Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia Conducts Fourth Quarter Meeting to Review Trust Fund Performance and Other Trust Fund Business

WASHINGTON, D.C. (September 9^th, 2020)– The Trust Fund Committee of the Trust Fund for the People of the Federated States of Micronesia (the Fund) conducted its fiscal year 2020 (FY20) fourth quarter meeting on September 2^nd (EDT) and 3^rd (Pohnpei) via videoconference.

The meeting covered the Fund’s investment performance for the April-June 2020 quarter as well as a current market update given the COVID-19 pandemic and the effect on the Fund as well as the global economy and financial markets.

For the April-June 2020 quarter, the Fund gained 11.52%, above the benchmark of 11.41%. The net asset value of the Fund was $738,692,359, preliminary and unaudited, as of 6/30/20. The gain was due to recovering financial markets, mainly driven by public equity fund increases.

The Fund continued on a growth path in July with a gain of 3.50% for the month to $764,274,406, preliminary and unaudited. For the fiscal year to date (as of 10/1/19), the Fund is up 5.60%. The gains since April have erased all prior losses that occurred during the fiscal year.

The Committee reviewed and approved a fiscal year 2021 investment expense and administrative budget, service agreement with Bookminders for accounting and bookkeeping services, contract extension of the Executive Administrator, and an analysis of the Fund’s legal requirements by Vory’s, Sater, Seymour and Pease LLP, the Fund’s legal counsel.

The Committee also had an education session featuring presentations on fiduciary responsibility presented by Vory’s.

The next quarterly meeting will take place in late November or early December 2020.

As stated in Article III of the Agreement Between the Government of the United States of America and the Government of the Federated States of Micronesia 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 Federated States of Micronesia by providing an annual source of revenue after fiscal year 2023. For more information on the Fund, visit the official website at https://fsmcfatf.com/.