New Mexico Educational Retirement Board, Santa Fe, increased its alternatives allocation to 35% from 15% of assets, decreasing equities to 45% from 58% and fixed income to 20% from 27%, said Frank Foy, deputy CIO of the $9.6 billion fund. The increase in alternatives will include new allocations to real assets and global tactical asset allocation of 5% each, increasing expected return and lowering risk, Mr. Foy said. The board has yet to decide the timing of searches or the source of funding.
Separately, the board hired Brandywine to manage $500 million in active domestic large-cap value equities, said CIO Bob Jacksha. The board issued an RFP in August because incumbent ICAPs contract was set to expire at years end. ICAP had rebid. New England Pension Consultants assisted.