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NMIRF assets hit $390 million
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Posted on Feb 03 2000
The NMI Retirement Fund’s off-island portfolio earned $57.4 million in the last quarter of 1999, bringing to 390.55 million the total assets of the Fund managed by its nine money managers.
Based on the Fund’s investment report for the month of December alone, the off-island portfolio reported a gain of $28.89 million.
Of the nine money managers, Atalanta, which manages large-cap gave the biggest investment return of $28.68 million, followed by Provident’s earnings of $11.54 million.
In terms of equity allocation, 88 percent of the Fund’s money is invested in the domestic market amounting to $249.55 million, 3.6 percent or $10.22 million in Asia, while 8.3 percent or $23.55 million in the international market.
Breakdown of the Fund’s assets is as follows: 72.5 percent in equities, 22 percent in fixed income, and 5.30 percent in cash and cash equivalents.
Although its overseas investments have shown significant increase in earnings, Fund Administrator Juan S. Torres has expressed concern on the cash flow situation of the agency which may hamper operations.
The Fund needs $3 million every month to manage the contributions of the 5,000-strong government workforce. Of this, some $1.9 million goes to pensions of government employees while the rest are spent on salaries and administrative expenses. The Fund’s total revenue covering the contribution of members and employers amounts to
$1.44 million every month.
Based on the cash requirement projection of the Fund, the agency would only have a $2.41 million cash balance in April. The shortfall in the succeeding quarter is expected to be offset when the CNMI government gives its $1.6 million payment every quarter for its $30 million unpaid employer’s contribution to the Fund.
By June 2000, the Fund’s cash balance is projected to be only at $1.58 million.
Mr. Torres said the Fund may take out some of its overseas investments to pump in enough cash for its operational expenses if the government fails to settle its contribution on time.
“We may be forced to liquidate our investments to pay our annuity. It is as simple as that if the government does not pay its contribution soon for our operational expenses,” he said.
