The New Mexico State Investment Council has increased its target allocations to real estate for its tobacco and water funds.
According to meeting documents released on May 28, the $204 million Tobacco Settlement Permanent Fund (TSPF) now has a 20 percent target allocation to real estate. The TSPF is a relative of the state’s reserve fund. During its early years, the fund received approximately half of the annual tobacco payments to the state, or $20 million per year, while the other half went toward health and tobacco cessation programs. Until this year, real estate allocations did not have a designated asset class and were grouped into real assets portfolio.
The $43 million Water Trust Fund (WTF) has a new target allocation to real estate of 22 percent, up from 15 percent. The WTF is a permanent state fund that distributes $4 million annually to the state’s Water Trust Board.
The fund reallocations are small on a nominal basis, according to Charles Wollman,
