Trust Fund Committee Reviews FY 2023 Performance and Business as it Prepares for Future Implementation of Trust Fund Agreement

WASHINGTON, D.C. (April 9, 2024)– 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 (FY 2024) second quarter meeting by teleconference on March 21 (Washington DC) and 22 (Majuro). The Committee reviewed the Fund’s investment performance from October 1, 2023, agreed to approve the fiscal year 2023 Annual Report by e-mail, received a presentation of the independent audit, discussed the FY 2024 distribution monitoring and performance reporting, and discussed future planning including possible investment policy and potential administrative structures and functions to facilitate eventual implementation of the 2023 Trust Fund Agreement when it enters into force.

For the October-December quarter, the first quarter of FY 2024, the Fund had a net asset value of $710,987,227. The Fund had a gain for the quarter of 9.1%, net of fees, compared to a benchmark of 10.0%. As of February 29, the most recent complete month reviewed at the meeting, the Fund had a net asset value of $735,668,314. For FY 2024 performance from October 1 to February 29, the Fund has gained 11.2%, net of fees, compared to a benchmark of 13.2%. Since the inception of the Fund in 2004, the Fund has had an average annual rate of return of 6.6% (benchmark 6.9%). The Fund’s Investment Advisor, Mercer, also noted that the Fund received $9,625,355 in contributions to date for FY 2024 from the United States (U.S.) government. The contributions were invested per the Investment Policy Statement.

The Committee reviewed and subsequently approved the FY 2023 Annual Report. For FY 2023, the Fund ended the fiscal year with a restricted fiduciary net position value of $683,873,694 and a weighted annual rate of return of 14.6%. Over the past 20 years, the Fund had a total of $369,723,017 in contributions from the U.S. government (74.6% of contributions), the Republic of the Marshall Islands (RMI) government (14.6% of contributions), and Taiwan (10.8% of contributions). The Fund gained a total of $314,150,677 on those contributions over the 20-year term—for every dollar invested, the Fund earned 0.84.5 cents.

The Fund’s independent auditor, Baker Tilly, presented the FY 2023 audited financial statements. The audit was conducted according to U.S. and U.S government auditing principles and standards to include Generally Accepted Government Auditing Standards. There were no material weaknesses or deficiencies sited by the audit and the audit was completed on schedule. The Committee approved a resolution, by e-mail on March 28, accepting the annual report and the transmittal of the annual report and audited financial statements to the U.S. and RMI governments.

The Committee discussed the FY 2024 distribution and the monitoring and performance requirements as agreed to in past Committee resolutions, consistent with the 2003 Trust Fund Agreement and based on the 2003 Fiscal Procedures Agreement. The Committee also discussed potential plans and strategies to transition to the 2023 Trust Fund Agreement when it enters into force, including possible investment policy options, possible accounting and administrative changes, and accountability requirements. The Committee agreed to continue technical discussions before the next Committee meeting that may take place in late May or June 2024.

The Committee noted that on Saturday, March 9, 2024, President Joseph Biden signed into law, H.R. 4366, the Consolidated Appropriations Act, 2024 (Public Law 118-42), which included the Compact of Free Association Amendments Act of 2024 approving the 2023 U.S.-RMI Trust Fund Agreement.  However, the RMI government must complete its domestic processes and the U.S. and RMI governments must exchange notes for the 2023 U.S.-RMI Trust Fund Agreement to enter into force.  Find the full text of P.L. 118-42 here.

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