WASHINGTON, D.C. (June 10th, 2021)– The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its fiscal year 2021 (FY21) third quarter meeting on May 26th (EST) and 27th (Pohnpei) via videoconference.
The meeting covered the Fund’s investment performance for the January-March 2021 quarter as well as a current market update to May 2021 especially given the COVID-19 pandemic and the effect on the Fund as well as the global economy and financial markets.
For the January-March 2021 quarter, the Fund gained 3.82%, above the benchmark of 3.78%. The net asset value of the Fund was $933,850,563, preliminary and unaudited, as of 3/31/21.
As of 4/30/21, the last complete month of reporting, the Fund had a net asset value of $957,322,124, preliminary and unaudited. For the fiscal year to date (10/1/20-4/30/21), the Fund has gained 17.4%. The Fund’s Investment Adviser, Mercer Investments, LLC, and the Committee are monitoring the Fund to ensure the asset allocation is in line with the long-term investment objectives of the Committee-approved Investment Policy Statement.
The Committee approved the Investment Policy Statement with updated capital market assumptions. The Committee approved Funston Advisory Services LLC to conduct the independent and objective external evaluation after a competitive RFP process. Mercer also made a presentation on the Fund’s environment, social and governance (ESG) exposure.
The next quarterly meeting will take place in late August or early September 2021.
As stated in Article III of the Agreement Between the Government of the United States of America and the Government of the Federated States of Micronesia Implementing Section 215 and Section 216 of the Compact, as Amended, Regarding a Trust Fund, the purpose of the Fund is to contribute to the economic advancement and long-term budgetary self-reliance of the Federated States of Micronesia by providing an annual source of revenue after fiscal year 2023. For more information on the Fund, visit the official website at https://fsmcfatf.com/.