New Mexico Educational Retirement Board, Santa Fe, invested or committed a total of $290 million to three managers, said Bob Jacksha, chief investment officer for the $11.9 billion pension fund, in an e-mail.
The pension fund hired Prudential Financial to manage $115 million in an emerging markets debt blended local/hard currency allocation. The pension fund launched an RFP in June. Funding comes in part from Pictet Asset Management’s $93.6 million active emerging markets debt portfolio.
New Mexico Educational officials also committed $100 million to Gramercy Distressed Opportunity Fund III. This is the pension fund’s third commitment to a Gramercy Funds Management fund. It also committed $75 million to private equity fund Warburg Pincus Private Equity XII. The pension fund is an investor in Warburg Pincus Private Equity XI.
Separately, the pension fund rehired incumbent Caledon Capital Management as its infrastructure consultant following an invitation-only search. The pension fund has a $164 million infrastructure portfolio, with a target of about $375 million.
Also, New Mexico Educational reported a 0.5% net return for the year ended Sept. 30, compared to -0.9% for its policy benchmark.
“For the last 12 months, it was a time for private assets and not the time for (emerging markets) assets,” Mr. Jacksha wrote.
The best-performing asset class was real estate at 17.2% for the year ended Sept. 30, closely followed by private equity at 16.8%. Those asset classes lag a quarter, Mr. Jacksha said.
The worst-performing asset class was emerging markets equities, with -17%, followed by emerging markets debt at -11%.