(September 6, 2012) – Ranji Nagaswami, the first-ever chief investment advisor for New York City’s pensions, has resigned to join Bridgewater Associates, Bloomberg News initially reported.
Nagaswami has been replaced by Janice Emery, a 20-plus-year veteran of institutional investing who has held positions at US Airways and the Pension Benefit Guaranty Corporation, among others. Most recently, Emery served as chief investment officer of Pinnacle West Capital Corporation, based in Phoenix, Arizona.
Emery’s new position, chief investment advisor for New York City’s five pension systems, has existed for only two years. Mayor Michael Bloomberg appointed Nagaswami in August 2010, with the intention of consolidating the funds under one collective management team.
At the time of her appointment, Deputy Mayor for Economic Development Robert Steel said, “Ranji will have the responsibility to help guide the more than $100 billion in New York City’s retirement systems, and her experience with large-scale asset management and understanding of global capital markets make her perfectly-suited for the new role.” Steel continued, “As pension costs continue to swallow a disproportionally large amount of the City’s budget, Ranji will lead our efforts to try to increase investment returns and think about new ways to manage the funds’ portfolios.”
New York City’s pensions, however, stuck to their old ways. The ambitious and long-awaited restructuring never materialized: New York City unions, viewing the reform as an assault on their ability to oversee investment decisions, successfully pressured state lawmakers to withhold their required approval. In March 2011, aiCIO took an in-depth look at the proposed reform and analyzed the New York City pension system.
The Mayor’s office did not respond to requests for comment.
Nagaswami told Bloomberg News she will be taking on a “senior strategist role” at the Westport, Connecticut-based hedge fund. Bridgewater, the largest hedge fund in the world, in fact manages more money ($130 billion) than all five New York City pension funds combined ($123 billion). And by moving from the public sector to private industry, her paycheck will doubtlessly reflect a larger slice of the substantial assets she’s managing. (Also, a shiny new office.) In 2011, Nagaswami earned a salary of $175,000 as a city employee in the Department of Finance, according to public records.