Published 18 July 2025
MISSA ENGAGES WILSHIRE AS NEW INVESTMENT ADVISOR
After a series of presentations by 6 bidders who responded to MISSA’s Request for Proposal (RFP), the MISSA Board finally picked Wilshire Advisors LLC as new Investment Advisor, to manage MISSA’s investments outside the country, effective July 1, 2025. Wilshire is represented by Maggie Ralbovsky, its Managing Director. Prior to the hiring of Wilshire, MISSA’s investments were being managed by Investor Solutions, Inc. (ISI) starting in November 2002. In 2023, ISI was subsequently absorbed by Wealth Enhancement.
Wilshire was founded in 1972 and has evolved from an investment technology firm into a diversified financial services company with $1.4 trillion in assets under advisement, including more than $121 billion in assets under management (as of June 30, 2024). Wilshire was a pioneer in providing investment consulting and advisory services to institutions and continues to provide consulting services to some of the largest institutions in the world.
Among dozens of clients in the Pacific, Wilshire also manages the retirement and pension Funds of the Republic of Palau Social Security Administration (ROPSSA), FSM Trust Fund and Government of Guam Retirement Fund.
MISSA’s business relationship with Wilshire started way back in 2015 when the Marshall Islands Retirement Fund was on the brink of insolvency caused by a series of withdrawals from the Trust Fund starting in 2010 that totaled $22.3 million. The withdrawals were the only option left for MISSA to ensure that benefit payments and administrative expenses were paid on time, as contributions remain constant while benefit payments continue to increase by an average of 6% annually. The gap has widened continuously over the years.
At that time, MISSA has initiated to have a bill passed by the Nitijela to amend the Social Security Act by increasing the contribution rate, reducing benefits, changing the normal retirement age and having the RMI Government appropriate an annual subsidy for MISSA. To support the proposed amendments, MISSA has engaged Wilshire to conduct an actuarial study to determine several re-structuring options that will correct the widening gap between contributions and benefits.
In 2016, Maggie and Ned Mcguirre, Wilshire’s chief actuary, were invited by MISSA to a 5-day Social Security Pension Workshop in Majuro to discuss social security and public pension challenges in the Pacific region. The workshop was also attended by MISSA’s counterparts in FSM and Palau, and several resource speakers from the Pacific Financial Technical Assistance Centre (PFTAC) and the International Monetary Fund (IMF). The SS pension workshop was a big success and paved the way to the enactment of Bill 75, also known as the Social Security (Amendment) Act 2017. Consequently, MISSA’s cash flow gradually improved and by 2019, contributions were able to sustain benefit payments and administrative expenses.
Wilshire has also conducted actuarial studies for MISSA in 2018 and 2021 and experience study in 2017. The actuarial study for 2024 is now underway.
With Maggie taking the helm of the Administration’s investments, the MISSA Board and management remain optimistic that the new approved asset allocation, Investment Policy Statement and more active management approach will result to higher returns and minimal risks.
As of the latest report from Wilshire (as of July 1, 2025), all transition from the previous investment advisor and custodian was completed successfully and MISSA did not lose out on the market rally of the last week of June 2025. MISSA’s portfolio has crossed $90 million, from $84.7 million as of January 1, 2025. This translates to an increase in market value of about $5.3 million (or about 6.24% return) in the first half of 2025.