New Mexico – SANTA FE, N.M. (KRWG) New Mexico's largest permanent funds grew by $708 million during the past quarter because of investment gains.
The State Investment Council reported the Land Grant Permanent Fund returned 5 percent from January through March, ending the quarter with a market value of nearly $10.7 billion.
The Severance Tax Permanent Fund returned 5.5 percent and closed the quarter with a value of $3.9 billion.
Despite recent improvements, the funds have not fully recovered from market losses suffered since late 2007, when they had a combined value of nearly $15.6 billion.
Over the past five years, the land grant fund returned 4.2 percent annually and the severance tax fund had annualized returns of 3.2 percent.
Distributions from the permanent funds help finance public education and other government programs.
Copyright 2011 The Associated Press. KRWG