WASHINGTON, D.C. (September 24th, 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) fourth quarter meeting on September15th (EST) and 16th (Pohnpei) via videoconference.
The meeting covered the Fund’s investment performance for the April-June 2021 quarter as well as a current market update to September 2021, including the effect of the COVID-19 pandemic on the Fund as well as the global economy and financial markets.
For the April-June 2021 quarter, the Fund gained 6.02%, below the benchmark of 6.31%. The net asset value of the Fund was $990,129,748, preliminary and unaudited, as of 6/30/21.
For August 2021, the last complete month of reporting, the Fund had a return of 1.7%, above the benchmark of 1.5%, and had a net asset value of $1,009,905,107, preliminary and unaudited. For the fiscal year to date (10/1/20-8/31/21), the Fund has gained 24.2%, above the benchmark of 24.1%. 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 fiscal year 2022 investment and administrative budget and approved a service agreement with Bookminders to provide accounting support services. Funston Advisory Services presented draft findings resulting from their external evaluation of the Fund. Mercer presented an education session regarding the Fund’s environment, social and governance (ESG) exposure and factors to consider for future investments and on investment asset allocation determination and considerations for the Fund’s future.
The next quarterly meeting will take place in late November or early December 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/.