Maine Public Employee Retirement System Commits to Two Funds

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.