New Mexico State Investment Council, Santa Fe, approved a new asset allocation for its $4.5 billion Severance Tax Permanent Fund.
Under the new allocation, the fund adds a 5% allocation to in-state venture capital and increases broad international equity by three percentage points to 18%, intermediate-duration fixed income by two percentage points to 18% and real-return investments by two percentage points to 12%, said Charles Wollmann, spokesman for the $19.8 billion council, in an e-mail.
Funding came from cutting broad domestic equity by nine percentage points to 22%, private equity by two percentage points to 8% and diversified hedge funds by one percentage point to 7%. Real estate remains at 10% and cash at zero.
Separately, the council made $160 million in commitments to real-return funds. They are $60 million to Macquarie Asia Infrastructure Fund managed by Macquarie Group, $50 million to FIA Timber Growth and Value Partners Fund managed by Forest Investment Associates and $50 million to NGP Natural Resources XI managed by NGP Energy Capital Management. The council has invested with NGP in the past. The rest are new relationships.
The council also committed $50 million to a private equity fund Bridgepoint Europe V, a buyout fund. The council has invested with Bridgepoint before.
The council also approved policy changes lessening restrictions on possible private equity sales on the secondary markets for holdings older than 10 years.
“Potential packages and valuations are being assessed as the council looks to slim its overall number of core (general partners) over the next several years,” Mr. Wollmann wrote.