WASHINGTON, D.C. (December 4, 2023)– The Trust Fund Committee of the Trust Fund for the People of the Republic of the Marshall Islands (the Fund) conducted its Fiscal Year 2024 (FY24) first quarter meeting on November 29 in Honolulu, Hawaii. The Trust Fund Committee Members reviewed the Fund’s investment performance from July-October 30, 2023, reviewed the beginning of the FY23 audit, and discussed the timing, status, and fiscal procedures related to the Fund’s previously approved distribution. The Committee also had preliminary discussions regarding future administrative structures and functions to facilitate future implementation of the 2023 Trust Fund Agreement, which would enter into force after legislative approval and other actions by the United States and Republic of the Marshall Islands.
For the July-September quarter, the last quarter of the fiscal year, the Fund had a net asset value of $682,341,829. While the Fund was down for the quarter (-3.40% net of fees compared to the benchmark of -3.56%), the Fund was up 15.03%, net of fees, for FY23 (benchmark 16.23%). The performance is preliminary pending the finalization of the annual financial statements and audit. For October, the most recent full month of reporting, the Fund decreased a further 2.63%, net of fees, (benchmark -2.83%) and had a net asset value of $663,772,708. Since inception, the Fund has had an average annual rate of return of 5.90% (benchmark 6.14%).
The Committee reviewed the beginning of the FY23 audit process with the Fund’s independent auditor, Baker Tilly. The audit work is on track to be completed by March 31, 2024.
The Committee discussed the status of the distributions authorized by the Committee at the September 28-29 meeting. The distributions are being made in equal installments of $1,617,615 per month. The Committee discussed the fiscal procedures to manage the distributed funds and the related reporting. The Committee agreed that further steps were needed to monitor distributions and fiscal procedures under the current distribution policy and fiscal procedures adopted by the Committee and discussed the need for the RMI to submit a monitoring and evaluation framework. The Committee also had preliminary discussions regarding future administrative functions and structures to facilitate future implementation of the 2023 Trust Fund Agreement once it enters into force.
The next quarterly meeting of the Fund will take place in March 2024 or possibly sooner to follow-up on Committee business.
As stated in Article III of the Agreement Between the Government of the United States of America and the Government of the Republic of the Marshall Islands 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 Republic of the Marshall Islands by providing an annual source of revenue after Fiscal Year 2023. For more information on the Fund, visit the official website at https://rmicfatf.com/.