By David G. Barry
The Maine Public
Employee Retirement System (MainePERS) has approved commitments to two
funds. The $18.6 billion fund’s board committed up to $30 million to Sprott
Private Resource Lending’s third fund and up to $100 million to Hudson
Bay Master Fund.
Sprott is a direct lender, while Hudson Bay is a hedge fund.
MainePERS is in the process of implementing a series of asset allocation
changes which were approved in May. The system reduced its target allocation to
traditional credit from 7.5% to 5% and private equity from 15% to 12.5%. It
also increased U.S. government securities from 7.5% to 10% and alternative
credit from 7.5% to 10%.
Chief Investment Officer James Bennett
told the board that the investment team expects to complete the rebalancing of
public assets in August but that it will take “several years” for private
equity and alternative credit to reach target. Currently, MainePERS has 20% of
its assets in private equity and 6.9% in alternative credit.