New York To Look Into Pension Consultants

Nov 7 2013 | 11:27am ET

New York State has launched an investigation into the advisory firms that help its pension funds invest some $350 billion in retirement funds.

Benjamin Lawsky, the state's financial services superintendent, has issued subpoenas to about 20 such companies in an effort to determine whether there are any conflicts of interest. While New York's pensions are well-funded, Lawsky said the difficulties suffered by Detroit's municipal pension fund have him concerned.

"The recent financial difficulties in Detroit serve as a stern wake-up call, demonstrating why strong oversight of New York's public pension funds is so important," Lawsky wrote to trustees of the state's public pension funds, including those overseeing New York City's pension funds. He plans to investigate "controls to prevent conflicts of interest, as well as the use of consultants, advisory councils and other similar structures."

Those trustees, including State Comptroller Thomas DiNapoli, told The New York Times that they are cooperating with the investigation.

Lawsky is seeking information about pitches, compensation practices, relationships with  money managers and methods of tracking private investments from the likes of Callan Associates, Russell Investments, Towers Watson and Wilshire Associates, among other, smaller firms.

New York's pensions are no strangers to scandal: DiNapoli's predecessor, Alan Hevesi, was forced to resign and eventually went to prison over a pay-to-play scandal at the state's largest hedge fund, one that ensnared several major alternative investment firms.


In Depth

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.