WASHINGTON, D.C. (December 21, 2021)– The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its fiscal year 2022 (FY22) first quarter meeting on December 14 (EST) and 15 (Pohnpei) via videoconference.
The meeting covered the Fund’s investment performance for the July-September 2021 quarter and a current market update to December 2021, including the effect of the COVID-19 pandemic on the Fund as well as the global economy and financial markets.
For the July-September 2021 quarter, the Fund gained 0.33%, net of fees, below the benchmark of 0.74%. The net asset value of the Fund was $993,354,747, preliminary and unaudited, as of 9/30/21. September 30 also marked the end of fiscal year 2021. For the fiscal year, the Fund gained 21.84%, net of fees, the highest annual growth rate the Fund has achieved since inception in 2004.
For October 2021, the last complete month of reporting, the Fund had a return of 2.6%, net of fees, below the benchmark of 2.8%, and had a net asset value of $1,056,010,214, preliminary and unaudited. Also, on October 4, the Fund received a scheduled contribution of $36,239,040 from the U.S. government per the Compact of Free Association, as Amended. The funds were invested per the Investment Policy Statement formerly decided on by the Committee. 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 was informed of the beginning of the fiscal year 2021 audit process conducted by the Fund’s independent auditing firm, Baker Tilly, further discussed Committee interest in an environment, social and governance policy for investments, discussed the next steps for the independent external evaluation of the Fund, reviewed a proposed annual calendar of meetings and activities, and discussed future considerations for the Fund.
The next quarterly meeting will take place on/about March 23-24, 2022.
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/.