New Mexico PERA to look for currency hedging manager

Pension fund taps 2 for REIT allocations

New Mexico Public Employees Retirement Association, Santa Fe, plans to launch an RFP on March 1 for passive currency hedging services for its $1.97 billion international public equity portfolio, said Jonathan Grabel, chief investment officer for the $14.5 billion pension fund.

There is no incumbent. Pension fund officials expect responses to be due April 3 with a selection in the spring. The RFP will be posted on the pension fund’s website.

Separately, the board at its Feb. 23 meeting invested $140 million each with Dimensional Fund Advisors and Security Capital Research & Management for real estate investment trust allocations. An RFP was launched in November.

Funding comes in part from LaSalle Investment Management, which managed a $105 million portfolio, Morgan Stanley (MS) which ran a $93 million portfolio and BlackRock (BLK), which managed $46 million. All three had been invited to rebid. The remainder of the funding for the new allocations is from cash.

The board also committed $75 million to Rockpoint Growth and Income Real Estate Fund II, a value-added real estate fund managed by Rockpoint Group. This is a new relationship.