PALIKIR, June 11th 2021 (FSMIS)—The Trust Fund Committee for the Trust Fund for the People of the Federated States of Micronesia (FSM), colloquially referred to as the Compact Trust Fund to distinguish it from the separate FSM Trust Fund, recently reported that its preliminary and unaudited asset value is $957,322,124.

In a June 10th, 2021 Press Release from the Compact Trust Fund Committee, it was noted that the Fiscal Year 2021 (FY21) third quarter meeting occurred on May 27th, 2021.

The meeting covered the Compact Trust Fund’s investment performance for the January-March 2021 quarter as well as a current market update to May 2021, given the COVID-19 Pandemic and the effect on the Compact Trust Fund as well as the global economy and financial markets.

For the January-March 2021 quarter, the Compact Trust Fund gained 3.82%, slightly above the benchmark of 3.78%. The preliminary and unaudited net asset value of the Compact Trust Fund was $933,850,563, as of March 31st, 2021.

As of April 30th, 2021, the Compact Trust Fund had a preliminary and unaudited net asset value of $957,322,124. From the start of FY21 to present, the Compact Trust Fund has gained 17.4%. The Compact Trust Fund’s Investment Adviser, Mercer Investments, LLC, and the Compact Trust Committee are monitoring the Compact Trust Fund to ensure the asset allocation is in line with the long-term investment objectives of the Committee-approved Investment Policy Statement.

The Committee approved the Investment Policy Statement with updated capital market assumptions. The Committee approved Funston Advisory Services LLC to conduct the independent and objective external evaluation after a competitive request-for-proposals (RFP) process.

Following the FSM National Government’s strategy to move into green climate investment portfolios, as announced by His Excellency David W. Panuelo, President of the FSM, and codified through Public Law 22-06, Mercer also made a presentation to the Board, outlining the Compact Trust Fund’s Environment, Social and Governance (ESG) exposures.

“Arguably the single-most significant isolated action our Nation has taken in tackling Climate Change—which aligns thematically with our environmental and conservation efforts through the Micronesia Challenge and Blue Prosperity Micronesia, and our ban on most forms of one-time-use plastics, including Styrofoam—was our Nation’s recent amendment to the FSM Trust Fund to recognize the existential threat of Climate Change, and mandate that its investments follow a sustainable development policy,” President Panuelo said.

“Yet, our sovereign FSM Trust Fund is presently approximately one-third the size of our Compact Trust Fund. Making the Compact Trust Fund green, too, would likely have as significant or more significant of an overall positive impact on our World’s environment. To the degree that it is practicable and lawful, I would encourage our Compact Trust Fund Committee, and our Joint Committee on Compact Review & Planning, to consider the actions we’ve taken to make our FSM Trust Fund green in their respective discussions on the Compact Trust Fund itself and for the ongoing negotiations regarding the Compact of Free Association, as Amended.”

Representing the FSM Government on the Compact Trust Fund are the Honorable Eugene Amor, Secretary of the Department of Finance & Administration, and Mr. Emanuel “Manny” Mori, Former President of the FSM.

The next quarterly meeting of the Compact Trust Fund Committee is intended to occur in late August or early September.

The financial details of this release, specific to the Compact Trust Fund, may also be found here: https://fsmcfatf.com/fiscal-year-2021-3rdqtrmtg/

Citizens, residents, and stakeholders interested in the Compact Trust Fund are encouraged to visit the Compact Trust Fund’s website at: https://fsmcfatf.com/