WASHINGTON, D.C. (May 16th, 2019)– The Trust Fund Committee of the Trust Fund for the People of the Republic of the Federated States of Micronesia (the Fund) conducted its fiscal year 2019 (FY19) third quarter meetings on May 14th (Washington D.C.) and 15th (Pohnpei), 2019.
The meeting covered the Fund’s investment performance for the January-March quarter as well as the April-early May period.
For the January-March quarter, the Fund gained 7.2%, net of fees, and had an ending net asset value of $662,910,285 (preliminary and unaudited). The increase was due to gains across all asset classes, particularly in U.S., Non-U.S., and Global public equity asset strategies. Despite the gains, the Fund remains at a loss for the fiscal year-to-date of -2.9%.
Mercer, the Fund’s Investment Adviser, reported that the Fund was up in April but the monthly report was not yet final. The Fund also experienced volatility during the early part of May due to the U.S.-China trade issues and possible implications on U.S. and global economic performance. Mercer said that the asset allocation is designed to help experience gains in up markets and has diversification in fixed income and alternative investments to help cushion declines in down markets.
The Committee discussed further private equity fund investments per its Investment Policy Statement.
The Committee also briefly discussed the status of addressing the distribution policy and other practical considerations regarding the Fund for the post FY23 period.
The next quarterly meeting will take place in Honolulu in early September 2019.
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.