By Justin Baer
New York's main public-employee pension hired Goldman Sachs
Group Inc. to select a group of money managers that will invest $2
billion in global stocks.
Under its agreement with the New York State Common Retirement
Fund, Goldman's asset-management arm will also advise the pension
on its other stock investments, the state Comptroller's Office said
Wednesday.
It is the first partnership of its kind for the pension fund,
which oversees $180.7 billion on behalf of more than a million
government employees and retirees. The fund holds about $100
billion in stock investments.
A member of the pension's investment staff said the fund tapped
Goldman to find global equity managers to help lessen the load of
its own internal team, which was already on the hunt for investment
firms that focus on small and midcap U.S. stocks.
Goldman, which had approached the retirement fund about 18
months ago with an analysis of the pension's investments, will
select about seven or eight managers for the new fund of funds, the
pension staffer said. Goldman won't recommend any of its own funds
as part of the relationship. Financial terms of the agreement
weren't disclosed.
The pension has been in discussion with several asset managers,
and may pursue additional partnerships, he said.
Goldman's deal with New York marks the latest pact between large
public pensions and outside money managers, private-equity and
hedge-fund managers.
"Working closely and creatively with GSAM's team and their
resources will extend the reach of the fund's global investment
team," Vicki Fuller, chief investment officer at the retirement
fund, said in a statement.
Goldman has similar partnerships with other public pensions,
including the South Carolina Retirement System and the Alaska
Permanent Fund. Traditionally, pension consultants have taken a
lead role in advising retirement funds on where to invest their
money.
Write to Justin Baer at justin.baer@wsj.com
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