New Mexico State Investment Council, Santa Fe, terminated Seizert Capital Partners, which managed an $88 million active U.S. midcap core equity portfolio, said Charles Wollmann, spokesman for the $24.5 billion endowment, in an email.
The council terminated Seizert due, in part, to the continued reduction of domestic equity assets in favor of private assets "that tend to produce higher levels of income," said a staff report to the council for its meeting this week. The staff and general investment consultant RVK's recommendation to terminate Seizert was also based on founder Gerald L. Seizert's transition to chairman from managing partner in February 2018. David J. Collon succeeded Mr. Seizert as managing partner.
Seizert's assets were transferred to a $1.8 billion Russell 1000 index fund managed by Northern Trust Asset Management.
Separately, the council approved an asset allocation for the new $525 million tax stabilization reserve fund that will be managed by the council, following the recent passage of a state law that shifted management of the fund to the council from the state treasurer's office. The asset allocation is 30% low-duration fixed income, 28% non-core fixed income, 22% U.S. aggregate fixed income and 20% real estate.
The council also hired FactSet, on a subscription basis, for public equity portfolio analytics services. The cost would be partially offset by the cancellation of some Bloomberg terminals.