The Commonwealth pension program\u2019s portfolio is down to $256.7 million as of Dec. 27\u2014a $4.5-million decline from the $261.2 million recorded on Nov. 30, according to NMI Retirement Fund administrator Richard Villagomez yesterday.<\/p>\n
About $90 million of the $256.7 million has already been transferred to the certificate of deposit account registry service, or CDARS program, Villagomez said.<\/p>\n
This significant drop in the value of the portfolio is attributed to the continuous drawdown being made by the Fund and the absence of the pension program in the international market as a result of the resignation of its investment consultant.<\/p>\n
In October and November 2011 alone, it was reported that drawdown reached $8.4 million, representing four withdrawals of $2.1 million each. Villagomez said the amount is slightly lower than what used to be taken out per withdrawal due to some contributions received from the government and autonomous agencies.<\/p>\n
With $90 million of the funds already in CDARS, that leaves $165 million that is still invested in fixed income and $1.5 million that is still being liquidated from former money manager JP Morgan, said board chair Sixto Igisomar. The $1.5 million is still part of the original $20 million investment that the board began liquidating from the money manager since last year.<\/p>\n
Igisomar said the board still intends to put all its assets in the CDARS program\u2014as recommended by former investment consultant Wilshire Associates\u2014while the Fund still has no consultant. Pursuant to law, the board cannot invest its assets without an expert\u2019s financial advice; moving the assets to CDARS aims to protect the money. <\/p>\n
The Fund is still scrambling to find a new financial adviser in the wake of Wilshire Associates\u2019 resignation in September last year due to the passage of the Beneficiaries Derivative Act. That law allows retirees to sue on behalf of the Fund if the board refuses to take such action. <\/p>\n
Villagomez disclosed that the transition to the CDARS program is being slowed down by the limited capacity of their provider to take large amounts. He said the maximum amount that can be taken by the provider\u2014First Financial\u2014varies every week.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Commonwealth pension program\u2019s portfolio is down to $256.7 million as of Dec. 27\u2014a $4.5-million decline from the $261.2 million recorded on Nov. 30, according to NMI Retirement Fund administrator Richard Villagomez yesterday.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-157924","post","type-post","status-publish","format-standard","hentry","category-local-news"],"_links":{"self":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/157924","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/comments?post=157924"}],"version-history":[{"count":0,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/posts\/157924\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/media?parent=157924"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/categories?post=157924"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saipantribune.com\/index.php\/wp-json\/wp\/v2\/tags?post=157924"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}