Steven Meier plans to take another role
Steven Meier, NYC’s chief investment officer since August 2022, is leaving his role Nov. 7 for a new investment management opportunity, yet unnamed.
He stepped into the NYC role while the city faced significant COVID challenges, yet over the past three years, he has posted a 9.4% return (exceeding the target of 7% set by the state legislature). During his tenure, the NYC system has grown to more than $300B, becoming the third-largest public pension fund in the United States.
The NYC comptroller’s office released the news in a press release, in which Comptroller Brad Lander noted his gratitude for Meier’s “strong and steady leadership during times of economic volatility.”
“He has been a trusted partner during my tenure as comptroller, provided invaluable counsel to our trustees and investment partners, and served as a mentor and leader for our investment staff,” said Lander. “Most importantly, he has delivered great returns for our funds and put our funds in strong shape for the future.”
After Meier’s departure, the Bureau of Asset Management will be led by executive deputy comptroller for budget and finance Francesco Brindisi, formerly the chief economist of the NYC Economic Development Corp., and senior deputy director at the New York City Mayor’s Office of Management & Budget. Brindisi currently oversees the Bureaus of Budget, Public Finance and Accountancy and will liaise with the pension trustees to ensure a smooth transition, noted the press release. A new CIO is expected to be appointed by the next NYC Comptroller, who will be elected Nov. 4.
The comptroller’s office noted a series of accomplishments under Meier’s tenure:
Under Meier’s leadership, the Bureau of Asset Management has:
- Conducted a Strategic Asset Allocation review leading to a diversified investment portfolio that balances both risk and return across the funds’ asset classes, leveraging increased flexibility following the passage of new basket clause legislation.
- Incorporated non-siloed thinking and total portfolio analytics throughout the funds’ investment strategy, increasing collaboration across public asset classes to improve long-term performance.
- Strengthened the office’s responsible investment work, including ESG integration, corporate governance, and diverse and emerging manager strategy, in alignment with each fund’s investment policies.
- Instituted best-practice procedures and protocols for cash management to ensure an institutional investor-quality due diligence and credit review process for our short-term trading desk.
- Developed new quantitative tools to increase analytical rigor in public market portfolio construction.
- Restructured the funds’ private equity holdings and partnerships, completing a landmark $5B private equity secondary sale across the funds.
- Reduced fees paid to external asset managers, including through increased co-investment.
- Deepened engagement with the funds’ general and specialty consultants.
- Improved the office’s ability to retain top talent and positioned it as a great place to work for current and prospective financial services professionals who value public service.
- Increased engagement with funds’ trustees through an enhanced service and support model that includes weekly thought leadership programming.
- Ensured that the portfolios are well-positioned to achieve long-term performance objectives.
Those close to the matter have noted that the NYC pension CIO role is quite different from others in that each of the five pensions within the system hold separate meeting each month. Each meeting takes preparation time on the part of the investment team, and skeptics say meeting prep has become a consuming and onerous part of the job. Another former NYC CIO Scott Evans, who held Meier’s role from 2014 to 2018, had worked to consolidate the five pensions into fewer meetings, but after his departure in 2018, each pension system gradually began to meet separately again.
Meier is well-respected among his chief investment officer peers for his work as a interim and deputy CIO in Connecticut, where his work also drove results, and his strong private sector background that included EVP and CIO roles at State Street in Fixed Income, Currency and Cash, Senior Trader and Global head of Fixed income at Credit Suisse among other roles.
“It has been a privilege, and the honor of a lifetime, to serve in this role – my most rewarding yet,” said Chief Investment Officer Steven Meier, CFA, FRM in the press release. “For more than three years, alongside the talented and mission-driven investment staff of the Bureau of Asset Management, and in lock step with our trustees, we have worked tirelessly to enhance the value of our full investment portfolio. I am proud of the progress we have made in these efforts, and I am grateful to Comptroller Lander for the opportunity to serve New York City in this role at such a pivotal moment.”
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