Of the approximately 30 public pension funds that Pensions and investments tracked so far, New Mexico Educational tops the list for the fiscal years ending 30 and is only the third plan with a positive return.
The $15.5 billion pension plan outperformed its benchmark for all periods, including a benchmark of -2.8% for the year. The New Mexico ERB also reported 8.8% for three years (7.2% baseline), 8.4% for five years (7.5%), and 8.5% for 10 years (7 .7%) ending June 30.
The New Mexico Educational Retirement Board’s expected rate of return is 7%. The plan gained 28.76% in the prior year, beating its benchmark target of 24.28%.
Mr Jacksha said the “heroes” among the asset classes for the year were private real estate with a return of 35.1% and private equity at 21.9%. Global tactical asset allocation got “an honorable mention” at 18.5%, he said.
The “zeroes” were non-US equities – emerging market equities returning -27.2% and non-US developed market equities returning -18.2%; and risk parity at -15.7%.
As of June 30, the pension plan was 24% public equity, 23% private equity, 17% opportunistic credit, 11% diversified assets, 10% real assets, 9% real estate, 5 % core bonds and 1% each emerging markets. debts and cash.
The New Mexico ERB has target allocations of 44% to alternatives – made up of 15% private equity, 12% diversified assets, 9% inflation-linked assets and 8% real estate; 31% in equities, ie 17% US equities and 14% non-US equities; and 24% fixed income, consisting of 16.3% opportunistic credit, 4.5% core fixed income and 1.4% emerging market debt; and 1% in cash.