New Mexico State Investment Council, Santa Fe, launched an RFP for a manager to run up to $300 million in an actively managed unconstrained fixed-income portfolio, said Charles Wollmann, spokesman for the $19.8 billion endowment in an e-mail.
The manager would advise the council on the most attractive segments of the fixed-income markets and manage an opportunistic portfolio in those investments, the RFP states. The overall portfolio benchmark will be three-month LIBOR + 2.5%, but individual managers and/or strategies might have other benchmarks determined to be more appropriate for their approach, the RFP said.
Funding will primarily come from cash. RVK, the council's general investment consultant, assisted.
Responses are due Sept. 26 with the council expected to make a selection on Nov. 25. The RFP is on the endowment's website.
Separately, the council expects to launch an invitation to bid for a passive Barclays Capital U.S. Aggregate index manager in the coming weeks. The manager would eventually manage 25% of the endowments' fixed-income portfolio, which makes up 22.4% of total assets, or about $4.4 billion.
The council also committed $75 million to the Ares European Real Estate Fund IV, which is managed by Ares Management. The council has invested with the manager in the past.