Pohnpei, Federated States of Micronesia (December 12, 2019) –
Today, the newly confirmed FSM Secretary of Finance and Administration, Mr. Eugene Amor, announced that the FSM Trust Fund ended Fiscal Year 2019 with a total balance of $267 million, including the state accounts established by Public Law 18-107. The Trust Fund achieved a return of 5.1 percent for the year, net of all fees and expenses. The Fund increased $54.4 million from a year earlier, reflecting contributions of $42.8 million and investment return of $11.6 million during the fiscal year.
The investment return includes dividends, interests and market value appreciations and are net of fees and expenses. “I am pleased with the Trust Fund’s achieved result this year in light of the significant volatility experienced in the capital markets. I attribute this strong performance to the disciplined and diversified approach that was employed by the Trust Fund, under the leadership of the newly established Board of Trustees chaired by Mr. Ihlen Joseph, with the assistance of our Investment Consultant Ms. Maggie W. Ralbovsky of Wilshire Associates. ” said Secretary Amor. “As the Trust Fund reaches a significant institutional investor status, a number of additional investment strategies will become available to help enhance risk adjusted returns. The Board is currently working with Wilshire Associates to evaluate and implement these strategies.”
The FSM Trust Fund’s investment adviser, Wilshire Associates, is a major institutional investment advisory firm located in California. Secretary Amor congratulates the investment consultant, Ms. Ralbovsky, who was named the Investment Industry’s Most Influential Investment Consultant for 2019 and a finalist for the “Consultant of the Year” award by the prestigious Chief Investment Officer magazine. FSM looks forward to further collaboration with Wilshire Associates to grow the FSM Trust Fund to a level that can provide lasting benefits for future generations.
The FSM Trust Fund is a sovereign wealth fund that was created by the Congress through the FSM Code Title 55, Chapter 12 (as amended by subsequent Public Laws). FSM Congress has appropriated a total of $210 million into the FSM Trust Fund since 2014.
