Trust Fund Committee Conducts Third Quarter Meeting and Update of Trust Fund Performance to April 30th, 2019

WASHINGTON, D.C. (May 16, 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) third quarter meetings on March 13th (Washington DC) and 14th (Majuro), 2019.

The meeting covered the Fund’s investment performance for the January-March 2018 quarter as well as the April-early May 2019 period.

For the January-March quarter, the Fund gained 8.4%, net of fees, and had an ending net asset value of $415,817,733 (preliminary and unaudited). The increase was due to gains across all asset classes that helped to make up for most of the losses experienced during the October-December 2018 quarter.

As of April 30th, the Fund was up a further 2.47%, net of fees, and had a total net asset value of $426,093,610 (preliminary and unaudited). For the fiscal year to the end of April, the Fund is up 1.53%. The Fund did experience volatility in the first half of May due to the U.S.-China trade issues and the possible repercussions on U.S. and global economic performance. The Fund’s Investment Adviser, Vanguard Institutional Advisory Services, is monitoring the situation and not recommending any asset allocation changes.

The Committee also briefly discussed the status of addressing the distribution policy and other practical considerations regarding the Fund for the post FY23 period.

The next quarterly meeting will take place in Honolulu in early September 2019.

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.

 

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