New Mexico Land Grant Permanent Fund returns 18.1%
By Arleen Jacobius | November 13, 2012 2:55 pm
New Mexico State Investment Council’s Land Grant Permanent Fund earned 18.1% for the year ended Sept. 30, said Charles Wollmann, spokesman for the $16 billion endowment.
The land grant fund — the largest fund the council oversees —grew 16%, to $11.2 billion as of Sept. 30, from the year-earlier quarter.
The council’s total assets earned 17%.
Council officials attributed the growth to an ambitious portfolio overhaul, which resulted in more than a dozen requests for proposal for new investment managers and consultants. The council moved several billion dollars away from underperforming managers.
As part of the overhaul, the council adopted a new asset allocation last year, Mr. Wollmann said. The council cut domestic equities by 14 percentage points to 31% and increased “less volatile income-producing investments” such as real estate by five percentage points, to 10%, and real return by three points, to 8%. The council also added a 10% real return allocation.
