Updated with correction
New Mexico Educational Retirement Board, Santa Fe, committed $50 million to private equity fund Lightyear Fund IV and $20 million to real asset fund Conservation Forestry Capital IV, said Bob Jacksha, chief investment officer of the $11.4 billion pension fund in an e-mail.
The board previously committed $40 million to Lightyear Capital's third fund and $25 million to Conservation Forestry Capital's second fund. Conservation Forestry's current fund has a target of $250 million.
Separately, the pension fund returned a net 2.6% for the year ended June 30, below its target of 7.75%, Mr. Jacksha said. The annualized net return for the five years was 6.6% and for the 10 years, 5.8%.
The best performing asset classes for the year were infrastructure, with 13.4%; real estate, 11.8%; and private equity, 9.2%. The worst performing assets classes were developed markets non-U.S. equity, returning -10.9%, and emerging markets equity, returning -8.9%.
“In a very volatile and difficult environment, we are pleased with our results for the year. Our return exceeds most industry peer returns and we accomplished it while taking less risk,” said Mary Lou Cameron, chair of the board, in a written statement. “The results reflect our long-term plan of diversifying our investments and reducing the risk of large losses.”
Added Mr. Jacksha: “In this volatile market, we are pleased to log a positive number.”
