Trust Fund Committee Reviews Investment Performance for January – May 2025, Continues Transition to 2023 Trust Fund Agreement and Approves Update of Investment Policy Statement

WASHINGTON, D.C. (June 27, 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) third quarter meeting on June 18 (Washington DC) and 19 (Majuro). The Committee reviewed the Fund’s investment performance from January 1 to May 31, 2025. The Committee also reviewed the transition to the 2023 Trust Fund Agreement and approved an update to the Investment Policy Statement.

For the January-March quarter, the total Fund had a net asset value of $1,221,366,613 as of March 31. The Fund had a gain for the quarter of 1.20%, net of fees, compared to a benchmark gain of 0.48%. Of the total, Account 1 had a net asset value of $811,542,357 and a gain of 1.18%, net of fees, compared to a benchmark gain of 0.38%. Account 2 had a net asset value of $409,824,256. Account 2 was initiated during the quarter, so no full quarterly reporting is available.

For May, the most recent complete month reviewed at the meeting, the Fund had a total net asset value of $1,272,148,150 as of May 31 and gained 2.38% fiscal year-to-date (October-May), net of fees, compared to the benchmark of 3.59%. Since the inception of the Fund in 2004, the Fund has had an average annual rate of return of 6.79%, net of fees (benchmark 7.16%). Account 1 had a net asset value of $845,259,911 and Account 2 had a net asset value of $426,888,239.

The Committee discussed the 2023 Trust Fund Agreement’s potential distributions. For the Agreement’s Article 17 Sector and Individual Distribution, the Committee noted that the US and RMI governments have agreed to a Memorandum of Understanding (MOU) regarding the distribution and the RMI government submitted an Individual Support Distribution proposal that will be reviewed by the Committee. For the Article 18 Extraordinary Needs Distribution, an MOU is pending US and RMI government agreement.

The Fund’s Investment Policy Statement was reviewed by the Committee with the Fund’s Investment Adviser, Mercer. The Statement included updated forward looking capital market assumptions. The Statement was approved by the Committee.

The next quarterly meeting is scheduled for September 2025.