A referendum on November's election ballot in New Mexico would, if approved, allow the $7 billion New Mexico State Permanent Fund, Santa Fe, to invest internationally. The referendum also would abolish a restriction allowing the fund to invest only in equities that have a 10-year dividend history, and would change the distribution formula to allow the fund to be managed on a total return basis.
Currently, the fund pays investment income to the state's general account. Instead, while a large portion of this income would still go to the state's general fund, a new formula would make it possible to avoid having to pay out all income every year, said Susan Enos, an equity portfolio manager.
