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Fund optimistic of investment prospects in 2005
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Posted on Jan 22 2005
The NMI Retirement Fund remains optimistic that its investment performance this 2005 will continue to surge, despite a Merrill Lynch warning that the Fund may not get the same double-digit gains it posted last year.
“We’re optimistic. Yes, we need to be realistic but we’re in constant communication with our consultant,” said Fund board chair Joseph Reyes.
In a meeting last week on Saipan, Merrill Lynch investment consultants Patrick McFadden and Keri Tanaka said that the Fund’s double-digit earning in 2004 was impressive but it may not necessarily happen this year.
The Fund registered a record high investments value at $394.2 million as of December 31, 2004, which was about $40 million more from its third quarter asset last year.
Reyes said that such growth was the highest in 23 years or since the beginning of the Fund.
The strong market performance in the last quarter of the year was due to sound investment strategies, asset allocation, as well as overall market condition in the U.S, McFadden said.
Tanaka, meantime, warned that a double-digit return does not usually occur in two consecutive years. She also said that it is too early to tell whether 2005 is the beginning of the bull market.
For his part, Reyes said that the agency would closely monitor its investments to avoid potential losses.
“We get a report card about our investments regularly. If we see any trend of nonperformance, we’d ask our consultant to act accordingly,” he said.
The Fund’s total market value as of Dec. 31 was $394.2, a huge increase from $435 million in September.
As of Dec. 31, 2004 large capital investments reached $195.7 million; small capital equities, $52.6 million; international equities, $53.5 million; fixed income, $55.2 million; Treasury Inflation-Protected Securities or TIPS, $20 million; and cash, $16.2 million.
These assets are being handled by Atalanta, Sabre, S&P 500 Idex Fund, Stratem, Renaissance, Nicholas-Applegate, Gabelli, EAFE ETF, Templeton, Provident, and IRM. They report to New York-based Merrill Lynch on a regular basis.
Merrill Lynch, meantime, provides the Fund a summary of the manager’s performance on a monthly basis.
