New Mexico State Investment Council, Santa Fe, hired Loomis Sayles, PIMCO and Prudential Fixed Income to manage a combined $1.9 billion in active domestic core-plus fixed income, said Charles Wollmann, director of communications for the $15 billion fund.
Council executives have not yet determined the size of each manager's allocation, Mr. Wollmann said.
The hirings represent a move by the council to an externally managed core-plus portfolio from its in-house core portfolio. Funding will come from the $1.9 billion internally managed portfolio. The managers were hired as a result of an RFP launched Nov. 2.
Separately, the council committed $40 million each to private equity funds Ares Special Situations III and Lightyear III, Mr. Wollmann said.
In other action, the council terminated active domestic large-cap equity managers Hester Capital Management, which managed $330 million and Denali Advisors, which ran $240 million, as a result of a strategic restructuring, he said. Where those assets will be placed has not yet been determined.
Also, the council's overall investment portfolio earned 14.5% for 2010. Much of the increase was driven by U.S. equities, which had a 19% return for the year. The New Mexico State Investment Council manages the state's permanent trusts funds.