New Mexico Public Employees Retirement Association, Santa Fe, expects to launch a search as early as February for a manager to run a new low-volatility equity allocation, said Jonathan Grabel, chief investment officer for the $14.5 billion pension fund.
The size of the mandate and the schedule for the RFP will not be determined until next year.
In July, the board approved a transition plan to reduce its global public equity allocation to 43.5% from 55%. The plan calls for pension fund officials to sell part of its current equity allocation, over nine months, to invest primarily in real assets, low-volatility equity strategies and credit.
Separately, the pension fund committed up to $75 million to an emerging private equity manager program being developed by RCP Advisors. The North American lower middle-market buyouts manager plans to raise $150 million to $200 million from a total of three asset owners for the program that will commit to emerging private equity managers. Emerging managers are defined as private equity firms raising a first or second fund of $250 million or less. New Mexico PERA has not invested with RCP Advisors in the past.
The board also extended LaSalle Investment Management’s contract to run a $110 million real estate investment trust portfolio for three months ending March 31. The board at its Thursday meeting extended LaSalle’s contract pending a search launched earlier this month for managers to run a $140 million to $280 million REIT mandate.