About the SIC
The New Mexico State Investment Council (SIC) manages New Mexico’s $30 billion permanent endowment, including the Land Grant and Severance Tax Permanent Funds, as well as investments for 23 other governmental clients.
The SIC meets monthly and its meetings are public and webcast. Schedules for the SIC and its committee meetings are available here.
As part of the SIC’s continued efforts to provide the public opportunities for a better understanding of the complex investment matters and responsibilities of the Council, a webcast of live and recent meetings can be accessed on the SIC’s YouTube channel.
The State Investment Council is chaired by the Governor and includes the State Treasurer; the Commissioner of Public Lands; the Secretary for the New Mexico Department of Finance and Administration; the Chief Financial Officer for a state university; four public members appointed by the Legislative Council; and two public members appointed by the Governor.
The State Investment Officer Steve Moise was appointed by the Council in 2010. You can read a message from him here, as well as review the Council’s accomplishments over the past seven years and goals for the future.
What is the SIC?
- The SIC is a professional institutional investment “firm” which manages more than $30 billion in permanent, “rainy-day” and governmental funds for New Mexico.
- Annually, the permanent funds provide a significant portion of the state budget – about 15% historically – and in FY21 will distribute over $1 billion to the general fund & beneficiaries.
- On average, these annual benefits save each New Mexico household about $1,300 in taxes every year.
- The permanent funds have grown in value by more than $17 billion over the last ten years, while also distributing more than $8.9 billion to the state during that time.
- As the funds grow, so does the amount they contribute to the state: from $370 million in FY2000, to more than $1 billion today.
- Fund investments have earned 8% annually over the past ten years, while the Council has restructured the portfolio to lower volatility and reduce investment risk..
- These “sovereign wealth funds” – the third largest in the United States – are a critical resource and a source of pride to all New Mexicans.
What is a Sovereign Wealth Fund?
A permanent endowment fund owned by and managed exclusively for a sovereign entity, e.g. a state, and benefiting that state or other specified beneficiaries which:
- is independent from other state financial or political institutions;
- is governed and managed by fiduciaries;
- is generally established from receipts generated by commodity leases, sales, or taxes (typically oil and gas);
- has a long-term investment horizon designed to achieve desired financial objectives;
- invests in diverse asset classes; and
- has as its purpose to provide:
♦ savings (to fund government services and ensure inter-generational equity for its citizens);
♦ budget stabilization;
♦ income (e.g. university endowments); or
♦ economic development.