Updated November 05, 2013, 9:14 a.m. EST

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The New York Common Retirement Fund’s global equity commitment threshold rose by $800 million in new and add-on investments in September, according to an article in Investment Management Mandate Pipeline.

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Listed in the September monthly transaction report, Artisan Partners, PENN Capital Management and FIS Group were the beneficiaries of the new investments, Michael Giardina writes.

According to the recap, $300 million was awarded each to Artisan’s small-cap growth mandate and PENN’s small-cap contract.

Allocations for both firms “are part of an effort to be more diversified and active’ in small-cap strategies,” according to Eric Sumberg, press secretary for New York State Comptroller Thomas DiNapoli.

Artisan is based in Milwaukee while PENN and FIS are headquartered in Philadelphia. Artisan and PENN are new relationships for the CRF.

FIS, listed as an existing manager, received $205 million into its global equity portion, Giardina writes. Sumberg explained the firm has changed from a $900 million domestic mandate to a global mandate. FIS has managed CRF funds since 2003.

In August, DiNapoli said that private equity and absolute return strategies Los Angeles-based Platinum Equity and New York firm Apollo Global Management were tapped to manage about $600 million in private equity, Giardina wites. And $250 million was invested with HBK Capital Management’s HBK Master Fund, an absolute return fund.

For the fiscal year that ended in March, the retirement fund, which has more than 1 million members, reached an all-time high of $160.4 billion thanks to a 10.38% investment return, the report stated.

As of March 31, Mandate Pipeline reports that actual allocations included 39.1% to domestic equity, 19.6% to cash, bonds and mortgages, 15.4% to international equity, 9.6% to private equity, 7.6% to inflation-indexed bonds, 6.1% to real estate, 2% to absolute return, 0.3% to opportunistic and nothing in real assets.

However, the report states that long-term policy allocations include 30% to domestic equity, 22% to cash, bonds and mortgages, 13% to international equity, 10% to private equity, 8% to inflation-indexed bonds, 6% to real estate, 4% to absolute return, 4% to opportunistic and 3% in real assets, Giardina writes.