According to MPLT Chairman Alvaro A. Santos, “MPLT has met once and will meet again with the Commonwealth Health Center officials to discuss further the Electronic Health Report system project that CHC is pursuing.”
CHC is requesting a $1.5 million loan for this endeavor to be paid in 18 months through federal grants.
The project is an automated health information project for the CNMI which will include private clinics in the health information networking.
“We’ll be doing some due diligence work on the EHR project,” Santos told Variety.
MPLT, he added, is not yet considering revising its asset allocation.
Santos told Variety, “MPLT is not revising its asset allocation at this point in time. Unless and until MPLT engages in new investment exposure, strategies, vehicle choices or reaction to major market conditions would it call for a review on its asset allocation.”
Asked by Variety if the agency has decided in funding two asset classes — alternative investments and local high yield — Santos said these two remain unfunded.
“MPLT’s alternative investment, an investment vehicle included in the agency’s investment policy statement remains unfunded until such time that MPLT selects an asset class within its asset allocation to fund or shift funds from,” he said.
He said the Local High Yield or LHY program is still in MPLT’s investment policy statement with an earmarked amount still managed by one of MPLT’s fixed income managers.
Based on its strategic allocation, MPLT has allocated 10 percent for alternative investments and 5 percent for local high yield, which remain unfunded and now sit with the domestic fixed income core asset class.
The agency is also looking at replacing one of its asset managers due to non-performance.
Santos said MPLT has decided to look for a replacement for its large cap core money manager.
In previous board meetings, the agency pointed out that the best way to judge a performance of a money manager is on a three-year to five-year period.
MPLT board consultant Bruce M. MacMillan, in one of the earlier board meetings, told the trustees that the best way to judge a money manager’s performance is from three to five years. “It is not fair to judge the money manager over three-, six- and 12-month periods.”
Recently, the board has decided in favor of replacing its large cap core money manager.
Santos told Variety, “A selection from a pool is forthcoming.”
He said in an earlier interview that the agency will continue to monitor the portfolio and see where it is lucrative to invest.
MPLT is the agency tasked to hold and invest proceeds from public land leases, including proceeds from the lease of 7,203 hectares of Tinian public lands and 72 hectares of Tanapag Harbor and Farallon de Mendenilla.
With Morgan Stanley Smith Barney as its consultant, MPLT works with money managers Richmond, Mackay Shields, PIMPCO, SEIX, Lazard, Atalanta Sosnoff and Newgate.
