New Mexico Public Employees Retirement Association, Santa Fe, is consolidating two passive equity portfolios into a single roughly $1.1 billion portfolio benchmarked to the Russell 3000, said Joelle Mevi, chief investment officer in an e-mailed response to questions.
The two passive portfolios, both managed by State Street Global Advisors, comprise $1 billion benchmarked to the Russell 1000 and $116 million pegged to the Russell 2500.
The pension fund uses a pool of index managers; New Mexico PERA officials plan to seek bids for the new portfolio from Northern Trust, BlackRock and SSgA.
The board of the $12.86 billion system decided to consolidate the two portfolios — a Russell 1000 and Russell 2500 — at its Feb. 28 meeting. The board also adopted a new policy benchmark — S&P 500 plus 100 basis points — for its domestic large-cap equity portfolio. The previous benchmark was the Russell 3000. The changes will not result in RFPs.
Separately, the board approved an alternative investment commitment plan that calls for the pension plan committing $200 million to real assets, $170 million to private equity, $200 million to real assets and $80 million to real estate this year.