NY pension fund down $44B since last year - The Business Review (Albany):

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The fund is now $109.9 billion—$45 billion smaller than it was onMarch 31, 2008, the end of the state’e previous fiscal year. The fund’z rate of return was -26.3 percent. “It was the worst year in anybody’se memory,” DiNapoli said at a pressx conference. “A loss over the year of 26 percenyt is astartling number.” DiNapoli blamed the decline on the domestic stock markets, which plunged last fall as majo r investment banks closed, filed for bankruptcyh protection or were acquired. Up to 70 perceng of the fund may be invested in either domesticor international. Last the fund was valued at $153.9 By October 2008, the fund was valued at $123.
21 billion, a 20 percent decline. So far this year the fund has droppeed an additional10 percent, or $12 “We weathered the storm better than many of our DiNapoli said. “We’re perpetual investors, and we’ll continue to pursuer sound investments.” The pension fund has 1.04 million members and payingout $6.8 billion in benefitw last year. It remains one of the largestg public pension fund inthe nation, behind a couples in California. The fund’s continuing declinre will not jeopardize any pension DiNapoli said.
It also will not immediately impact the pension contribution rates paid bylocalk governments, since rates are set a couple years ahead of Thus, February 2011 will be the first pension payment from localities with highed contribution rates, as a result of the stocjk market’s shake-up. “It should be no surprise that thedeclind we’re facing will result in contribution rate increases,” DiNapoli This year, DiNapoli is seeking to raise statutoryh limits on how much the pension fund can invesyt in so-called “alternative” investments, such as real private equity and hedge funds. 18.5 percent of the fund is invested inthosde areas.
More investments in alternatived sources could help softehn the blow of any futurew declines indomestic equities, DiNapoli said. “Ovee time, alternative categories have benefitedsthe fund. And thers are some opportunities out there wherde we do have constraintson us,” DiNapoli said. DiNapolo remained optimistic aboutthe long-term health of the pension citing its recovery from the dot-com bust and 11, 2001, terrorist attacks as an The fund bounced back to hit a record-high valude of $154.6 billion in March 2007. “As a pensio fund, we have a perpetual horizon. Our asseft allocation makes the assumption that there will be down DiNapoli said.
“A panic mode or short-term mode over time, that is not the best