ALBUQUERQUE, N.M. — The state’s Land Grant Permanent Fund grew by 11.3 percent for the investment year ending in March, pushing New Mexico’s total permanent funds to a record $21.7 billion, State Investment Officer Steve Moise said in a public speech in Albuquerque Tuesday morning.
That puts New Mexico third in the nation after Alaska and Texas in total fund balances compared with the 11 states that have sovereign wealth funds, Moise said at a business breakfast organized by the University of New Mexico’s Anderson School of Management.
As a result, the SIC will distribute nearly $900 million to the state for the next fiscal year that starts in July to help finance public schools, universities, hospitals and other agencies. That’s up from about $300 million distributed 20 years ago.
“These funds are working for you,” Moise told event participants. “…By 2021, we expect the funds to produce about $1 billion per year for New Mexico residents and tax payers.”
Prudent management and investment policies have put the fund on a healthy growth trajectory, Moise said. That includes major restructuring since 2010 in how the SIC makes decisions, following pay-to-play scandals under former administrators, who concentrated decision-making authority in their own hands and allowed placement agents paid by private funds to steer SIC money to those funds.
Today, all decisions are made by the entire 11-member council based on apolitical considerations focused on the best returns, with thorough vetting of all fund managers doing business with the SIC, Moise said.
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