Lawrence Schloss, deputy comptroller for pensions and chief investment officer of the New York City pension funds, will step down on Oct. 18, city Comptroller John Liu announced.
Schloss, whom Liu appointed in January 2010 to oversee the management of the city’s five pension funds, will become president of private investment firm Angelo, Gordon & Co., Liu said Wednesday.
The pension funds are valued at roughly $145 billion.
Liu named Seema Hingorani to fill the interim position. She has overseen the funds’ $80 billion public equities assets since April 2010.
“Nearly four years ago, we were fortunate that Larry Schloss chose to enter public service after building a sterling reputation in the private sector,” Liu said. “During Larry’s tenure as chief investment officer, the city’s pension funds grew by $45 billion, to $145 billion, the largest increase recorded by any [New York City chief investment officer] ever.”
Liu said the funds’ increased returns under Liu will annually reduce the city's pension contributions over the next six years by billions of dollars.
Liu will leave office on Dec. 31 after one-four year term. He finished last in a four-way Democratic primary for mayor in September.
For the three full fiscal years ending in June 2013, during Liu’s term, the funds achieved an annualized rate of return of 11.9%., Liu said.
Before Schloss arrived, the funds’ 10-year return was 2.8% and in the bottom quartile of their large public pension fund peers, the comptroller said. Less than four years later, according to Liu, the funds’ 10-year annualized return has increased to 7.6% against its assumed actuarial interest rate of 7%.
Previously, Schloss was a private equity fund manager who served on the board of directors of MF Global Holdings.
The pension funds consist of the Teachers’ Retirement System, New York City Employees’ Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and the Board of Education Retirement System.