MISSA investments recover as FY 2009 ends
posted October 12, 2009
FY 2009 was a year full of uncertainties, but the Administration took a deep sigh of relief as it prevailed over its most grueling financial challenge in recent years.
The most recent investment performance report presented by Frank Armstrong, MISSA’s investment advisor, reflected a net investment gain of $2.035 million and a net internal rate of return of 4.39% for the twelve–month period ending September 30, 2009.
Although the amount is dwarfed by the much bigger gains of the Administration in 2006 ($5.37 million) and 2007 ($7.63 million), it boosted MISSA’s resolve to remain financially stable, even in the short term. This rally may also be indicative of a better investment outlook in the coming months. Some may even consider this as the beginning of the end of the global economic downturn that started in late 2007.
MISSA was not spared by the worldwide economic crisis as its investments dropped in value by as much as $8.50 million in FY 2008 and further, by another $12.278 million in the first five months of FY 2009. Consequently, these huge losses led to a big drop in MISSA’s net assets from $69.03 million as of the end of FY 2007, to $63.19 million a year later, and further to $58.61 million in mid-FY2009.
As recommended by its investment advisor, the Administration will not make any immediate changes in its present investment policies and will maintain its current allocation of 60% for equities and 40% for bonds/cash. The equity portfolio will remain prudent, widely diversified, and divided into 12 separate classes to reduce risk while achieving global market returns.
MISSA investments are spread over 20,000 companies in the U.S. and worldwide.