New Mexico Educational Retirement Board, Santa Fe, committed $50 million to infrastructure fund ISQ Global Infrastructure Fund and $30 million to Southern Pastures, which invests in New Zealand dairy farms, said Bob Jacksha, chief investment officer for the $11.3 billion pension fund, in an e-mail.
The ISQ Global Infrastructure Fund, managed by I Squared Capital, will invest primarily in stable, income-producing infrastructure projects, with only limited investment in new projects.
Separately, the board increased its commitment to Five Point Capital Midstream Fund II to $50 million from $30 million. The commitment was increased due to a new natural resources allocation adopted in June; the overall real assets allocation was increased to 8% from 7%.
The board also extended the contracts of three core fixed-income managers until Feb. 28, 2015. They are Western Asset Management Co., which manages $339 million; Pyramis Global Advisors, $371 million; and Neuberger Berman Group, $362 million. The board plans to transition the core fixed-income assets to internal management, after the managers' contracts expire, Mr. Jacksha said.
Pension fund officials are currently establishing the infrastructure to do so, including hiring people.
Also, the pension fund returned 14.5% for the fiscal year ended June 30, surpassing its target rate of return of 7.75%. The best performing asset class was domestic small-cap equities at 27.5%.