Based on a recent investment report, the MPLT general fund portfolio was $62.472 million while the park fund portfolio was $8.069 million as of Oct. 31.
The general fund generated a $2.331 million gain in a one-month period while the park fund brought in $333,000 for the same period.
This was notwithstanding the $2.615 million in net contributions and withdrawals for the same period.
As of Sept. 30, the general fund portfolio suffered a $2.433 million loss. The park fund, on the other hand, sustained a $471,000 loss for the same period.
The MPLT was also seen moving its assets from its former large cap core manager Atalanta Sosnoff to Metropolitan West.
The MPLT board had decided to replace Atalanta with MetWest on account of its non-performance.
As of Oct. 31, there remained only $39,000 in Atalanta yet to be transferred, 73.4 percent of which was still in invested in international equities (in energy) while 26 percent was already in cash.
According to MPLT’s asset allocation, the following are the money managers and the assets under their management: MetWest, large cap core, 9.6 percent; Newgate, emerging markets, 2.8 percent; Lazard, emerging markets, 3.1 percent; MacKay Shields, convertibles, 9.9 percent; Richmond Capital, core fixed income, 43.3 percent; Seix, high yield fixed income, 6.5 percent; Templeton, 12.2 percent; CNMI advance loan, 6.4 percent; and NMHC loan, 6.1 percent.
Based on the investment consultant report, the general fund portfolio was underweighted by 10 percent in alternative investments and overweighted by 5 percent in local high yield.
As the MPLT has yet to decide whether to fund these investment vehicles, the money remained with Richmond Capital.
“A majority of the money is in Richmond until the MPLT changes the policy,” reported consultant Dan Roland to the trustees during MPLT’s Nov. 18 board meeting.
Richmond was overweighted by 10.8 percent with its strategic allocation pegged at 45 percent.
Whether the agency would be making modifications to its investment policy, MPLT board chairman Alvaro A. Santos told Roland via teleconference, “We’ll be taking up that issue at a later time.”
Santos said the board would inform Roland of its decision and would ask for his recommendation.
In the meantime, the board also decided to hold off moving about $2 million from Richmond to Seix.
Santos told Variety, “We are just planning for that. It’s not conclusive.”
He said they would wait and see if Seix would be performing better.
In the last quarter, he said, Seix did not perform better than its benchmark.
During MPLT’s Nov. 18 board meeting, the trustees also expressed concern with the 13 percent or $779,000 of the $6.184 million in assets held by MacKay Shields sitting in cash when this should have been invested in the market.
In an interview, Santos said they were able to clarify that the value had already dropped from 13 percent to five percent from Oct. 31 to Nov. 18.
He said the manager could be holding it as it explored the market and waiting for a more lucrative buying and right timing.
As of Oct. 31, MPLT-general fund portfolio was $62,472,000: $6.009 million, in large cap core; $3.693 million, in emerging markets; $6.184 million, in convertible securities; $34.886 million, core fixed income; $4.074 million, in high yield; and $7.626 million, in international bonds.
The park fund portfolio was $8.069 million for the same period: $1.57 million, large cap core; $422,000, emerging markets; $825,000, convertible securities; $3.753 million, domestic fixed income; $778,000, high yield; and $721,000, international bonds.
