WASHINGTON, D.C. (April 3rd, 2019)– The Trust Fund Committee of the Trust Fund for the People of the Republic of the Marshall Islands (the Fund) conducted its fiscal year 2019 (FY19) second quarter meetings on March 28th, 2019.
The meeting covered the Fund’s investment performance for the October-December 2018 quarter as well as the January-February 2019 period, and a review of the Fund’s FY18 annual report and audit.
For the October-December 2018 quarter, the Fund lost 8.6%, net of fees, and had an ending net asset value of $383,716,006. Losses were due to volatility caused by U.S. and global economic and finance uncertainty, especially in late December. During the quarter, the U.S. government annual contribution, per the schedule of the Compact of Free Association, as Amended, was deposited in the amount of $17,708,850 on October 2nd, 2018. The Republic of the Marshall Islands government made a contribution of $250,000 on October 10th, 2018.
As of February 28th, the Fund had gained back most of the first quarter losses and was down 1.72%, net of fees, for the fiscal year-to-date (October 1st, 2018 to February 28th, 2019). The total asset value was $412,428,829 as of February 28th, 2019.
The Fund’s independent auditor, Baker Tilly, presented the Fund’s FY18 Audited Annual Financial Statements. The audit was conducted per U.S. Generally Accepted Auditing Standards (GAAS) and Generally Accepted Government Auditing Standards (GAGAS). There were no negative findings or disclosures identified in the audit.
The FY18 Annual Report was presented to the Committee. The Fund ended FY18 (September 30th, 2018) with a restricted fiduciary net position of $402,436,422 compared to $356,933,415 as of the end of FY17. The gain was due to investment earnings and the annual contributions from the U.S. government and Taiwan. The Fund had an annual weighted rate of return of 7.0% for FY18 compared to 14.1% for FY17. The Committee approved the Annual Report and authorized dissemination of the Annual Report and the audited financial statements to the respective governments. The full report and other information on the Fund may be accessed on the Fund website at https://rmicfatf.com.
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.