New York City Retirement System – Interview


cate a higher level of assets to private mar- kets. We have a 25% cap, but with the new legislation, that could increase to 35%. This permits us to make investments in a more complex landscape and allow for better diversification of investments between public and private markets.


Could you tell me about your commitment to invest with minority and women-owned investment (MWBE) firms? Diversity, equity and inclusion are impor- tant. Our five plans have $16.8bn (£13.8bn) invested with or committed to MWBE managers. Those investments amount to 11.6% of US-based actively managed assets, or around 7% of total assets under management.


Since you took over in the summer of 2022, what has been your biggest priority? Learning the processes, getting to know and understand the portfolios and meet- ing the wide range of people I needed to meet.


How did you view the liquidity issues faced by UK defined benefit schemes using liabil- ity-driven investing strategies? It was interesting what happened in the UK. It was based on [Liz Truss’] ill-con- ceived policy of using taxes and increas- ing spending, which had a negative impact on the gilt market.


One of the lessons I take away from that is liquidity is a precious commodity. One that can be here today, gone tomorrow. As an institutional investor, we need to be aware of that, so we are never in a posi-


tion of being forced sellers of a less than liquid asset.


The concern that we all have as investors is that the gilt market is highly liquid and stable, but for a short period of time until the Bank of England stepped in it wasn’t. That was a challenge.


What has been the biggest challenge you have faced during your career as a profes- sional investor?


There was a time during the global finan- cial crisis at State Street where we were tested. We had investment committee meetings every day to go through the $2.3trn (£1.9trn) in assets we had in our portfolios.


The lessons I learned from that period I have carried with me: of being thought- ful, consistent, disciplined and risk aware. Realising the true risks embedded in asset classes from that time helped to sharpen my skills.


So that experience has been crucial in shaping your outlook?


I have been in the industry for 38 years, so I had a great deal of capital market expo- sure before moving into asset manage- ment. One of the unique things about my career is that beyond the investment side, there’s a lot of engagement in this posi- tion, which is big part of the fun. The trustees, the different personalities, the different way of looking at risk and making decisions and getting round to see all the five plans is a great deal of fun. It has also been an incredible learn- ing curve. You never stop learning. It


Climate change is going to be expensive.


STEVEN MEIER’S CV


August 2022 – present Chief investment officer The New York City Retirement System


August 2021 – August 2022 Board trustee Six Circles Trust (JP Morgan)


January 2021 – September 2021 Interim chief investment officer State of Connecticut Office of the Treasurer Pension and Trust Fund Management


December 2019 – January 2021 Assistant treasurer/senior principal investment officer State of Connecticut Office of the Treasurer


June 2013 – April 2017 Chief investment officer, global fixed income, currency and cash State Street Global Advisors


September 2003 – June 2013 Chief investment officer, global cash management


State Street Global Advisors


September 1999 – August 2003 Head of fixed income sales and trading State Street Global Markets


March 1997 – February 1999 Global head of fixed income and money market electronic trading Senior trader–Global Financing Group Credit Suisse First Boston


has been a real thrill and privilege to sit in this seat.


Is there one important lesson you carry with you from the past 38 years? I would say the importance of liquidity – if you get that wrong it is significant. Sec- ond would be counterparty credit exposure. Coming through the global financial cri- sis you saw all manner of what had once been investment-grade entities in severe distress. Dealing with that was a real challenge.


Issue 120 | February 2023 | portfolio institutional | 17


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