SANTA FE, N.M. - Gary B. Bland was named state investment officer of the $10 billion New Mexico State Investment Council, Santa Fe. He succeeds Philip J. Archibeck, who was replaced by Gov. Bill Richardson. Mr. Archibeck didn't return calls requesting comment about his plans.
Mr. Bland retired in 2001 as vice president-trust investments at Boeing Co., when the company moved its corporate headquarters, including pension investments, to Chicago from Seattle.
Gov. Richardson, elected in the fall, appointed Mr. Bland following a national search. The Legislature confirmed his appointment on Feb. 4, effective immediately.
The council oversees the state permanent funds; contributions come from land-grant revenue and severance taxes on resources.
"I'm really pumped up about this job," Mr. Bland said. He said he found out about the opening through investment industry contacts. No recruiting firm was used.
He plans to review all investment management relationships. New England Pension Consultants will assist. About half of the assets are run internally.
The council's external managers are, according to the Money Market Directory and Nelson's Information Directory: Alliance Institutional Investment Management; Artisan Partners; Baillie Gifford Overseas Ltd.; Boston Co. Asset Management LLC; Capital Guardian Trust Co.; Cramer Rosenthal McGlynn LLC; Fidelity Institutional Retirement Services Co.; First Quadrant LP; W.R. Huff Asset Management; Jarislowsky, Fraser Ltd.; Putnam Investments Inc.; Shaker Investments; and Sprucegrove Investment Management Ltd.
The council oversees the Land Grant Permanent Fund, with $7.4 billion in assets as of Dec. 31, 2001, the latest numbers available; the Severance Tax Permanent Fund, $3.8 billion; and the Tobacco Settlement Permanent Fund, $50 million; as well as assets of other state agencies.
The allocation of the land fund was roughly 34% core bond, 30%.active large-cap U.S. equities, 9% indexed large-cap U.S. equities; 11% midcap and small-cap U.S. equities; 10% active non-U.S. equities; 4% index non-U.S. equities; 2% private equities. The severance fund has a similar allocation.
Mr. Bland will direct a staff of 21, including 17 in investments.
He especially wants to enhance in-state investments to help stimulate the state's economy, a goal of Gov. Richardson; Mr. Bland said as long as the bid for an investment project is competitive, he will consider it.
"I said I had ambitious plans for the State Investment Office, and I wanted a leader who will take the office in a new direction," said Gov. Richardson in a statement.
Mr. Bland said he will "look seriously" at investing in New Mexico and doing more of the fund business within the state. Over the next month, he will work with the Legislature on in-state investment allocation proposals, including proposals for real estate equity and debt, and private equity. The funds don't invest in real estate now, Mr. Bland said.