MISSA investments rally in the past three months
posted 06/02/09
Stocks have been rallying hard since hitting multi-year lows in early March 2009 and this may be an indication that the financial sector and world market are close to stabilizing. But for the Administration, the road to recovery is still far from over.
Since the onset of FY 2009, the market value of MISSA’s investments outside the country has dropped by $5.01 million, bringing down MISSA’s total investments to $54.81 million as of May 31, 2009. This includes BOMI/MISC stocks and BOMI TCDs of $12.83 million. MISSA’s total investments peaked in October 2007 when its market value reached $66.6 million.
The first eight months of FY 2009 had been a rollercoaster ride for MISSA investments. The biggest monthly loss was felt in October last year as its market value declined by $6.48 million and dropped further by $1.97 million in the following month. In December, it rallied back with an increase of $1.07 million but the gain was short-lived. The January-February results continued to be dismal as it shrunk further by $5.49 million. By end of March, it started to turn around with a gain of $1.62 million and rallied further in April and May with additional gains of $3.53 million and $2.73 million, respectively.
As of May 31, 2009, MISSA’s net assets totaled $59.4million, down by $3.8 million or 6% from the start of the fiscal year.
Contributions for the first eight months of FY 2009 totaled $9.1 million while benefit payments and administrative expenses amounted to $9.0 million and $0.6 million, respectively, for the same period.
Despite the growing imbalance between collection and benefit payments/administrative expenses, the Administration continues to maintain a positive cash flow. The main revenue drivers include the continuous timely remittances of the RMI Government and collection of past due contributions from certain employers. The top 50 taxpayers have also consistently filed and paid their dues which comprise of about $80% of MISSA’s total revenues.
Much needed cash continue to flow in as the Administration received $293,783 in cash dividends from BOMI for calendar year 2008 while MalGov has paid a total of $665,000 since October 2008 in past due contributions.
The Administration’s tax officers and auditors, supported by its Legal Counsel, have doubled their efforts to continue their tax collection campaign to collect long, past due contributions and verify the correctness of quarterly returns filed with MISSA.
In the first eight months of FY 2009, a total of 23 promissory notes were signed by delinquent employers who entered into affordable payment arrangements while 69 cases were referred to the Legal Counsel. Consequently, a number of those referred to the Legal Counsel have settled partially their obligations with MISSA, and the balances covered by signed promissory notes.