New Mexico State Investment Council (NMSIC)

The New Mexico State Investment Council (NMSIC) is an investment management organization responsible for managing the state's financial assets, including the Land Grant Permanent Fund and the Severance Tax Permanent Fund. Established in 1958, NMSIC is overseen by a council composed of state officials and private citizens, which ensures a diverse and balanced representation of interests.

The Land Grant Permanent Fund is an endowment fund derived from revenues generated by the leasing and sale of state trust lands, while the Severance Tax Permanent Fund is funded by taxes on natural resource extraction in New Mexico. The primary goal of NMSIC is to optimize the returns on these funds while adhering to the principles of prudent investment management.

NMSIC's investment strategy is focused on achieving long-term growth and maintaining a diversified portfolio of assets, including equities, fixed income, real assets (such as real estate and infrastructure), private equity, and other alternative investments. The council has developed an asset allocation plan that takes into account the risk tolerance, investment objectives, and time horizon of each fund.

In addition to its primary responsibility of managing the Land Grant and Severance Tax Permanent Funds, NMSIC is also responsible for managing other state funds and trusts, including the Tobacco Settlement Permanent Fund, the Public Employees Retirement Association (PERA) pension funds, and the Educational Retirement Board (ERB) pension funds. These funds have different objectives and risk profiles, requiring the council to adopt tailored investment strategies for each.

The New Mexico State Investment Council is committed to responsible investment practices, considering environmental, social, and governance (ESG) factors in its investment decision-making process. NMSIC believes that incorporating ESG considerations can help identify potential risks and opportunities that may impact the long-term performance of its investments.

The NMSIC plays a crucial role in providing financial resources for New Mexico's public education, infrastructure projects, and other essential public services. By prudently managing the state's financial assets, the council aims to generate sustainable returns that support the well-being of New Mexico's citizens and ensure the long-term growth and stability of the state's financial resources.