Who did the FNM sell our entire NIB Portfolio to? Opposition Leaders refuse to say in their bid to BREAK NIB!!!
NASSAU| Minister for Social Services and Urban Renewal Hon. Keith Bell minced no words in Parliament on Monday as he laid his contribution to the budget debate 2024/25.
Minister Bell exposed how the FNM Government, led by Hubert Minnis and now Michael Pintard, sold off The National Insurance Board’s entire portfolio of shares in American companies.
Minister Bell told Parliament, “In 2020, the National Insurance Board made the decision to dispose of its entire portfolio of shares in American companies, a move that in hindsight appears to have been short-sighted and financially detrimental. NIB owned shares in Apple, Microsoft, Amazon and Cisco just to name a few.
“The market data since then shows a significant appreciation in the value of many of these shares, indicating that the decision led to considerable loss for the Fund,” Minister Bell said.
“The portfolio contained shares in some of the world’s leading companies, reflecting the high quality of the investments held. For example Microsoft Corporation has experienced remarkable growth. On July 1, 2020, Microsoft’s stock was valued at approximately $206. As of June 2024, Microsoft shares are trading above $330, marking an increase of over 60% since 2020. This growth trajectory underscores the financial loss incurred by the Fund due to the premature disposal of these high-performing shares.”
Further outlining how these bad decisions have proven to be a major loss for the Bahamas, Minister Bell presented more examples in the performance of the sold stocks.
“Another noteworthy example is Amazon.com Inc. On July 1, 2020, Amazon shares were valued at over $2,890. As of June 2024, Amazon’s stock is trading above $3,500, indicating an increase of nearly 21% since 2020. The decision to sell Amazon shares prematurely deprived the Fund of significant capital appreciation that could have strengthened its financial position.
“Alphabet Inc., the parent company of Google, is another major player in the portfolio. On July 1, 2020, Alphabet shares were priced around $1,435, and as of June 2024, they stand at over $2,500, reflecting an increase of more than 74%. This growth represents another lost opportunity for the Fund,” Minister Bell said.
Additionally, the portfolio included shares in leading companies such as Apple, Visa Inc., Johnson & Johnson, Berkshire Hathaway Inc., and Tesla Inc., all of which appreciated significantly after they were sold by the FNM.
He added, “And while they answer for the decision – I’m also curious as to who they sold them to? Who were the shares in Apple, Google, Microsoft and Tesla sold to?
“Madam Speaker, But make no mistake, the bad policies and recklessness did not end with Minnis; they are ingrained in the FNM approach and leadership. For a long time, the Free National Movement has criticised our fiscal position, and to his credit, the Member for Marco City has presented Bahamians with his economic plan for The Bahamas. And what a plan it is. If Minnis was version
1.0, then we are witnessing the relaunch of version 2.0, Minister Bell added.
We report yinner decide!
