PERA invests with a long-term horizon and does not attempt to time markets through large tactical shifts. Portfolio results largely reflect market performance, and the Board focuses on maintaining discipline, diversification, and alignment with long-term objectives during market downturns.

PERA�s final annual investment returns are published with the release of its audited financial statements, typically in November following the close of the fiscal year (June 30). Finalization depends in part on the receipt of audited financial statements from private fund managers, which are generally received several months after fiscal year-end.

PERA operates a cost-efficient investment program across its defined benefit and deferred compensation plans. Investment expenses are disclosed in the Annual Comprehensive Financial Report. Source: https://www.nmpera.org/financial-overview/comprehensive-annual-financial-report/ Source (Performance): https://www.nmpera.org/investments/performance/

No. PERA is 100% externally managed. PERA deems this a cost-effective and operationally efficient way to leverage a manager�s specialized expertise or access to certain markets.�

No. PERA does not own physical gold, but may have indirect exposure through equity, real asset, or fixed income investments where gold-related businesses or commodities are components of broader portfolios.

PERA evaluates investment performance using policy benchmarks established by the Board for the total fund and for each asset class. Benchmarks are selected to be appropriate, investable, and measurable, providing a meaningful basis for evaluating both absolute and relative performance. The policy benchmark reflects PERA�s long-term strategic asset allocation and is updated following asset-liability studies or benchmark changes. Source: PERA�s Investment Policy (https://www.nmpera.org/investments/policies/) Source (Performance): https://www.nmpera.org/investments/performance/

PERA�s Board of Trustees establishes the strategic asset allocation based on a comprehensive asset-liability study. The analysis considers expected returns, risk, correlations, and the characteristics of PERA�s long-term liabilities. The resulting allocation is designed to balance expected return objectives with risk management and diversification. As of the newest Board approved target, effective April 1, 2024, that allocation target is: Global Equity: 46% Core Fixed Income: 13% Credit: 17% Absolute Return: 6% Real Assets: 18% Source: PERA�s Investment Policy (https://www.nmpera.org/investments/policies/)

PERA holds cash primarily to meet benefit payments and short-term operating needs. As a long-term investor, PERA seeks to remain largely invested in accordance with its strategic asset allocation while maintaining adequate liquidity to meet obligations

Yes. PERA is 100% externally managed for investments and as such, PERA�s external managers sometimes use derivatives in certain portfolios for purposes such as risk management, liquidity management, and efficient portfolio implementation. Derivative usage is governed by asset-class-specific policies and is closely monitored.

No. PERA�s investment portfolio is broadly diversified across asset classes, strategies, and issuers. Investment guidelines and statutory requirements help limit concentration risk and promote diversification.

Investment risk is primarily governed by the Board-approved asset allocation policy, complemented by formal risk management policies and ongoing monitoring. Diversification across asset classes and strategies plays a central role in PERA�s risk framework. Source: PERA�s Investment Policy (https://www.nmpera.org/investments/policies/)

Yes. PERA considers financially material ESG risks and opportunities when evaluating private market investments. As a limited partner, PERA conducts due diligence at the fund level but does not direct day-to-day portfolio company decisions, which remain the responsibility of the general partner.

PERA�s portfolio is structured to perform across varying economic environments and includes investments, such as real assets and certain equity strategies, that may help mitigate inflation risk over the long term. Some inflationary periods may still negatively affect performance in the short term

Yes. PERA may participate in co-investment opportunities alongside investment managers that have been approved for co-investment relationships. These investments are executed within established guidelines and governance frameworks designed to support disciplined implementation and risk management.

Yes. PERA engages external investment consultants to support the Board and staff. Verus serves as PERA�s general investment consultant and public markets consultant, while Albourne provides advisory services for private markets and other illiquid investments.

At least every three years an asset/liability analysis is performed, or more frequently if market conditions or plan circumstances warrant review.� Source: PERA�s Investment Policy (https://www.nmpera.org/investments/policies/)

No. PERA does not directly invest in cryptocurrencies within its defined benefit plans or its deferred compensation plans. However, PERA may have indirect exposure through investments in companies or assets related to technology infrastructure, utilities, or other businesses that support digital asset ecosystems.

PERA benefits from an experienced internal investment team, strong governance, and a long-term investment perspective. These factors enable PERA to manage assets prudently, control costs, and pursue sustainable returns in support of retirement benefits for New Mexico�s public employees

PERA�s private market investments include private equity, private credit, real assets (infrastructure, energy, agriculture, real estate), and absolute return (hedge fund) strategies. These investments are designed to enhance diversification and improve long-term risk-adjusted returns relative to public markets alone.