New Mexico SIC’s real estate portfolio in six charts

On Tuesday, the $24bn sovereign wealth fund will vote on a subscription to a portfolio management service to aid due diligence and portfolio monitoring across real estate, private equity and real return.

New Mexico State Investment Council, which manages the state’s $24 billion permanent endowment, is considering a subscription to the Burgiss alternative investment database and analytics platform “to enhance due diligence and portfolio monitoring abilities” across its real estate, private equity and real return portfolios.

According to documents prepared for an August 28 meeting, the projected cost of the service is $200,100 per 12-month subscription, which is equivalent to 0.002 percent of New Mexico SIC’s roughly $8.6 billion allocation to those asset classes.

“The support tools will help answer questions about performance, cashflow measures, risk-return comparisons, portfolio exposures and more,” New Mexico SIC staff wrote in the documents. “An additional benefit is the attainment of a systematic solution toward maintaining independent data and reporting, helping to ensure continuity and consistency over time as service providers and personnel evolve.”

The documents note that other prominent sovereign wealth funds investing in private markets, including Alaska Permanent Fund, Abu Dhabi Investment Authority, Canada Pension Plan Investment Board and GIC, use the Burgiss platform, as do pension funds including Public Employees Retirement Association of New Mexico and Employees Retirement System of Texas.

New Mexico SIC manages $2 billion in real estate, or 8.4 percent of its portfolio. The sovereign wealth fund bumped its allocation up from 10 percent to 12 percent of its portfolio in the third quarter of 2017.

Here’s how the overall real estate portfolio shapes up, according to a first-quarter report from consultant Townsend Group:

-With additional reporting by Isobel Markham.