Overview of Fiscal Year 2026
The New York City Comptroller serves as the investment advisor, custodian, and trustee for the city’s five public retirement systems, managing over $325 billion for more than 750,000 public servants.
Key Financial Results
- FY 2026 Performance:
- Aggregate Return: 13.0% net of fees, surpassing the 7.0% actuarial target.
- Impact on Pension Obligations: Savings of approximately $6.3 billion over five years starting FY 2028.
These results are attributed to a disciplined, diversified, long-term investment strategy, which allows the systems to meet their obligations while adapting to a complex investment landscape.
NYC Combined Systems Annualized Returns
| Duration | Return |
|---|---|
| 1 Year | 13.0% |
| 3 Year | 11.1% |
| 5 Year | 6.2% |
| 7 Year | 8.6% |
| 10 Year | 8.9% |
Assets Under Management (AUM)
AUM: $326.3 billion
Contribution to Return
| Investment Strategy | AUM ($ Billions) | AUM % of Total | FY 2026 Return | Contribution to FY 2026 Return |
|---|---|---|---|---|
| U.S. Equity | 89.5 | 27.4% | 22.9% | 5.9% |
| Developed ex-U.S. Equity | 36.0 | 11.0% | 15.6% | 1.8% |
| Emerging Markets | 15.2 | 4.6% | 42.0% | 1.7% |
| Core Fixed Income | 80.3 | 24.6% | 3.9% | 1.0% |
| High Yield | 20.7 | 6.4% | 5.8% | 0.4% |
| Convertible Bonds | 2.3 | 0.7% | 12.7% | 0.1% |
| Private Equity | 28.3 | 8.7% | 7.2% | 0.6% |
| Private Real Estate | 20.6 | 6.3% | 4.5% | 0.3% |
| Infrastructure | 10.6 | 3.3% | 9.2% | 0.3% |
| Alternative Credit | 16.8 | 5.2% | 7.8% | 0.4% |
| Hedge Funds | 5.0 | 1.5% | 19.2% | 0.3% |
| Cash/Equivalents | 1.0 | 0.3% | 5.0% | 0.0% |
Market Conditions
The fiscal year was marked by resilient financial markets facing challenges such as trade policy shifts, inflation, and geopolitical uncertainties. Despite these obstacles, markets performed well, particularly in technology:
- Public Equity:
- U.S. equities yielded 22.9%; emerging markets saw returns of approximately 42%.
- Public Fixed Income:
- Core fixed income returned 3.9%, and high yield returned 5.8%.
Private Market Highlights
Private markets remained a vital aspect of long-term strategy:
- Private Equity: 7.2% return net of fees; strong long-term value creation with a core portfolio IRR of 15.5%.
- Real Estate: 4.5% return with strategic repositioning enhancing returns.
- Infrastructure: 9.2% return through disciplined investment strategies.
- Alternative Credit: 7.8% return amid market volatility.
Conclusion
FY 2026 underscored the importance of disciplined investment strategies and governance, yielding robust performance in a dynamic market environment. The Comptroller remains committed to ensuring retirement security for beneficiaries through prudent investments and governance.
Disclosures
Past performance does not guarantee future results. The information here is based on current data and is not to be taken as investment advice.
