New Mexico State Investment Council, Santa Fe, as early as the middle of next week is planning to launch an RFP for multiasset managers, said Charles Wollmann, spokesman for the $56.1 billion sovereign wealth fund.
The council will be searching for one or more active investment managers to manage a multiasset credit strategy for a portion of the credit-plus pool of its $11.5 billion public markets fixed-income portfolio. There is no set total dollar amount for the mandate, but the minimum the council would invest with one manager would be $500 million, Wollmann said. The RFP will be posted on the council’s website.
Separately, the council committed a total of up to $830 million to alternative investments.
The council committed up to $150 million to Frazier Healthcare Growth Buyout Fund XI, middle-market buyout fund focused on the healthcare industry, and up to $150 million in a side-by-side co-investment vehicle, both managed by Frazier Healthcare Partners.
The council also committed up to $150 million each to Hull Street Energy Partners III, which invests in middle-market power companies including renewable energy developers and other renewable service provider companies, and Pemberton Strategic Credit Fund IV, a global private debt fund managed by Pemberton Asset Management.
Council officials also committed up to $100 million to Veritas Capital Fund IX, a middle-market buyout fund that invests in technology companies, and $100 million in a side-by-side co-investment vehicle, both managed by Veritas Capital Fund Management.
Finally, the council committed up to $30 million to Outlander 3 Magellan, an early stage venture capital fund managed by Outlander VC that invests in technology companies in the software and software-enabled hardware sectors. The investment is being made for the sovereign wealth fund’s New Mexico private equity program, and Outlander executives have committed to investing in or helping to secure investing by others of at least $30 million to be invested in New Mexico companies.
In other action, the council renewed its contract with Parametric Portfolio Associates, its rebalancing/equity overlay manager. Parametric’s contract expired June 30, and the council opted to enter into a new contract with the firm under the same basic terms as the prior agreement. Parametric has been providing portfolio management services to the council for nearly a decade.
The council also reported returns for its fiscal year ended June 30. The sovereign wealth fund returned 8% for the year ended June 30, compared with 9.4% for the prior 12-month period. It earned 4% for the three years ended June 30, 6.9% for five years and 7% for 10 years. It’s largest pool of capital, the $31 billion Land Grant Permanent Fund earned 9% for the fiscal year, besting its 8.3% benchmark.
The total fund’s best-performing asset class in the fiscal year was U.S. public equity at 23.7%, outperforming its benchmark of 23.1%. Its worst-performing asset class was real estate at -8.8%, which nevertheless outperformed its -12% benchmark.
