Bloomberg News

New York Pension Fund Lost 7.48% in Last Quarter, DiNapoli Says

November 23, 2011

Nov. 22 (Bloomberg) -- New York’s retirement fund, the third-largest U.S. public pension, posted an estimated 7.48 percent loss in the quarter ended Sept. 30, Comptroller Thomas DiNapoli said.

The fund was valued at $133.8 billion, DiNapoli said today in an e-mailed statement. That’s down 5.8 percent from when the fiscal year began April 1. The losses mean New York’s pension may miss its 7.5 percent assumed rate of return. The fund provides retirement benefits for more than 1 million state and local workers, except those employed by New York City.

“Like almost all investors, the fund has been affected by the sluggish economy and increased volatility in the markets,” DiNapoli said. “The fund remains one of the strongest in the U.S. and our diversified portfolio will keep it secure and poised for strong returns in the coming months.”

The New York pension had 101.5 percent of the money needed to pay its obligations in 2010, better than any other state, according to an annual study by Bloomberg Rankings.

The California Public Employees’ Retirement System, the largest U.S. public pension fund, lost 8.4 percent through Sept. 26. Public pension funds with assets of more than $5 billion lost a median of 8.53 percent in the third quarter of 2011, according to Wilshire Associates, a Santa Monica, California- based investment adviser.

The S&P 500 has lost 5.6 percent so far this year, according to data compiled by Bloomberg.

--With assistance from Jeran Wittenstein in San Francisco and Martin Braun in New York. Editor: Mark Schoifet

To contact the reporter on this story: Freeman Klopott in Albany at fklopott@bloomberg.net

To contact the editor responsible for this story: William Glasgall at wglasgall@bloomberg.net


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