New Mexico Public Employees Retirement Association, Santa Fe, hired BlackRock to manage about $375 million in a passively managed core fixed-income portfolio, according to Kristin Varela, deputy chief investment officer, speaking on a recording of the $15.5 billion pension fund's investment committee meeting.
The investment was made by staff under its delegation of authority. Staff hired BlackRock following an RFI launched because incumbent Manulife's contract for an actively managed core fixed-income portfolio was set to expire March 31. Staff allowed the contract expiration because it determined that core fixed income was not the place to take active risk, Ms. Varela told the committee on May 30.
Separately, staff hired Legal & General Investment Management America to oversee a total fund overlay program and an unconstrained tactical asset allocation portfolio. Staff made the selection following an RFP launched in August. The pension fund has a target of 150 basis points of total fund tracking error, with a band of plus or minus 50 basis points. Legal & General is charged with eliminating intentional active risk and investing the active-risk savings in an unconstrained tactical asset allocation portfolio.
Pension officials also made a follow-on commitment of $50 million to Rockwood Capital Real Estate Partners XI, a domestic value-added real estate fund, said CIO Dominic J. Garcia in an email. New Mexico PERA has been investing with Rockwood since it committed $20 million to Rockwood's eighth fund in 2008. In all, New Mexico PERA has committed a total of about $265 million to multiple Rockwood funds.