New Mexico Educational Retirement Board, Santa Fe, committed $30 million to Five Point Capital Midstream Fund II, a midstream energy fund managed by Five Point Capital Partners, said Bob Jacksha, chief investment officer for the $10.9 billion pension fund, in an e-mail.
This is the pension fund's first investment with the firm.
Separately, the board's investment committee is expected to review its asset allocation and consider alternatives at its June 12 meeting.
The asset mixes under consideration could reduce the pension fund's current 37% equity allocation by between one and four percentage points; leave fixed income at its current 29% or reduce it by between one and five percentage points; increase its 23% target alternatives investments allocation by between two and seven percentage points; and maintain global asset allocation and risk-parity targets at 5% each. The remaining 1% is in cash.
The board will also be asked to extend for six months Robeco's Investment Management $394 million emerging markets equity allocation. The extension requires board approval because it will exceed the pension fund's six-year policy limit before putting services out for bid. Pension fund officials normally launch a search at this time, but they are waiting until the asset allocation review has been completed, Mr. Jacksha said.
Lord Abbett's contract to manage a $135 million small-cap equity portfolio was also extended by two years.