New Mexico Public Employees Retirement Association, Santa Fe, committed a total of up to $250 million to private markets strategies, the $17.5 billion pension fund reported.
Pension officials committed $100 million to The Kawa Fund, an opportunistic multistrategy credit fund managed by hedge fund manager Kawa Capital Management.
New Mexico PERA also committed $100 million to Trident X, a large cap buyout fund targeting North American and Western European companies, and up to $50 million to NMPERA Turquoise Co-Invest, an evergreen fund-of-one co-investment vehicle, both managed by Stone Point Capital.
Separately, the pension fund returned a net 8.7% for the fiscal year ended June 30, underperforming its 11.6% benchmark. The pension fund had earned a net 4.2%, below its 6.9% benchmark in the prior fiscal year ended June 30, 2023.
The pension fund, however, outperformed its benchmark in the longer periods. It returned a net 3.7% for the three-year period, above its 2.12% benchmark; 6.4% for the five-year period, outperforming is 5.4% benchmark; and 5.8% for the 10-year timeframe, outpacing its 5.5% benchmark. The pension fund’s best performing asset class for the year was global equity with 14.5%, underperforming its 17.5% benchmark.
The pension fund’s target allocation is 46% global equity, 18% real assets, 17% credit, 13% core fixed income and 6% absolute return.
