New Mexico Educational Retirement Board, Santa Fe, hired Winslow Capital Management to manage $125 million in a non-U.S. developed markets small-cap equity mandate, said Bob Jacksha, CIO of the $13 billion pension fund, in an email.
The board made the selection following a shortlist search using a list of managers from its general investment consultant, NEPC. Funding for the new mandate comes from the termination of a $294 million MSCI EAFE equity account managed by Fidelity Investments. The remainder of Fidelity's EAFE equity portfolio will be added to the EAFE index portfolio managed by existing manager BlackRock (BLK). New Mexico Educational terminated Fidelity because the pension fund is using a different strategy and moving some assets to small-cap equity.
Separately, the pension fund committed a total of $290 million to four alternative investment funds. Pension fund officials committed $100 million to CBRE Caledon Andromeda Investments III, a real assets co-investment fund managed by New Mexico ERB's infrastructure consultant, CBRE Caledon Capital Management. This is the third CBRE Caledon fund in which the pension fund has invested.
Pension fund officials also committed $100 million to OrbiMed Royalty & Credit Opportunities III, managed by OrbiMed Advisors, The fund will invest in health-care royalty rights. OrbiMed is a new manager for New Mexico ERB.
New Mexico ERB also committed $50 million to Lone Star Real Estate Fund VI, a distressed real estate debt fund managed by Lone Star Funds. Pension fund officials have invested in prior Lone Star funds. The pension fund also committed $40 million to Raine Partners III, a growth equity fund managed by The Raine Group.
In other action, the board authorized a new four-year contract with NEPC.