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Board approves clarifying edits and a 5% target for real‑asset allocation in permanent fund policy
Summary
The advisory board accepted staff-recommended wording changes to the permanent fund investment policy, including clarifications about SIC external pools and a suggested 5% target for real‑return/real‑asset allocation; the motion passed by roll call.
The Rio Rancho Investment Advisory Board approved staff-recommended clarifying edits to the permanent fund investment policy and accepted a proposed 5% target for real‑return/real‑asset allocation.
Director Stephanie Yara introduced the policy review and said the board’s charge includes reviewing permanent fund earnings and weighing in on how earnings might be used. Deann Woodring, the board’s oversight advisor for the permanent fund, summarized her recommended edits: refine wording to reflect that the State Investment Council offers external pools (not local external managers), clarify the real‑return/real‑asset description, and add a 5% target for that allocation.
Woodring said the policy currently lacks explicit language on real‑asset targets and suggested including a 5% target so the board can set ranges and rebalance triggers. She noted the permanent fund is diversified across domestic equity, international equity, real assets and fixed income and that adding a specific real‑asset target would align written targets with current holdings.
A board member moved to accept the proposed edits and the motion was seconded. The board approved the updates by roll-call vote.
Board members said they expect staff to return next quarter with asset-allocation modeling and any additional policy language needed to implement a separate short‑term cash component if the board pursues that option.
The approved edits are advisory and will be forwarded to the governing body as the board’s recommendation.
