Department of Financial Services Report Finds New York State Comptroller-Managed Common Retirement Fund Continues To Pay Exorbitant Fees For Poor Hedge Fund Performance - The Combination Of High Fees And Underperformance Of CRF’s Hedge Fund Investments Have Cost The Pension System $3.8 Billion Over The Last Eight Years - The State Comptroller Has Also Failed To Ensure Transparency Of Costs Related To Private Equity Fund Investments

Department of Financial Services Superintendent Maria T. Vullo today released a report finding that the New York State Common Retirement Fund (CRF), the investment arm of the New York State and Local Employees’ Retirement System and the New York State and Local Police and Fire Retirement System (“collectively, the System”), for years has invested pension system funds in high-cost underperforming hedge funds and nontransparent private equity funds.  The New York State Comptroller is the sole trustee with complete authority and responsibility for the System addressed in the DFS report.  The concerns highlighted in the DFS report are in contrast to actions taken by state pension managers nationwide, which have cut or eliminated similar investments. The report, which covers fiscal years April 1, 2008 through March 31, 2016, is the first in a series of reports to be released by the Department of Financial Services (DFS) regarding the investment activities of pension systems regulated by DFS.