Investors - AUGUST 2, 2016

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New Mexico increases real assets target to 20%

by Reg Clodfelter

The Public Employees Retirement Association of New Mexico has decided to increase its allocation to real estate and real assets by a combined 8 percent, confirms Kristin Varela, portfolio manager, real returns, with PERA.

The change raises the $14 billion retirement association’s target allocation to real assets by more than $1 billion.

Previously, real estate and real assets were separate allocations in PERA’s portfolio with target allocations of 5 percent and 7 percent, respectively. Now the two will be combined into a single bucket, “real assets,” as part of an overhaul to the retirement association’s portfolio in which it collapsed its eight previous asset classes into four: global equity, risk reduction and mitigation, credit-oriented fixed income, and real assets.

“We believe the newly approved Strategic Asset Allocation better diversifies the total fund by risk contribution and ultimately optimizes portfolio

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