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Fund adds $3.5-M in its Asian investment
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Posted on Jul 12 2000
The Northern Mariana Islands Retirement Fund Board has approved the infusion of an additional $3.5 million into its investment in Asia as the region has shown signs of economic recovery.
This brings to $18.5 million the total money now handled by its money manager Invesco Asia Ltd. in the region. In January 1996, the Fund invested $15 million in Asia but the financial crisis in the region has brought down the value of its investment to $6 million in June 1998. As of May 31, 2000, the Fund’s $15 million investment is valued at $9.8 million.
According to Vicente Camacho, NMIRF Board chair, the decision was made by the board directors after meeting with their regional economists and money managers in Hong Kong in October 1999.
Mr. Camacho assured Fund members that Asia is still a good place to invest their money as the region has shown signs of economic improvement. One must at least give 5 to 10 years to be able to gauge the performance of the Fund’s investment in the stock market.
“It is understandable when people get scared and we are allowed to take certain level of risk,” he said. In 1999, the Fund was about to get rid of one of its money managers but changed its decision after the investment it was handling showed improvements.
The Fund has hired nine money managers to handle its investments in Asia, United States and Europe.
NMIRF has been experiencing problems in its operation due to non-payment of government’s contribution to the Fund which has reached $32 million as of May 2000.
