Public Employees Retirement Association of New Mexico Investor Profile

The Public Employees Retirement Association of New Mexico (PERA) is a defined benefit pension plan that provides retirement, disability, and death benefits to eligible public employees of the state and its political subdivisions. With approximately $15.4 billion in assets under management as of June 30, 2023, PERA plays a critical role as the primary retirement system for state and local government employees in New Mexico. Founded in 1947, the organization manages a diversified investment portfolio to ensure the long-term sustainability of pension benefits, adhering to state regulations while emphasizing fiduciary responsibility.

Investment Strategy

PERA invests through a diversified portfolio designed to achieve long-term sustainability of pension benefits. The organization allocates across various asset classes, including equities, fixed income, real estate, and private equity, to balance risk and return. Its investment policy includes targets for different asset classes, reflecting a focus on risk management and fiduciary responsibility. PERA prioritizes long-term growth while ensuring compliance with state regulations, managing investments to support the fund’s overall objectives. This approach underscores the entity’s commitment to maintaining a stable and resilient portfolio for its beneficiaries.

Private Markets Approach

PERA has a history of allocating to alternative investments, particularly private equity, as part of its strategy to diversify assets and achieve higher returns. The organization has committed to various private equity funds, including those from Vista Equity Partners and Ares Management. While specific details on private equity or venture capital allocations are not detailed, these commitments align with PERA’s emphasis on risk management and long-term growth. The alternatives allocation is listed as none percent, indicating that such investments are integrated into the broader portfolio without specified percentages.

How Fund Managers Should Approach

Fund managers seeking allocations from PERA should align their proposals with the organization’s focus on risk management, fiduciary responsibility, and long-term growth. They should demonstrate how their funds contribute to portfolio diversification, particularly in private equity, by highlighting commitments that match PERA’s strategy. Emphasizing adherence to state regulations and balanced risk-return profiles will be important, as PERA prioritizes investments that support sustainable pension benefits.

Frequently Asked Questions

1. What is the primary role of the Public Employees Retirement Association of New Mexico?
   It serves as the primary retirement system for state and local government employees in New Mexico, providing retirement, disability, and death benefits.

2. What asset classes does PERA invest in?
   PERA invests in equities, fixed income, real estate, and private equity as part of its diversified portfolio.

3. Has PERA made commitments to private equity funds?
   PERA has committed to various private equity funds, including those from Vista Equity Partners and Ares Management, as part of its strategy to diversify assets.

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