New Mexico State Investment Council, Santa Fe, plans to continue trimming its $1.4 billion hedge funds-of-funds and $924.5 million credit and structured portfolios while increasing its private equity commitment pace in 2016, said Charles Wollmann, spokesman for the $20.5 billion endowment plans, in an e-mail.
Under a 2016 investment plan adopted by the council on Wednesday, officials could reduce the number of underlying funds in its hedge funds-of-funds portfolio to 43 from 52. They also plan to conduct a study of the $1.4 billion absolute-return portfolio, “including a review of options for the appropriate number of underlying funds” in the portfolio, the investment plan states.
The council also expects to make five to eight private equity commitments next year with more commitments to existing private equity managers in a move to consolidate investments with a core group of managers, the investment plan notes. But the pace will increase, to between $550 million and $650 million in commitments next year, from $500 million to $600 million per year for the past two years.
Separately, the council renewed the contract of its general investment consultant RVK Inc. In April, the council extended RVK's contract for six months. The new contract term will go for four years from the expiration of the six-month period in September.
