DEFINED BENEFIT

New Mexico Educational returns 8.5% in 2016 but misses benchmark

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New Mexico Educational Retirement Board, Santa Fe, returned 8.5% for the year ended Dec. 31, underperforming its benchmark of 9.1% but surpassing its assumed actuarial rate of return of 7.75%, said Bob Jacksha, chief investment officer for the $11.7 billion pension fund.

The top-performing asset classes were infrastructure, with a 13.7% return, and domestic large-cap equity at 12.1%. The worst-performing asset class was non-U.S. developed markets equity at -0.5%.

The pension fund returned an annualized 8.5% for the five years ended Dec. 31, compared to its 7.6% benchmark and an annualized 5.1% for the 10 years ended Dec. 31, outperforming its 4.4% benchmark.

The pension fund's return since inception was an annualized 9%, reflecting the period of July 1983 through Dec. 31.