WASHINGTON, D.C. (April 22nd, 2021)– The Trust Fund Committee of the Trust Fund for the People of the Republic of the Marshall Islands (the Fund) conducted its fiscal year 2021 (FY21) second quarter meeting on April 6th (EDT) and 7th (Majuro) via videoconference.
The meeting covered the Fund’s investment performance for the October-December 2020 quarter as well as a current market update, reviewed the FY20 Annual Audit, and conducted other business.
For the October-December 2020 quarter, the Fund gained 13.18%, above the benchmark of 12.13%. The net asset value of the Fund was $601,882,362 as of 12/31/20. The Fund received a scheduled contribution from the U.S. government of $19,528,450 on 10/6/20. The Fund also received a contribution of $5 million on 4/5/21 that, in accordance with Section 216(b) of the Amended Compact, was recorded as an RMI government contribution. This contribution was for a compensatory adjustment for the adverse financial and economic impact resulting from the effect of Title IV of the Compact of Free Association Act of 1986 upon Title Two of the Compact, consistent with the Compact of Free Association Act of 1986, and its successor, the Compact of Free Association Amendments Act of 2003.
As of 2/28/21, the last full month of performance reported to the Committee by the Fund’s Investment Adviser, Vanguard Institutional Advisory Services, the Fund’s net asset value was $614,883,787 preliminary and unaudited. The Fund has had positive performance of 15.63% fiscal year-to-date (10/1/20 – 2/28/21) compared to a benchmark of 13.78%.
The Fund’s independent auditor, Baker Tilly, presented the annual audit document. The audit was conducted in accordance with U.S. Generally Accepted Accounting Standards (GAAS) and U.S. Generally Accepted Government Accounting Standards (GAGAS). No deficiencies, material weakness or noncompliance were identified according to these standards. As of the end of fiscal year 2020, the Fund’s restricted fiduciary net position was $514,429,278 compared to $434,666,826 for fiscal year 2019. The Fund had a weighted annual rate of return of 11.6% for fiscal year 2020.
The Committee reviewed and approved the issuance of an RFP for potential firms regarding services to conduct an objective and independent evaluation of the Trust Fund, and approved a private equity investment to help meet the previously approved private equity class target allocation as provided in the asset allocation of the June 2020 Investment Policy Statement.
The next quarterly meeting will take place in late May or early June 2021.