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MPLT invests $1M from DPL to Seix
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Posted on Dec 12 2011
By Clarissa David
Reporter
Reporter
Heeding the advice of its investment consultant, the Marianas Public Land Trust board of trustees agreed to invest in the market the $1 million it recently received from the Department of Public Lands through its high yield fixed income manager.
The board made the decision to invest the money with Seix after Daniel Roland, senior vice president for wealth management and senior institutional consultant for Morgan Stanley Smith Barney, made a presentation during Friday’s meeting.
Board member Pete Cruz argued that the money should be invested with Seix “instead of idling in the bank.”
In Roland’s presentation, MPLT’s general fund as of Nov. 30 is invested 6.5 percent in high yield fixed income, 11.9 percent in global fixed income, 9.7 percent in large cap core, 5.8 percent in emerging markets, 9.8 percent in convertibles, and 43.7 percent in core fixed income.
MPLT’s portfolio as of Nov. 30 is valued at $61.726 million
Asked by chair Alvaro Santos as to what would be a safe percentage to transfer to its high yield fixed income investment “that would significantly yield,” Roland said it would “make sense” if the $1 million from DPL would be invested in Seix.
DPL remitted last Nov. 23 $1 million, representing its land lease payment collection for fiscal year 2011.
Roland noted in his presentation that income yield for MPLT is doing “very healthy” at 3.5 percent.
But Roland pointed out that the continuing Euro crisis, the federal government’s large deficit, and next year’s election will continue to contribute to the market’s volatility.
“It’s certainly going to be a bumpy ride,” Roland said.
