WASHINGTON, D.C. (January 2nd, 2020)– The Trust Fund Committee of the Trust Fund for the People of the Republic of the Marshall Islands (the Fund) conducted its fiscal year 2020 (FY20) first quarter meeting on December 17th by teleconference.
The meeting covered the Fund’s investment performance for the July-September quarter as well as an update to the end of November.
For the July-September quarter, the Fund gained 0.87%, net of fees, and had an ending net asset value of $434,473,019 (preliminary and unaudited). The increase was due to gains in all asset classes except for international private equity that posted a slight loss. The portfolio was impacted by volatility that occurred during the quarter. For the fiscal year (ending September 30th 2019), the Fund had a preliminary annual performance rate of 3.17%, net of fees. For the October-November period, the beginning of FY20, the Fund gained 4.16%, net of fees. The Fund ended November with a net asset value of $472,364,339, preliminary and unaudited.
The Committee reviewed the beginning of the audit process with Baker Tilly, the Fund’s auditor, and reviewed the Annual Report process. The completion of both documents is expected by March 31st, 2020.
The U.S. government approved an additional contribution to the Fund of $5.0 million in response to Section 108(b) of the Compact of Free Association, as amended (U.S. Public Law 109-188). The contribution will be contributed as a Republic of the Marshall Islands (RMI) contribution per Section 216(b) of the Amended Compact. To date for FY20, the U.S. government contributed $18,645,000 on October 1st, 2019 and the RMI government contributed $250,000 on October 22nd, 2019.
The next quarterly meeting will take place in March 2020.
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 Republic of the Marshall Islands when annual grant assistance under the Compact expires after fiscal year 2023. For more information on the Fund, visit the official website at https://rmicfatf.com/.