WASHINGTON, D.C. (January 2nd, 2020)– The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its fiscal year 2020 (FY20) first quarter meeting on December 18th via teleconference.
The meeting covered the Fund’s investment performance for the July-September quarter as well as an update to the end of October.
For the July-September quarter, the Fund gained 0.75%, net of fees, and had an ending net asset value of $689,703,444 (preliminary and unaudited). The increase was due to gains in all asset classes except for slight losses in small/mid cap equities, emerging market equities and the hedge fund. The portfolio was impacted by volatility that occurred during the quarter. For the fiscal year (ending September 30th 2019), the Fund had a preliminary annual performance rate of 3.23%, net of fees. For October, the Fund gained 1.8%, net of fees. The Fund ended October with a net asset value of $736,715,202, preliminary and unaudited. The amount includes a scheduled U.S. contribution of $33,809,600 on October 1st, 2019.
The Committee reviewed the beginning of the audit process with Baker Tilly, the Fund’s auditor, and reviewed the Annual Report process. The completion of both documents is expected by March 31st, 2020. The Committee also reviewed total fund and asset category benchmarks, and the inclusion of attribution analysis in quarterly reports.
The next quarterly meeting will take place in March 2020.
As provided for under the Compact of Free Association agreements, as amended (U.S. Public Law 108-188), the Fund was established to contribute to the economic advancement and long-term budgetary self-reliance of the people of the Federated States of Micronesia when annual grant assistance under the Compact expires after fiscal year 2023. For more information on the Fund, visit the official website at https://fsmcfatf.com/.