FSM Trust Fund Committee Conducts Annual Review

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WASHINGTON, D.C. (September 10th, 2019) – The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its fiscal year 2019 (FY19) fourth quarter meeting on September 6^th in Honolulu.

The meeting covered the Fund’s investment performance for the April-June quarter as well as an update to the end of July. The meeting also included an education session.

For the April-June quarter, the Fund gained 3.2%, net of fees, and had an ending net asset value of  $684,414,562 (preliminary and unaudited). The increase was due to gains across all asset classes, particularly in U.S. and global public equity asset strategies, the fixed income asset strategy, and the private equity asset strategy. For July, the Fund gained 0.2%, net of fees, ending with a net asset value of $685,808,588 (preliminary and unaudited). For the fiscal year-to-date (October 1, 2018 to July 31, 2019) the Fund has gained 2.7%, net of fees.

The Committee approved a fiscal year 2020 operating budget and a service agreement with Bookminders for accounting services for a one-year period.

Trust Fund Committee members acknowledged the potential for the historic meeting of the three freely associated states Presidents with U.S. President Donald Trump at the White House in May and Secretary of State Mike Pompeo’s visit to the Federated States of Micronesia in August may impact the Fund. The Committee discussed future Fund issues to include clarifying roles and responsibilities of the Trust Fund Committee and Original Party governments (United States and Federated States of Micronesia governments). They also discussed distribution policy, payment of expenses after September 30^th, 2022, timing of distributions, and the accountability framework for future distributed funds.

The education session also included presentations and discussions on investment fee reporting, and Investment Adviser and Committee roles and responsibilities for Money Manager identification, selection, and monitoring.

Office of Insular Affairs Director Nik Pula of the U.S. Department of the Interior (DOI) chaired the meeting. The other U.S. Members were Suzanne Lawrence of State and Phil Maestri of Education. The FSM members were Sihna Lawrence and Alex Narruhn. Doug Domenech, DOI Assistant Secretary, Insular and International Affairs, attended the meeting.

The next quarterly meeting will take place by teleconference in November or December 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. For more information on the Fund, visit the official website at https://fsmcfatf.com/.  

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