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Public hearing held for Bill 283


by Clynt Ridgell, KUAM News
Thursday, May 08, 2008

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A public hearing was held for Bill 283 this morning. The proposed legislation sponsored by Office of Finance & Budget chairman Senator Eddie Baza Calvo (R) aims to authorize the Government of Guam Retirement Fund's board of trustees to invest retirement assets at cost in exchange traded funds (ETFs). The Retirement Fund, along with investment consultant Terry Dennison, supports the legislation, stating ETFs could provide significant benefits to the Retirement Fund because it would have the same risk and return value whether you invest the funds in the United States or abroad.

"It would have exactly the same risk, high and return potential, high as that asset class. This is simply a vehicle, it is not an asset class in it of itself; it's a tool," said Senator Calvo.