WASHINGTON, D.C. (July 10, 2023)– The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its Fiscal Year 2023 (FY23) third quarter meeting on June 28 (EDT) and 29 (Pohnpei) via teleconference. The Trust Fund Committee Members reviewed the Fund’s investment performance from January to May 31, 2023, reviewed the draft Investment Policy Statement and discussed possible Committee action to prepare for fiscal year 2024.
As of May 31st, the Fund had a net asset value of $1,033,988,682. The Fund increased 3.8%, net of fees, (benchmark 4.1%) for the January-March quarter but was down 1.1%, net of fees, (equaling the benchmark) for May. For fiscal year 2023 to May 31st, the Fund had gained 8.8%, net of fees (benchmark 9.9%).
The Committee reviewed the draft Investment Policy Statement and determined to remain on the current investment glidepath until a new Trust Fund Agreement is approved by the U.S. and Federated States of Micronesia legislatures. The Committee also discussed possible actions to prepare for fiscal year 2024.
The next quarterly meeting of the Fund will take place in mid to late August for the fourth quarter of FY23.
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/.