Goldman Sachs, New York Pension Fund Team Up In $2B Venture

Goldman Sachs, New York Pension Fund Team Up In $2B Venture

New York State Comptroller Thomas P. DiNapoli announced that the New York Common Retirement Fund (CRF) established a strategic partnership with Goldman Sachs Asset Management (GSAM) to invest $2 billion in a diverse group of global equity strategies.

According to the state comptroller, the CRF’s strategic partnership with Goldman Sachs Asset Management is the first of its kind for the pension fund, and it is considered to have strong potential to boost return.

Key to continued growth

In a statement, DiNapoli said, “This innovative partnership gives the New York State Common Retirement Fund full access to world class global equity investment opportunities and the nimbleness to take advantage of them on a timely basis.”

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He added that the partnership between the CRF and Goldman Sachs Asset Management is designed to strengthen the pension fund because it is beneficial for the current and future public employee retirees of the state of New York.

Furthermore, DiNapoli said, “Identifying new opportunities is the key to the continued growth of the Fund’s long-term value.

Goldman Sachs to provide strategic advice

According to the state comptroller, CRF and Goldman Sachs Asset Management will initially focus on selecting dynamic manager opportunities in global equities to improve returns on the pension Fund’s equity portfolio.

Goldman Sachs Asset Management will also provide strategic advice to the pension fund regarding its entire equity portfolio. The pension fund will also obtain improved analytics and reporting on its portfolio as well as enhanced valuation and due diligence on current and potential active managers.

The team of professionals under Goldman Sach’s Alternative Investments & Manager Selection (AIMS) will supplement the CRF global equity team, which is responsible in managing the pension Fund’s nearly $100 billion equity portfolio.

Vicki Fuller, chief investment officer of CRF, emphasized that the strategic partnership was customized to the specific requirements to diversify the pension funds’ holdings given the notable increase in recent years. “Working closely and creatively with GSAM’s team and their resources will extend the reach of the Fund’s global investment team,” said Fuller.

On the other hand, Timothy J. O’Neill and Eric S. Lane, global co-heads of the Investment Management Division at Goldman Sachs described the strategic partnership with the New York pension fund as a landmark assignment. According to them, “We are excited to provide customized access to our broad open-architecture platform, due diligence expertise, and portfolio construction capabilities.”

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