New Mexico State Investment Council's endowments earned a gross 8.55% for the fiscal year ended June 30, compared to the 15.07% return for the prior fiscal year, according to a report by RVK, general investment consultant to the council.
The council's $17.5 billion Land Grant Fund, its largest fund, returned 8.55%, outperforming its 7.92% benchmark for the year. It returned an annualized 7.23% for the three years, compared to its 6.61% benchmark; 8.11% vs 8% benchmark for the five years; and 6.27% vs. the 6.21% benchmark for the 10 years ended June 30.
The total portfolio's highest-returning asset class for the fiscal year was U.S. equity with a 13.71% return, underperforming its 14.78% benchmark. Private equity earned 13.26%, (16.17% benchmark); global equity, 11.32% (11.67%); real estate, 11.27% (7.11%); non-U.S. equity, 8.76% (7.75%); non-core fixed income, 5.37% (2.48%); real return, 5.17% (4.51%); fixed income, 2.62% (-0.28%); cash, 1.35% (1.36%); and core fixed income, 0.86% (-0.4%).
The interim target allocation for the Land Grant Fund is 24% U.S. equity, 20% non-U.S. equity, 14% non-core fixed income, 11% core fixed income, 10% each private equity, real estate and real return, and 1% cash equivalents.
The council oversees a total of $23.3 billion in endowments.
