NEWYORK: New York City Comptroller Mark Levine and the trustees of the five New York City retirement systems (Systems) announced an aggregate 13% investment return net of fees across the five Systems for the fiscal year ending June 30, 2026.
The Systems are now valued at $326.3 billion, reflecting strong performance amid a complex investment landscape marked by evolving trade policy, persistent inflation, geopolitical uncertainty, and continued investment in artificial intelligence.
The past fiscal year’s performance surpasses the 7.0% actuarial target and reduces the City’s required pension obligations by approximately $6.3 billion over five fiscal years beginning in FY28.
“Retirees work for decades to earn the financial security that a pension provides and protecting that security requires a disciplined and prudent investment approach. Global 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,” said New York City Comptroller Mark Levine.
The five systems – the New York City Teachers’ Retirement System, Employees’ Retirement System, Police Pension Fund, Fire Pension Fund, and Board of Education Retirement System – posted an annualized average three-year return of 11.1%, five-year return of 6.2%, seven-year return of 8.6% and 10-year return of 8.9%.
The funds maintain a disciplined, diversified, and long-term investment strategy to ensure appropriate risk-adjusted returns. They have 43% invested in Public Equities, 25% in Public Fixed Income (i.e. Government and Corporate Bonds), and about 22% in Private Markets Alternatives (including Private Equity, Real Estate, Alternative Credit, Infrastructure, and Hedge Funds) and cash.
The Systems’ public market investments, which represent more than 74% of the Systems’ assets, generated strong gains for the Systems across both equities and fixed income as the principal contributor to investment performance.
The solid performance of public markets was driven in large part by emerging markets equity investments led by the information technology sector. Fixed income market investments also experienced positive gains, supported by higher starting yields, strong investor demand and historically tight credit spreads.
The Systems’ private markets investment returns supported their long-term investment strategy, providing diversification, downside protection and long-term value creation. Hedge Funds delivered a record program return of 19.2%, while Infrastructure and Alternative Credit also generated strong returns of 9.2% and 7.8%, respectively. Real Estate also saw stronger returns this year due to the strategic shift toward multifamily and industrial properties, and a reduction in office exposure.
“This past year’s 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. I 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,” said Chief Investment Officer Monte Tarbox.
