Wednesday, November 2, 2022

Comptroller Unveils First Public Report Detailing Share of Minority and Women-Owned Businesses in NYC’s Asset Management and Public...

 

First-time Report Released During Annual Diverse and Emerging Manager Asset Managers Investment Conference

New York City Comptroller Brad Lander released a report detailing the Comptroller’s Office’s work with minority- and women-owned investment firms and emerging managers and with MWBE professionals in municipal finance.The report details allocations to MWBE asset management firms managing assets for the New York City Retirement Systems, the participation of asset management firms within the Systems’ Emerging Managers Program and MWBE Brokerage Program, and the efforts of the Bureau of Public Finance to expand their work with diverse firms. This marks the first time a report provides this level of granular detail on the Office of the New York City Comptroller’s work with MWBE firms in asset management and public finance. “This report provides the first public accounting of our allocations to MWBE and emerging investment firms and our work with diverse firms on the financing of our capital program. While there are many things to be proud of in this report, it is clear that we still have a long way to go. People of color – especially Blacks and Latinos – and women remain deeply underrepresented among our asset managers, even as we know that diversity drives strong returns. We cannot manage what we do not measure, it is our hope that this transparency and our work together helps move the needle forward on creating the opportunities that MWBE managers and firms need and deserve,” said New York City Comptroller Brad Lander. “Diversity, equity and inclusion are an important component of our fiduciary duty to generate sustainable and superior returns to benefit the nearly 800,000 City employees, retirees and their families who participate in the City’s pension funds. I look forward to working closely with our Trustees and investment and industry partners to achieve our goals of creating more diversity, equity and inclusiveness in our investments and the asset management industry in the interest of our beneficiaries,” said Steven Meier, Chief Investment Officer and Deputy Comptroller for Asset Management. This report comes as the Comptroller’s Office’s Bureau of Asset Management’s hosts the 2022 Annual Diverse and Emerging Managers Conference. For more on the conference, please visit www.comptroller.nyc.gov/bamconference. The New York City Retirement Systems, comprised of the City’s five public pension funds (the New York City Employees’ Retirement System, Teachers’ Retirement System, Police Pension Fund, Fire Pension Fund and Board of Education Retirement System), have approximately $240 billion in assets under management as of June 30, 2022. The five Systems have a total of $16.82 billion in investments with or committed to MWBE managers as of June 30, 2022. Those investments amount to 11.65% of U.S.-based actively managed assets, or approximately 7% of the total assets under management. The Systems have a total of $8.59 billion in investments with or committed to Emerging Manager firms as of June 30, 2022. The report details investments across each of the pension funds’ asset classes. The report also highlights the work that the Comptroller’s Bureau of Public Finance, which manages all aspects of City capital borrowing for the Comptroller in partnership with the Mayor’s Office of Management and Budget, is doing to expand the business the City is doing with MWBE vendors on municipal finance matters including bond underwriting and sales. In Fiscal Year 2022, the City of New York contracted with MWBE firms for 30.4% of bond underwriting, 41.5% of financial and swap advising, and 22.3% of bond counsel. To read the full report, visit here.

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