Trust Fund Committee Reviews Investment Performance for October 2024 – February 2025, Reviews Audit and Annual Report, and Selects New Investment Adviser

WASHINGTON, D.C. (April 10, 2025)– The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its Fiscal Year 2025 (FY 2025) second quarter meeting on March 27. The Committee reviewed the Fund’s investment performance from October 1, 2024 to February 28, 2025. The Committee also reviewed the fiscal year 2024 Annual Report and Audit Report. As a result of a request for proposals process, the Committee selected a new Investment Adviser – Cambridge Associates LLC.

For the October-December quarter, the Fund had a net asset value of $1,707,873,201 as of December 31. The Fund had a loss for the quarter of -1.56% net of fees, compared to a benchmark of -1.59%. The Fund also received a scheduled U.S. government contribution per the 2023 Compact of Free Association, as Amended, in the amount of $250 million on October 8.

For February, the most recent complete month reviewed at the meeting, the Fund had a net asset value of $1,756,741,485 and gained 0.6% net of fees, above the benchmark of 0.2%. For the fiscal year-to-date (October-February), the Fund is up 1.3% net of fees, above the benchmark of 0.6%. Since the inception of the Fund in 2004, the Fund has had an average annual rate of return of 6.1% net of fees (benchmark 6.6%).

Baker Tilly, the Fund’s independent auditor, reviewed the fiscal year 2024 audit. There were no adverse opinions or findings. The fiscal year 2025 Annual Report was also reviewed by the Committee and approved. The Fund ended fiscal year 2024 with a restricted fiduciary net position of $1,484,244,836 and a weighted annual rate of return for the fiscal year of 17.3%. The Annual Audit and Report documents are available at: https://fsmcfatf.com/file-repository/.

The Committee also selected Cambridge Associates LLC as the Fund’s new Investment Adviser pending the signing of an investment management agreement. The selection was a result of a request for proposal process that began in November 2024. Mercer is the Fund’s current Investment Adviser.

The next quarterly Committee meeting will take place in June 2025.

For more information on the Fund, please visit the official website at https://fsmcfatf.com/. 

###