Public Employees Retirement Association (PERA) of New Mexico has hired PIMCO to run a $300m (€249m) liquid real assets mandate, and chosen Nuveen Asset Management as a standby manager.
The mandate equates to 2% of New Mexico PERA’s total assets, according to a board meeting document, and will be used as a funding vehicle for future commitments to liquid real assets over the next three to five years.
New Mexico PERA told IPE Real Estate that PIMCO would aim to provide diversified exposure to a broad set of inflation-linked liquid assets, including real estate investment trusts, natural resources and infrastructure.
It said it would invest globally and aim for a total net return of 6% to 8%, with standard deviation of 12% to 15%.
New Mexico PERA is giving PIMCO full investment discretion within agreed investment guidelines, but as yet no specific benchmark has been set.
“The mandate’s benchmark will be determined upon completion of the investment guidelines, to ensure an appropriate alignment of objectives between the product and its benchmark,” the pension fund told IPE Real Estate.
New Mexico PERA issued a request for proposals in May to manage a diversified portfolio of liquid securities backed by or related to tangible real assets, alongside its consultant Albourne.