The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its fiscal year 2018 fourth quarter meetings August 23rd in Honolulu, Hawaii. The meeting included a business meeting and an education session.
The business meeting covered the Fund’s investment performance for the April-June quarter and investment updates to July 31st. Mercer Investment Management, the Fund’s Investment Adviser, presented the Fund’s performance information and the economic, financial and market conditions for the time period. The Committee also approved an operating budget for fiscal year 2019, an investment expense reporting resolution, and an annual service agreement with the Fund’s accountant.
The education session topic was the Fund’s distribution policy for the post fiscal year 2023 time period when the Fund is to begin distributing funds to the Government of the Federated States of Micronesia according to the Trust Fund Agreement of the Compact of Free Association, as amended (U.S. Public Law 108-188). The Committee reviewed various distribution options and agreed further review and discussions were needed.
The Committee members represent the governments of the Federated States of Micronesia and the United States. The next quarterly meeting is scheduled to take place in November 2018.
As of June 30, 2018, assets of the Fund were valued at $617,439,001.
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.