MISSA's offshore investments up by $12.7M in FY 2021

The latest investment performance report received by the Administration from its investment advisor, Investor Solutions, Inc. showed an increase in market value of $12.74 million in FY 2021, the equivalent of 21.92% time weighted return (net). This represents a 360-degree turn in comparison to the March 31, 2020 report when the market value dropped by as much as $10.5 million as a result of the COVID-19 pandemic.

As of September 30, 2021, the ending market value of MISSA’s investments outside the country totaled $72.60 million which is 24.4% higher than its balance a year ago. This big growth was also attributed to the $1.5 million additional investment in September 2021 to build up the Fund. It is important to note that from 2010 to 2016, a series of drawdowns from the Fund totaling $22.3 million were made as a result of the widening gap between benefits and contributions that caused MISSA to struggle with cash flow challenges. The Administration plans to add more to the Fund in the coming years to extend its financial horizon.

Likewise, MISSA’s local investments have also consistently gained positive returns. During the years ended September 30, 2020 and 2019, the total net increase in fair value of investments in the Marshall Islands Holdings, Inc. (MIHI), the sole shareholder of the Bank of the Marshall Islands, included $1.28 million and $2.35 million, respectively, of equity in the net earnings of MIHI.

MISSA’s investment in MIHI is accounted for on the equity method since the investment constitutes 36% ownership as of September 30, 2020 (and may have already increased to-date). As of September 30, 2020 and 2019, MISSA’s investments in MIHI amounted to $19.54 million and $18.74 million, respectively. During the same years, MISSA received cash dividend payments from MIHI of $480,830 and $500,133, respectively (all of these amounts were audited).

MISSA also has a $1.03 million investment in the Marshall Islands Service Corporation (MISCo), a subsidiary of MIHI.