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Rio Rancho permanent fund posts gains; oversight recommends adding 5% real‑return allocation and policy clarifications
Summary
Oversight staff reported strong year‑to‑date performance for the city’s Permanent Fund (seeded in 2023) and recommended adding a 5% target for real‑return assets and clarifying language to reflect use of State Investment Council pools; the oversight board voted to accept the proposed edits.
Deann Woodring, the oversight advisor for Rio Rancho’s Permanent Fund, reviewed fund performance and policy recommendations. She said the fund began 01/01/2023 with $10,000,000 seed money and that market value rose to about $15,000,008.96 after positive returns across equities and bonds. Woodring highlighted strong international equity returns year‑to‑date and noted the fund’s diversification across equities, international securities, real assets and fixed income. She recommended adding a 5% target for real‑return assets to the policy and clarified language to reference external SIC pools local governments may use.
The board discussed asset allocation targets, rebalancing ranges and manager/pool selection language. Woodring said policy edits would bring the fund’s documentation into alignment with the State Investment Council structure and recommended maintaining a modest target for real‑return assets to diversify without materially increasing risk. The board voted to accept the proposed changes and to pursue a fuller asset‑allocation discussion at the next meeting.
