Cuomo Vetos Bill Permitting Pensions to Invest More Assets in Alternatives

New York Governor Andrew Cuomo vetoed a bill that would have allowed New York state, city and teachers pension funds, with combined assets in excess of $445 billion, to allocate a larger percentage of their investment assets to hedge funds, private equity and international bonds. The bill would have increased the cap on such investments to 30 percent from 25 percent.  In rejecting a proposal that not only passed the state legislature, but also had the strong backing of NYC Controller Scott Stringer, Governor Cuomo cited concerns similar to those raised by CalPERs in September - namely low returns in exchange for the higher fees, risk, and complexity associated with such strategies.  For more information, click here and here.