New Mexico Public Employees Retirement Association, Santa Fe, committed up to $195 million to alternative investments, said Jonathan Grabel, chief investment officer.
The $14.4 billion pension fund committed up to $75 million to Tillridge Global Agribusiness Partners II. New Mexico PERA has not invested in a Tillridge fund in the past, but it has invested with NGP Energy Capital Management, which is affiliated with Tillridge.
The pension fund board at its Sept. 29 meeting also made an additional commitment of up to $75 million to IFM Global Infrastructure, an open-end infrastructure fund managed by IFM Investors. Pension officials had originally committed up to $25 million to the fund. The board also made an additional commitment of up to $45 million to Charterhouse Capital Partners X, a buyout fund. The pension plan made an initial commitment of up to $70 million in June.
Separately, the board opted to convert the investment structures of managers of its $900 million credit-oriented fixed-income portfolio to fund-of-one structures from commingled funds. The pension fund's credit managers are CVC Credit Partners, Lazard Asset Management, Napier Park Global Capital and Ellington Management Group. The investment strategies will remain the same. Pension fund officials prefer a fund-of-one structure because it reduces fees and is more transparent. The mandates also have tighter guidelines, Mr. Grabel explained.
Also, New Mexico PERA's $500 million 457 plan added the Vanguard Inflation-Protected Securities Fund, managed by Vanguard Group, to replace the Blackrock Inflation Protected Bond Fund, opting for a passive strategy for the plan's investment lineup and set of target-date funds. BlackRock managed $11.5 million in the strategy for the plan.
The 457 plan also added the Columbia High Yield Bond Fund for a new fixed-income allocation within the plan's lifecycle portfolios. Officials anticipate an initial investment of $6.5 million in the Columbia Threadneedle Investments fund.