THE Retirement Fund lost $83.6 million or 21 percent of its total stock market portfolio during fiscal year 2001 due to the volatile condition of the international market compounded by the Sept. 11 terrorist attacks.
As of Sept. 30, 2001, the Retirement Fund declared a net worth of over $314 million. During the previous fiscal year, it was valued at over $398 million.
In an interview, Retirement Fund legal counsel Kathleen Troy-Rucker said the losses were accumulated from mid-summer of 2000 throughout 2001.
But Troy-Rucker said they had slowly recovered part of their losses as of April this year.
“The portfolio had a few rough months before (Sept. 11). Everything that we lost…has been regained by the portfolio. As of March 31, (2002), the market value of the portfolio was just a little bit over $350 million,” Troy-Rucker said.
“The stock market had a bit of a bumpy ride in April. The portfolio was down a little bit. But it would be considered a small percentage,” she added.
There are 10 money managers handling the Retirement Fund’s account. They are all under strict instruction to closely monitor the movement of the market to prevent more losses.
Troy-Rucker said they are facing a difficult situation just like other investors because the market fluctuates every day.
“We don’t really know from one month to the next. The stock market is up and down every day. (But our money managers) are in the process of narrowing down our options,” she said.
A significant portion of the Retirement Fund’s money came from investments on the stock market, but Troy-Rucker said they also have substantial investments in mutual funds, treasury bills and even in the CNMI, like the Guma Hustisia complex in Susupe and their own building on Capitol Hill, two floors of which are being rented by the Public School System.
