New Mexico – A state panel is revamping the investment strategy for New Mexico's $13 billion permanent funds in hopes of improving performance and ensuring they remain a stable source of financing for public education and other governmental programs.
The funds need to generate a long-term investment return of about 8 percent to make certain they can continue to pay out money to operate state government and not have their assets eroded over time by inflation. However, the funds have fallen short of that target.
To help improve performance, the council has approved a new allocation of fund assets. The plan calls for reducing investments in equities, such as stocks, and shifting more to other investments, including fixed income.
Copyright 2010 The Associated Press.