Educators’ Pension Fund Investments Post Fiscal Year Gains Of More Than $1 Billion

SANTA FE The New Mexico Educational Retirement Board fund, which provides defined pension benefits to the state’s public educational employees, posted net investment gains of $1.02 billion for the 2018 fiscal year which ended June 30, 2018.
This represents a return of 8.3 percent for the fiscal year, net of investment manager fees. This exceeds the actuarially assumed rate of 7.25 percent. The asset value of the fund was $12.9 billion as of June 30.
As for longer term results, net of investment management fees, the fund investments returned 7.6 percent over the last three years, 8.1 percent for the last five years and 9.1 percent since July 1983. In all time periods measured, from the latest quarter to as long as 30 years, the fund’s return exceeded the median return of U.S. public pension funds with assets of more than $1 billion, as measured by the InvestorForce Public Funds Net Universe.
“We are very pleased with the investment results,” stated Educational Retirement Board Chair Mary Lou Cameron. She also noted, “Once again, we have achieved our most important investment goal, that of meeting our required rate of return. Nonetheless, we must continue our other work to meet our long-term sustainability goals for the fund. Investment returns alone are not likely to provide enough improvement in our overall financial position to meet the funding policy adopted by the Board.”
The educational retirement pension plan covers close to 60,000 active members currently paying into the system and 47,000 retirees, ranging from public school teachers, administrators and staff to college faculty and staff.
Members can find a dashboard and detailed investment results on the ERB’s web site:
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