14 Oct 2011

CNMI Retirement Fund OKs liquidation of assets

10:09 am on 14 October 2011

The CNMI Retirement Fund's board of trustees approved yesterday the immediate liquidation of its assets, temporarily investing them in mutual funds, and eventually securing them in insured banks to protect them from market fluctuations.

The decision comes on the heels of the recent loss of the Fund's investment consultant, Wilshire Associates, which ended its relationship with the Fund on Tuesday, according to officials.

As of Oct. 11, the Fund's total portfolio had a market value of 264-point-29 million US dollars, according to the Fund board chair, Sixto Igisomar.

Pursuant to law, the Fund cannot invest its assets without the advice of an expert such as Wilshire Associates.

An emergency request for proposal for Wilshire's replacement was ordered yesterday.

The Fund's money managers have been fleeing the Fund in droves since the passage of the Beneficiaries Derivative Act early last month.

The new law allows pensioners to sue the Fund's assets managers if the board of trustees refuses to initiate such action.