State pension funds struggle with shortfalls
If there were a 2016 all-star team of pension managers, New Mexico’s Bob Jacksha probably would be leading it.
With most public funds in the United States booking investment returns of 1 percent, Jacksha, chief investment officer of the New Mexico Educational Retirement Board, notched 2.6 percent after fees.
That return was twice the national average and larger than high-profile funds in California, which earned 0.6 percent, or New York state, with a gain of 0.2 percent. In fact, the Educational Retirement Board’s gains put the fund in the top tier of peer funds nationally for investment returns in the just-ended fiscal year, which ended in June.
Still, Jacksha is the first to say the money earned with a diversified investment portfolio is not enough. The fund has failed to reach its goal of a 7.7 percent return for the past two years. The $11.4 billion fund paid out $901 million during the year to 42,000 beneficiaries.
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