Published 11 January 2021
Market value of MISSA’s investments gained by
$6.5 M in Q4 of 2020 with an 11.19% return
MISSA’s offshore investments bounced back anew in the 4th quarter of 2020 with a gain of $6.5 million, bringing its total market value to $64.9 million as of December 31, 2020. The news about vaccine breakthroughs in early November and the result of the US election raised hopes that the world economy will gradually return to normal. This renewed optimism triggered a global market rally in almost all asset classes.
It is important to note that the Administration’s investments outside the country suffered a big blow when its market value dropped by $10.5 million during the peak of the COVID-19 pandemic in the early part of the year. By the end of September, it was able to fully recover from the loss and even registered a gain of $639 thousand for the fiscal year. The rally in the 4th quarter of 2020 further raised the Administration’s confidence that its investments will continue to generate positive yields in 2021 that are at par or possibly higher than global benchmarks.
A quick look back at the performance of MISSA’s investments since 2002 when Investor Solutions, Inc. was appointed as Investment Advisor shows its steady growth (see above comparative figures and graph) in almost two decades. From $23.7 million in November 2002, it has increased to almost three-folds by the end of 2020 despite the series of withdrawals from 2010 through 2016 that totaled $22.3 million. During this period, MISSA has incurred operational deficits due to the widening gap between revenues and benefit payments. The highest single year gain was recorded in 2019 when its market value increased by $7.9 million, with a net time weighted return of 15.15%.