New Mexico PERA scouting for emerging markets equity, custom real assets managers

New Mexico Public Employees Retirement Association, Santa Fe, is searching for active emerging markets equity and real assets managers, said Jude Perez, interim chief investment officer, in an email.

The $14.8 billion pension fund issued two RFPs due to its policy to put services up for bid for any portfolio that has been under contract for eight years, Mr. Perez said.

The first RFP is for one or more active emerging markets equity managers to run between $150 million and $200 million each. Current managers Aberdeen Asset Management and Parametric Portfolio Advisors, which ran $175 million and $180 million, respectively, as of March 31, are invited to rebid.

Proposals are due at 5 p.m. MDT on June 12. A decision is expected sometime in September.

The RFP is available on the pension fund’s website.

The second RFP is for one or more managers to run “customized and highly diversified portfolio of liquid securities backed by or related to tangible real assets, with the purpose of assisting PERA in meeting its strategic asset allocation targets and funding illiquid real asset and illiquid real estate investments, over the next 24-36 months,” Mr. Perez wrote.

Mr. Perez said the “estimated mandate size” will be between $280 million and $300 million and will be funded from other overweight allocations. The real assets target is 20%, and the actual allocation as of March 31 was 11.5%.

He said qualified proposals “will display demonstrated skill in the composition and management of liquid real asset investing, including but not limited to” real estate investment trusts, master limited partnerships, infrastructure equity, natural resource equity, commodities, metals and short-dated Treasury inflation-protected securities.

Proposals are due at 5 p.m. MDT on June 5. A decision is expected before Aug. 31.