New Mexico SIC plans $525m of annual commitments under pacing model

The New Mexico State Investment Council (NMSIC) has unveiled a pacing model that estimates some $525 million of annual commitments will be required to continue to push the invested NAV of the real estate portfolio from its current 10.3 percent toward the long-term target allocation of 12 percent.

NMSIC expects deployments will deviate from modeled levels based on market conditions and the availability of attractive new offerings.

At the end of 2021, the core component of the NMSIC real estate portfolio represented 67 percent of the total portfolio against a target of 55 percent. The focus of new commitments in the near term will be toward noncore investments, as the sovereign wealth fund seeks to capitalize on market opportunities. NMSIC believes it will be possible to make this adjustment without new redemptions in the core segment.

In other news, NMSIC noted that the portfolio saw a 32.5 percent net return during a one-year period, exceeding expectations. Perf