Trust Fund Committee Reviews Investment Performance for July-September 2024 Period and Conducts Official Business

WASHINGTON, D.C. (January 9, 2025)– The Trust Fund Committee of the Trust Fund for the People of the Republic of the Marshall Islands (the Fund) conducted its Fiscal Year 2025 (FY 2025) first quarter meeting by teleconference on January 8 (Washington DC) and 9 (Majuro). The Committee reviewed the Fund’s investment performance from June 1 to September 30, 2024 – the last quarter of FY 2024, discussed the status of the transition to the 2023 Trust Fund Agreement, and was updated on the FY 2024 audit and annual report process.

For the July-September quarter, the Fund had a net asset value of $1,041,404,622 as of September 30. The Fund had a gain for the quarter of 5.91%, net of fees, compared to a benchmark of 6.58%. For FY 2024, the Fund had a gain of 21.97% compared to a benchmark of 25.38%. As of November 30, the most recent complete month reviewed at the meeting, the Fund had a net asset value of $1,238,107,273 and increased 1.97%, compared to a benchmark of 2.45%. The November total net asset value included a U.S. government contribution of $200 million received on October 8. The contribution is according to the 2023 Compact of Free Association, as Amended (Amended Compact). Since the inception of the Fund in 2004, the Fund has had an average annual rate of return of 6.82% (benchmark 7.21%).

The Committee discussed the establishment of Accounts 1 and 2 as required by the 2023 Trust Fund Agreement (the Agreement) that is a sub agreement of the Amended Compact. As of November 30, the net asset balance of Account 1 was $823,331,058 and the net asset value of Account 2 was $415,703,444. The Fund’s Investment Adviser, Mercer, is currently in the process of establishing the separate investment accounts based on Committee decisions and actions. The accounts are sub accounts of the Fund as reported in the previous paragraph.

The Committee also discussed the potential FY 2025 distributions to the Government of the Republic of the Marshall Islands (RMI government) according to the Agreement’s Article 17 regarding Sector and Individual Support Distribution and Article 18 regarding Extraordinary Needs Distribution. Government to government consultations are pending on FY 2025 individual distributions.

The Committee was informed of the start of the FY 2024 audit and annual report process with a presentation by the Fund’s independent auditor, Baker Tilly and the Fund’s Executive Administrator.

The next quarterly Committee meeting will take place in late March or early April 2025.