Investment Managers

Adopted Rules: Closed to Comments

Agency:
Effective Date: 
Friday, December 27, 2013
Download Copy of Adopted Rule (.pdf): 

 Statement of Basis and Purpose of Final Rule

 This rule is proposed pursuant to the authority of the Procurement Policy Board under sections 311 and 1043 of the New York City Charter.

 The proposed amendments to the Procurement Policy Board Rules (“Rules”) seek to establish an alternative method of procuring investment management services for the assets of the New York City Retirement Systems and related funds (collectively the “Systems”). The proposed process was tested and arises from a pilot program, established under Section 3-12 of the Rules for Innovative Procurement Methods.

 The goals of the proposed amendments to the Rules are to:

 1) leverage existing financial databases and the analytical resources of the Systems investment consultants to increase competition and expand the universe of managers that may be considered for retention by the Systems;

 2) increase the pool of top tier investment management firms to invest the System’s assets by establishing a process whereby all qualified investment managers are considered for possible contract award;

 3) reduce the time it takes to complete the procurement process by eliminating the need to review and evaluate large numbers of proposals regardless of performance ranking and instead allow the investment staff working on behalf of the Systems to concentrate its evaluation on the highest performers, as determined through industry wide assessments and sophisticated analytics performed by the Systems’ consultants; and

 4) allow the Systems to react more quickly to market opportunities, which should improve performance and reduce market impact on the Systems’ portfolios.

 

Proposed Rule: