The New Mexico Public Employees' Retirement Association, Santa Fe, expects to decide at its Aug. 31 meeting whether to allocate 2.5% of plan assets to real estate and 2.5% to real returns, said Robert Gish, CIO. The $11.4 billion association's investment committee made the recommendation Tuesday. Funding would come from the fund's $3.5 billion fixed-income portfolio, although no specifics have been determined. The investment committee also recommended an initial commitment of $35 million to value-added real estate, $35 million to opportunistic real estate and $25 million to REITs in fiscal year 2007, ending June 30, Mr. Gish said. For real assets, the panel recommended an initial investment of $50 million in commodities and TIPS and $45 million in energy-related investments.
Also, the committee this fall will recommend investing between $500 million and $700 million in a passive MSCI ACWI ex-U.S. account to be managed by SSgA.
Separately, fund officials extended the commission recapture contracts of Abel/Noser, Lynch Jones & Ryan and Russell for two years each, said Mr. Gish.