Trust Fund Committee Reviews Investment Performance for January-May 2024 Period and Conducts Business to Implement the 2023 Trust Fund Agreement
WASHINGTON, D.C. (June 26, 2024)– The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its Fiscal Year 2024 (FY 2024) third quarter meeting by teleconference on June 18 (Washington DC) and 19 (Pohnpei). The Committee reviewed the Fund’s investment performance from January 1 to May 31, 2024, discussed steps to transition to the 2023 Trust Fund Agreement and approved a service agreement with Baker Tilly for the fiscal year (FY) 2024 and FY 2025 audits.
For the January-March quarter, the Fund had a net asset value of $1,162,036,177 as of March 31. The Fund had a gain for the quarter of 3.9%, net of fees, compared to a benchmark of 3.1%. As of May 31, the most recent complete month reviewed at the meeting, the Fund had a net asset value of $1,400,413,423 and increased 2.6%, equaling its benchmark. For FY 2024 performance from October 1 to May 31, the Fund has gained 10.5%, net of fees, compared to a benchmark of 11.3%. Since the inception of the Fund in 2004, the Fund has had an average annual rate of return of 6.0% (benchmark 6.5%). The Fund’s Investment Advisor, Mercer, also noted that the Fund received in May the remaining US Government contribution of $232,732,732. This is in addition to the $17,267,268 in US Government contributions received prior to May bringing the total to $250 million for fiscal year 2024. The contributions were invested according to the Investment Policy Statement.
The Committee determined to form a working group to facilitate the transition to the 2023 Trust Fund Agreement. Mercer also presented possible investment options to the Committee in light of the 2023 Trust Fund Agreement.
The Committee agreed to enter into a 2-year service agreement with Baker Tilly to conduct the FY 2024 and FY 2025 audits to comply with the 2023 Trust Fund Agreement.