The New Mexico State Investment Council (NMSIC) oversees and manages investments for New Mexico’s permanent funds, including the land grant permanent fund. With over $26 billion in assets under management as of 2022, the NMSIC is responsible for investing to maximize long-term returns while preserving the real value of the permanent funds. This article will provide an overview of the NMSIC, its history, governance, asset allocation, performance, and other key details.
Background and history of the NMSIC
The NMSIC was created in 1958 through a state constitutional amendment to manage and invest the assets of New Mexico’s permanent funds more prudently and profitably. It started with around $100 million in assets under management in the late 1950s and has grown to over $26 billion today.
NMSIC governance and leadership
The NMSIC is an independent agency consisting of 11 members, including both political appointees and financial professionals. The governor serves as the chair. The chief investment officer oversees day-to-day operations and investment strategy.
NMSIC asset allocation and investment strategy
The NMSIC utilizes a diversified asset allocation strategy across various asset classes like public equities, fixed income, real estate, private equity, hedge funds and others. The specific percentage allocations across these asset classes aim to optimize risk-adjusted returns over the long run.
NMSIC performance and benchmarks
The NMSIC has generated strong long-term performance that meets or beats its investment policy benchmarks. For example, over the 10 years ending June 30, 2022, the NMSIC returned 9.5% annualized, outperforming its 6.5% benchmark target return.
As the fiduciary manager of New Mexico’s multi-billion dollar permanent funds, the NMSIC utilizes experienced leadership, governance and prudent investment practices aimed at preserving fund value and maximizing risk-adjusted returns over the long run.