Bloomberg – New York City\u2019s $140 billion retirement system pays Wall Street money managers about $360 million a year, the only one of the 11 biggest U.S. public-worker pensions that refuses to manage any assets internally. Larry Schloss, the city\u2019s chief investment officer, says the practice must end.<\/p>\n
Schloss, 58, points to Ontario\u2019s C$130 billion ($126 billion) teachers\u2019 pension fund, which has returned an average 9.6 percent annually on its investments since 2003 — 1.6 percentage points better than New York\u2019s funds. The Canadian system reaped those gains mostly without paying outside asset managers. Schloss says the same in-house approach could work in New York.<\/p>\n
\u201cI\u2019m not looking for John Paulson,\u201d said Schloss, who earns $224,000 a year, referring to the billionaire hedge-fund manager. \u201cI\u2019m just looking for a VP at MetLife (MET) who makes 500,000 bucks.\u201d<\/p>\n
The 38 staff members in the city comptroller\u2019s Bureau of Asset Management oversee five funds for police, firefighters, teachers, school administrators and civil-service workers. They get paid an average of $100,000 a year, less than the median base salary of a first-year Harvard MBA graduate. They farm out asset management to more than 300 firms.<\/p>\n