Fund profits slip •Turmoil in Asia pares earnings of Retirement Fund, says administrator

Investments of the NMI Retirement Fund slid by $11.34 million last month from the total value posted in January, representing a 3.4 percent drop that has been attributed to the “volatile” conditions of the international stock market.

Fred Camacho, NMIRF acting administrator, said they expect the market to perform irregularly within the year, but assured they are still ahead from the fund’s earnings the previous year.

“We have been fortunate to be making money. There’ll be some months wherein we’d make several millions of dollars but then the market is quite volatile these days. So it fluctuates,” he told in an interview.

Total investment portfolio of the agency posted growth in January to reach nearly $338 million, but slipped to $326.5 million — equivalent to a decrease in market value of $11.3 million.

But the amount is still a 15.6 percent jump over 1998 fiscal activities as only $282.4 million worth of stocks were pegged by September last year, growing by $44.1 million based on the fiscal-year-to-date results.

Camacho said current numbers bode well for the Retirement Fund, whose earnings last year showed sharp decline of almost half the gains made in 1997 due to the Asian financial turmoil that sent global stock markets reeling from its impact.

While present market performance could not be entirely faulted to the prolonged regional recession, he maintained other factors, both domestic and international, are affecting US. stocks.

“(The fluctuation) is just in the drop in the market… because of the global economic conditions,” Camacho explained. “Our investments in Asia are not doing as well as the other domestic markets, but overall we are still ahead.”

More than 70 percent of the total assets of NMIRF — from excess retirement contributions and pension pay of government employees — are invested by the agency into the stock market, while the rest are funneled into bonds, treasury bills and other securities.

Money managers hired by the agency handle its portfolio activities which are invested in three large stocks — Atalanta Sosnoff, Rennaissance and Provident.

According to Camacho, they project the market value of its investments will continue to perform well within the next few months.

“The market is not shaky because we are still making money. We are being cautious because the stock market is volatile,” he said, adding its performance depends on how the international and domestic issues affect the US. market.

Managing the contributions of the 5,000-strong government work force for the last 20 years, NMIRF is mandated under the law to ensure revolving funds for their retirement benefits.