Investment Accounts Details

 The State Investment Council (SIC) was established by statute in 1957 and is charged with managing New Mexico’s Permanent Funds.  The SIC now distributes more than $700 million annually to the benefit of NM schools and taxpayers, and its goal is to optimize annual distributions to the state’s operating budget, while preserving the real value of the Fund for future generations of New Mexicans. Enabling legislation of the SIC is located in Chapter 6-8-1, New Mexico Statutes Annotated (NMSA) 1978. In addition to the Land Grant, Severance Tax, Tobacco Settlement and Water Trust Permanent Funds, the Council manages investments for 17 governmental clients. Land Grant Permanent Fund (LGPF) – The Fergusson Act of 1898 and the Enabling Act of 1910 granted certain lands held by the federal government to the territory of New Mexico. Under the terms of these grants, it was stipulated that such lands, totaling 13.4 million acres, were to be held in trust for the benefit of the public schools and other specific public institutions. Severance Tax Permanent Fund (STPF) – The State of New Mexico levies a severance tax on certain natural resources extracted from land within the State. Severance tax revenues are first applied to pay the required debt service on Severance Tax Bonds issued by the State. Remaining severance tax revenues are then transferred to the SIC, which adds these amounts to the STPF. Tobacco Settlement Permanent Fund (TSPF) – The State of New Mexico receives monies in the Tobacco Settlement Permanent Fund pursuant to the master settlement agreement (which was executed on November 23, 1998) entered into between the tobacco product manufacturers and various states. Money in this fund is invested pursuant to Chapter 6-8, NMSA 1978 and income from investment of the fund is credited to the fund. Chapter 312, Laws of 2003 mandates that the Tobacco Settlement Permanent Fund shall be considered a reserve fund of the state. Water Trust Fund (WTF) – The water trust fund was created in the State Treasury and consists of monies appropriated, donated, or otherwise accrued to the fund. Money in the fund shall be invested by the state investment officer as land grant permanent funds are invested pursuant to Chapter 6-8, NMSA 1978.All funds managed by the SIC are long-term trust funds. The SIC establishes an investment policy, which includes the asset allocations, for the LGPF, STPF, TSPF, WTF, and the SUTF. The asset allocations and distribution policies for the other client funds are set by the client agencies. The Investment Holdings Report, which is provided by SIC, provides a monthly summary of the investments for each of the permanent funds and managed investments. The report consists of current market values for each investment, the current month’s diversification of investments, a summary of the monthly activity affecting the market value, and a preliminary performance report for several different periods ending with the current month.

Additional information regarding the SIC and the state’s Permanent Funds can be found at http://www.sic.state.nm.us