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New York City\u2019s five pension funds reported an aggregate 13% investment return in fiscal 2026\u2014the one-year period that ended June 30\u2014New York City Comptroller Mark Levine announced Wednesday. <\/p>\n
Assets of the five systems\u2014the New York City Teachers\u2019 Retirement System, the Employees\u2019 Retirement System, the Police Pension Fund, the Fire Pension Fund and the Board of Education Retirement System\u2014now manage a combined $326.3 billion in assets. <\/p>\n
Additionally, the comptroller\u2019s office reported three-, five-, seven- and 10-year annualized returns of 11.1%, 6.2%, 8.6% and 8.9%, respectively. The city\u2019s pension funds\u2019 assumed actuarial return target is 7% to meet ongoing pension liabilities. Fiscal 2026 performance will also reduce pension obligations by $6.3 billion over five fiscal years beginning in fiscal year 2028, the comptroller\u2019s office reported. <\/p>\n
\u201cRetirees work for decades to earn the financial security that a pension provides and protecting that security requires a disciplined and prudent investment approach,\u201d Levine said in a statement. \u201cGlobal markets faced significant headwinds over the past year, and our results demonstrate the importance of maintaining a long-term focus and a diversified strategy designed to deliver sustainable, risk-adjusted returns for decades to come.\u201d <\/p>\n
Emerging markets investments, which make up 4.6% of the portfolio, accounted for the city funds\u2019 best-performing investment strategy, with a 42% return and a 1.7-percentage-point contribution to returns. U.S. equities\u2014which represented 27.4% of total assets\u2013generated a 22.9% return and contributed 5.9 percentage points to total returns. <\/p>\n
Additionally, hedge funds returned 19.2% during the fiscal year, a record return for the city\u2019s hedge fund program. The comptroller\u2019s office also reported stronger returns in real estate, at 6.3%, due to a strategic shift towards multifamily and industrial properties and a reduction in the funds\u2019 commercial office exposure. <\/p>\n
\u201cThis past year\u2019s performance reflects our commitment to deliver for hundreds of thousands of members and beneficiaries counting on us to safeguard the retirement assets that they have worked tirelessly to earn,\u201d said Monte Tarbox, CIO of the comptroller\u2019s Bureau of Asset Management, which oversees the investments of the city\u2019s pension funds. \u201cI am grateful for the leadership of Comptroller Levine, and the commitment of staff within the Bureau of Asset Management, and our fruitful partnership with our asset managers, trustees and investment consultants that made this possible.\u201d\n <\/p>\n
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