New Mexico SIC sets RFP for beta overlay

New Mexico State Investment Council, Santa Fe, launched an RFP for a beta overlay manager, said Charles Wollmann spokesman for the $17.3 billion endowment.

The council is looking for a beta overlay manager that can reasonably replicate the performance of broad domestic equities, international equities (hedged and unhedged) and broad fixed-income exposure both domestic and international. At a minimum, respondents should be able to manage a portfolio consisting of exchange-traded futures and currency forwards, the RFP states.

Funding will come from ongoing transition toward long-term targets, not from a specific allocation being swapped, Mr. Wollmann said in an e-mail.

Responses to the RFP are due Sept. 27. Finalists are scheduled to be selected by the council at its Nov. 26 meeting. The RFP is available on the endowment's website.

General investment consultant R.V. Kuhns & Associates is assisting.

Separately, at the council's Aug. 27 meeting, it approved up to $450 million total to existing fixed-income managers, Loomis Sayles and Pacific Investment Management Co. in a fixed-income pre-called capital strategy. The investments “will serve as a bridge as SIC transitions toward higher long-term targets in private investment markets, which will lessen the council's overall exposure to equities.”

The council also will commit an additional $50 million for a total of $100 million to Waterfall Asset Management's Eden Fund, a real-return fund.