The Terra Maria Emerging Manager Program* (the “Program”) is a vital component of the Maryland State Retirement and Pension System (“SRPS” or the “System”). In 2024, the Board adopted an Emerging Manager Policy as part of the Investment Policy Manual and approved an initiative to expand and strengthen the Program by dedicating additional resources and support. 

The objective of the Program is to enhance the risk and return profile of the System by identifying investment managers that exhibit skill and improve outcomes. Emerging managers are often overlooked when competing for assignments from large investors using more traditional search processes. By partnering with uniquely talented emerging managers, the Program seeks to add attractive risk-adjusted returns to the overall pension fund. Additionally, the Program strives to identify the next generation of managers and partners with them in support of their growth trajectory and development. 

Since its first allocation in 2007, the Program has grown substantially to a market value of $5.4 billion representing 7.8% of the total plan assets (9.2% of total externally-managed assets) as of December 2024. After initially focusing on public market bond and stock managers, the Program began investing in private market emerging managers in 2011. To better align with the System’s strategic asset allocation, the Program underwent a significant restructuring in 2016-2017 to focus managers on the specific public sub-asset classes. 

*SRPS has committed $250 million exclusively for infrastructure and natural resources under the Terra Maria program, of which $50 million is dedicated to Maryland based investments. Emerging managers in other asset classes are funded based on their investment merits.