While lawmakers continue to debate how to reform the State Investment Council, the group's board has announced it will distribute $720 million to public schools and other permanent fund beneficiaries in fiscal year 2011 -- an $8 million increase over the current year.
After the 2008 market collapse and credit crisis, the state Land Grant Permanent Fund investment grew 21.2 percent in 2009 -- outperforming its policy index by 4.5 percent. That return ranked it in the top third amoung its peers. Investment returns were also in double digits for the Severance Tax Permanent Fund last year. It grew 19.8 percent -- outperforming its benchmark by 4.4 percent. It ranked in the 43rd percentile among its peers in the same time period.
"These distributions show the overall vitality of the Permanent Funds, which continue to experience long-term growth, despite the economic downturn," interim State Investment Officer Bob Jackson said in a news release. "This is the ultimate purpose of these trust dollars -- to produce steady earnings that benefit New Mexico residents today, as well as future generations."
Annual distributions are based on a 5-year rolling average of the state's permanent endowment and are established by the state's contitution.
Perfomance data and individual SIC manager performance for 2009 can be reviewed online.