New Mexico Public Employees' Retirement Association, Santa Fe, is searching for an undetermined number of money managers to run passive U.S. equities, passive international equities and enhanced U.S. equities.
The fund already has $3 billion in domestic stock index funds, run by SSgA and Northern Trust, said Robert Gish, CIO of the $9.3 billion fund. They have been invited to rebid. He said trustees allocated $300 million to a new enhanced U.S. equity strategy. but the board hasn't set the allocation to passive international stocks, another new area. The changes are the result of a rebalancing.
Separately, the board hired Western Asset Management to run a new core-plus mandate, the size of which has not been determined. Funding will come from terminating fixed-income manager Reams Asset, which runs about $550 million. Fiduciary Trust International was re-hired for a core-plus bond portfolio. The firm currently manages $850 million, but trustees haven't determined if the amount will change. Also, Smith Breeden Associates was hired for a new core fixed-income portfolio of an undetermined size; the firm already manages $450 million in mortgage-backed securities for the fund. And Loomis Sayles was hired to run $150 million in high-yield bonds.