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Fund investments hit record high $425M
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Posted on Aug 16 2005
The NMI Retirement Fund has posted a record high value of investments at $425 million as of end of July, reflecting a $51.8 million growth in less than a year.
Fund administrator Karl T. Reyes said yesterday that the latest posting is a “tremendous increase” from the September 2004 figure of $373 million.
“It’s the highest so far—$425 million—since the beginning,” said Reyes.
On a year-to-year comparison, though, he said the Fund recorded almost $100 million in investment income sometime in 2002.
Reyes attributed this year’s growth to overall good market conditions. “It’s because of the entire market. It’s favorable trading in stocks and bonds,” he said.
The Fund originally invested $167 million in cash in 1986.
The last time the Fund’s investments reached a record high was in December 2004, when its value reached $394.2 million—a radical increase of about $40 million from its third quarter asset last year.
Merrill Lynch consultants earlier said the strong market performance in the last quarter of 2004 was due to investment strategy, asset allocation, as well as overall market condition in the United States.
The Fund only maintains one money manager, Templeton, for the international market.
Merrill Lynch investments associate Keri Tanaka earlier cautioned the Fund not to expect too much in 2005, noting that a double-digit return trend does not usually occur for two consecutive years.
The Fund’s large capital equities represent 50 percent of its investment while small cap represents 13 percent. International equities and fixed income represent 13 percent each. TIPS or Treasury Inflation-Protected Securities reflects 5 percent of total investments, while cash assets are at 4 percent.
The Fund’s investment is handled by 10 managers that regularly report to Merrill Lynch. These include Atalanta, Sabre, S&P 500 Idex Fund, Stratem, Renaissance, Nicholas-Applegate, Gabelli, EAFE ETF, Templeton, Provident, and IRM.
