New Mexico State Investment Council, Santa Fe, is reducing the opportunistic credit allocation of its $4.4 billion fixed-income portfolio to 15% from 21.2%, said Charles Wollmann, spokesman for the $19.8 billion endowment.
The changes were made as part of a stable value structure study conducted in August.
Separately, the council adopted a new asset allocation for its $14 billion Land Grant Permanent Fund that increased fixed income to 18% from 16%, real return to 12% from 10% and private equity to 12% from 10%.
Domestic equity exposure dropped to 28% from 31%, international equity to 13% from 15% and hedge funds to 7% from 8%. Real estate remains at 10%.
The council also adopted another asset allocation for its land grant fund contingent on the passage of a ballot initiative in November that would remove the endowment's current 15% cap on international equity. The contingent allocation differs from the newly adopted allocation in that it would decrease domestic equity to 22%, increase international equity to 18% and increase fixed income to 19%. The other new allocations would be the same.
