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The midtown Manhattan skyline is pictured from the top of the Empire State Building in New York City on March 3, 2026. CHARLY TRIBALLEAU / AFP via Getty Images
New York City’s $127 billion pension funds are seeking bids to potentially replace BlackRock and State Street as their asset managers.
On June 12, Comptroller Mark Levine and trustees of the city’s five public pension systems announced they were looking for new fund managers to manage the city’s pension money, most of which is invested in “passive investments” like index funds. BlackRock, the world’s largest asset manager, and State Street are currently in charge of these funds.
A press release issued by the comptroller states that among the factors they will consider, in addition to index fund experience, are expertise in “ESG factors and limits on carbon.” Levine’s predecessor, Brad Lander, criticized these asset managers last year over what he said was their unwillingness to use their corporate proxy votes to push companies to implement anti-fossil-fuel policies.
In November 2025, Lander stated he was “calling on my fellow trustees to move our money away from the three asset managers—BlackRock, Fidelity, and PanAgora—who fail to address climate risk with the seriousness we expect.”
Levine succeeded Lander in January, after Lander stepped down to run for mayor. Upon taking office, Levine said he was “deep in review” of Lander’s recommendations regarding removing BlackRock and Fidelity.
City officials, however, said this week’s announcement has no connection to Lander’s recommendations and that this is an open bid due to the index managers’ contracts expiring.
“All asset managers who meet the minimum requirements as stated in the notice of search are welcome to submit information by the deadline of July 15 including BlackRock,” Shaquana J. DeVissiere, press secretary for the New York City Comptroller’s Office, told The Epoch Times. “This notice is not a response to former Comptroller Lander’s recommendation of action for BlackRock and Fidelity, and is not a recommendation to replace BlackRock.”
BlackRock, Vanguard, and State Street, known as the “big three,” are the world’s largest asset managers and dominate the market for index funds. These three firms together vote around 25 percent of the shares in all S&P 500 companies, a Boston University study by legal analyst Michael Gersho reported.
While these fund managers, like many others, had once been supporters of the environmental, social, and governance (ESG) movement, joining organizations like the U.N.-sponsored Net Zero Asset Managers initiative (NZAM), they have since pulled back from activism on that front. In January 2025, BlackRock quit NZAM and became less inclined to vote in favor of ESG proposals.
“As ESG principles have come under increased scrutiny in recent years, BlackRock has reduced its support for ESG related shareholder proposals (in 2023 the firm supported a mere 7 percent of proposals concerning climate and natural capital, down from 22 percent in 2022 and 47 percent in 2021),” Gersho stated.
In recent years, many fund managers have faced pressure from conservative state attorneys general and state treasurers, who charge that they were prioritizing environmental goals over their fiduciary duty to maximize returns for their investors, including state pension funds. New York City pension fund managers were sued in 2023 for divesting from fossil fuel companies, although that case was ultimately dismissed by a state court that ruled that, because New York’s pensions were defined benefit plans, they failed to show harm.
While the shift by some asset managers away from activism has received support from conservatives, many progressives have been highly critical of the move. It remains to be seen, however, whether New York City will remove BlackRock and State Street as managers of its pension funds.
“Upon [the comptroller’s] recommendation of asset manager(s) that would meet their investment needs, each of our five boards will make the final selection,” DeVissiere said.
Correction: An earlier version of this article misstated the asset managers that may be replaced. The Epoch Times regrets the error.
