Public Employees Retirement System (PERA) of New Mexico has approved a $100m (€86.9m) commitment to ITE Management’s open-ended North American transportation fund, marking its second investment into a vehicle.
A board meeting document discloses that the pension fund has recommitted to the ITE Diversified Transportation Asset Fund, following an initial $100m allocation to the vehicle as reported in April 2024.
The ITE fund, which targets railcars, intermodal freight, aviation, airport facilities and barges, aims to deliver a time-weighted net return of 9% to 10% per annum over its lifespan, including a targeted net annual cash yield of 5% to 6%.
The commitment forms part of New Mexico PERA’s 11% target allocation to real assets, a sector where the pension fund was underweight at 8.4% of total plan assets through the first quarter of this year.
To read the latest IPE Real Assets magazine click here.
