Announcement comes on the heels of new policies that seek to increase participation of minority and women-owned firms in the second largest public Deferred Compensation Plan in the country
To mark the end of Women’s History Month, Mayor Bill de Blasio today announced that, for first time in City history, a women-owned financial firm has been hired to manage $100 million of the City’s Deferred Compensation Plan the voluntary retirement plan for over 180,000 City employees and retirees. The firm – Longfellow Investment Management Co., LLC – is a City-certified, women-owned firm and will be managing assets in the Plan’s Stable Income Fund. The Stable Income Fund is one of seven investment options offered by the Deferred Compensation Plan. Longfellow will be managing assets in the Stable Income Fund’s portfolio that primarily focuses on government fixed income securities.
“While the numbers of women in the workforce are growing every day, asset fund management is still an industry that lags behind. We’ve decided to do our part to help right this wrong,” said Mayor Bill de Blasio. “I always say that this City works best when everyone – regardless of race, gender or ethnicity – has a chance to participate in our economy. The time for women to get a seat at the table has been long overdue, and I look forward to the unique prospective Longfellow Investment Management Co. will bring to the table.”
“With the hiring of Longfellow Investment Management Co. and EARNEST Partners and the implementation of our new M/WBE policy, we are taking steps towards an inclusive and equitable economy,” said Deputy Mayor for Strategic Policy Initiatives J. Phillip Thompson. “We are setting new standards across agencies by having them take a hard look at the diverse and talented businesses that are ready to work with us at every level of City government. Our City knows that investing in our M/WBEs means investing in our communities across the five boroughs.”
“We are excited to partner with the City of New York in the management of assets for its Deferred Compensation Plan,” said Barbara McKenna, Managing Principal of Longfellow Investment Management Co., LLC. “More asset owners are seeking out firms like Longfellow because they recognize the value of diversity and realize that they are missing out on talent if they limit their manager roster to only the largest firms.”
This announcement comes on the heels of the recently enacted policy that seeks to increase the participation of minority and women-owned firms in the Deferred Compensation Plan. The Office of Labor Relations, which acts as the administrator of the Plan, will actively encourage minority and women-owned businesses, and firms that partner with them, to participate in the hiring process. The qualifications of any MWBE firms that make proposals are examined and analyzed in the same manner as is used in examining all other firms. Longfellow was selected because they provided the Plan with the best combination of investment performance and low-cost fees. Over time, $9 billion of funds across the entire plan will become available for management.
This policy also led to the hiring of EARNEST Partners, an African-American led financial firm that will manage assets in the Stable Income Fund. EARNEST Partners will manage $100 million of the same portfolio.
“For the past four years, this Administration has tackled and implemented every policy with an eye towards equity and equality,” said Jonnel Doris, Senior Advisor and Director of the Mayor’s Office of Minority and Women-owned Business Enterprises. “Today is no different. With the hiring of Longfellow Investment Management Co. and EARNEST Partners, we are reminding Cities across America that women and minorities have the talent and expertise to do this work. Not only that, but these businesses also offer diverse and unique perspectives to City programs and projects that impact the lives of countless New Yorkers.”
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