MPLT: Quiet organization providing substantial benefits

Marianas Public Land and Trust has completed its accounting for the year ended Sept. 30, 2005 and is pleased to announce the results of their investment activities.

Fiscal year 2005 continued to be a year of growth to its portfolio as the equity markets continued the strong performance that commenced in fiscal year 2003.

During the down markets in 2001 and 2002, MPLT lost value in its portfolio, but the loss has been fully recovered as of 2005

As of Sept. 30, 2005, MPLT has realized the following returns and growth:

General Fund – Park Fund
2005 Annual Investment Returns: 11.58 percent – 9.69 percent
2005 Increase of Growth to Investments: $3,985,066 – $164,268
2005 Annual Distribution of Beneficiaries: $1,064,661 – $294,713
Historical Growth of Principal Since Inception (1984): $36,092,297 – $5,297,023
Total Distributions to Beneficiaries Since Inception (1984): $34,157,541 – $3,793,767
Total Principal Funds: $61,034,899 – $7,297,023

From the figures above, its important to note that while MPLT’s initial total principal contributions received from Marianas Public Land Authority amounted to $26,942,602, MPLT has been able to multiply this initial funding to a total of $68,331,922 or a multiple of 2.54 times since 1984. This was accomplished while distributing funds to its beneficiaries, the Commonwealth general fund and the American Memorial Park, in the amount of $37,951,308. This translates to a total financial benefit to the Commonwealth of $79,340,628 over the past 22 years.

How are the MPLT’s distributions used? The bulk of the amount given to the Commonwealth general fund has been treated as general revenues and appropriated by the Legislature to fund the operation of the government. Part of the appropriations have been returned to MPLT in the form of the interest earned on the Northern Marianas Housing Corp. loan and application of distribution to the Commonwealth general fund toward repayment of this loan. The total amount of contributions from appropriations has been $4,459,487 and $3,481,54, respectively.

As part of its mandate, MPLT manages the American Memorial Park Fund in accordance with the Covenant. The original principal fund as of Sept. 30, 2005 is $7,297,023. Additionally, substantially all of the improvements to the American Memorial Park have been funded by this separate trust fund. This includes the new Visitors Center and Memorial Gardens.

Other direct benefits provided to the Commonwealth has been our loans to the Northern Marianas Housing Authority in the amount of $10 million, which was used to provide long-term mortgage financing to approximately 162 families. The loan is intended to revolve as loans are sold to banks and should provide a continuous source of funds for long-term mortgages. Additionally, MPLT entertains many proposals for local projects and gives all of them consideration.

MPLT has also provided investment support to the Department of Finance by managing the Saipan Trust Fund. In 1991, MPLT was asked to manage a fund inherited from the Trust Territory, which amounted to $175,449. During the following 13 years MPLT was able to grow the fund to $673,918, which has been appropriated recently to fund Tinian scholarship and medical assistance, Saipan Museum, and the Connecting Families program.

Overall, MPLT is a quiet organization providing substantial benefits to the Commonwealth. (PR)