Yesterday’s guest speaker of the Rotary Club of Saipan meeting at the Hyatt Regency, he said that “it would not be wise for the Fund to take the risk of putting all its eggs in one basket.”
Asked if they plan to invest in China, he replied: “China posted about 10 percent more compared to the U.S. stock exchange but the stock market volatility is also higher.”
He said the Fund also has investments in Australia, Europe and other places.
The Fund suffered blows especially in 2008 with the financial meltdown in the U.S., he added.
“The downturn in history is not new but the Retirement Fund has got a long-term perspective to recover,” he said.
Aguon said Fund needs about $860 million to be fully funded, and are already 40 percent of the way toward reaching that goal.
He said by 2045, the Fund may be able to triple its investment portfolio which is currently spread out among common stocks, fixed income, hedge funds and the money market.
Aguon said the Fund is conducting a new asset liability study for 2010 to determine how the assets are allocated and whether to maintain them or not.
The Fund is also working on plans to be able to collect the over $200 million in retirement contributions owed by the CNMI government, he added.
Insurance coverage continues
Aguon also assured Retirement Fund beneficiaries that insurance coverage is being continued despite the cancellation of the insurance coverage from the NetCare insurance carrier in December last year.
Aguon said on Jan. 1, the Fund awarded Individual Assurance Company a contract as its new life insurance carrier.
