"To protect and grow the state's permanent endowment funds for current and future generations, through prudent, professional investment management."
Steve Moise, NM State Investment Officer
This is the mission of the State Investment Council, and part of an overall Mission Vision Values statement adopted by SIC staff and endorsed by the Council in 2011.
This statement delineates our values and goals as we strive to become one of the most highly respected global sovereign wealth funds.
New Mexico is very proud of the fact that we have one of the three largest sovereign wealth funds (permanent endowments) in the United States ($20.5 billion) and one of the larger global funds. Thanks to the far-sighted planning of our legislature in 1958, the SIC annually contributes, on average, 15% of our state's operating budget - saving each NM family more than $1000 in taxes each year. With consistent investment performance and our annual receipts from natural resource revenues and land-grant related revenues, we hope to be able to consistently maintain or increase our annual contributions to the state budget and to the beneficiaries of the other funds we manage.
By investing prudently over time, we will enable future generations to enjoy the same or a greater level of benefits compared to what we currently provide to our citizens. Ongoing efforts to restructure Permanent Fund investments have enabled the Council to grow its assets by $7.2 billion since 2010.
The Council has approved new investment strategies that once fully implemented, will increase income- producing assets, which will help reduce overall volatility of the portfolio.
In addition to our Land Grant and Severance Tax Permanent Funds, and the Water Trust Fund and Tobacco Settlement Permanent Fund, we currently manage investments for 21 other governmental entities.
I am honored to have the opportunity to serve the SIC and our citizens in coordinating the operations of the State Investment Office. Over the past six years, the SIC has implemented numerous changes, some of which have produced the following results:
- Improved our long-term peer-related investment performance rankings;
- Distributed almost $4.5 billion to state beneficiaries since April 2010;
- Adopted fundamental investment philosophies and beliefs, and realigned staff to reduce internal and increase outsourced investment management, with prudent monitoring;
- Revised our asset allocation model, and our annual performance targets. We are implementing strategies to ensure appropriate diversification and improved long-term performance, hedging against volatility and utilizing strategies designed to reduce risk;
- Established investment, audit, governance, legal and legislative committees, thus improving governance;
- Re-structured the Council and the staff to comply with statutory changes in 2010 & 2011, and to adopt best practices recommended by fiduciary consultant Hewitt-EnnisKnupp (now Aon Hewitt);
- Adopted more than a dozen new policies, including a Code of Ethics and a Code of Conduct, with several others under consideration;
- Completed two human capital organizational analyses, resulting in critical re-alignments;
- Conducted a successful national search for our Deputy/Chief Investment Officer, and hired a new Chief Counsel, Deputy Counsel/Compliance Officer, and Chief Financial Officer;
- Terminated more than 20 consultants and investment managers - many related to job performance - while hiring new managers and consultants with additional RFP's in progress;
- Achieved some significant legal settlements (almost $180M as of October 2016), with continuing active pursuit of legal recoveries for pay-to-play related damages and investment losses related to matters which pre-date this Council's oversight;
- Initiated legislation, resulting in 6 new laws or statutory improvements, including a constitutional amendment which was approved by voters in November 2014;
- Implemented an outsourced internal audit program; and
- Completed a first-ever strategic planning process, with further reforms to be pursued.
Our Council and each member of our staff is committed to fulfilling our fiduciary responsibilities in a professional, ethical, and respectable manner. We strive to merit the trust of our stakeholders. Thank you for your interest in & support of our efforts
Steven K. Moise
State Investment Officer