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    Thursday, April 27, 2017-6:53:43A.M.

     

     

     

     

     

Regional News

Federated States of Micronesia trust fund: $94.12 million

POHNPEI (FSM Information Services) — The FSM secretary of the Department of Finance & Administration, Sihna Lawrence, has announced that the FSM trust fund ended calendar year 2016 with a total balance of $94.12 million, including the state accounts established by Public Law 18-107.

The trust fund national account achieved a total return of 9.81 percent for the year. The FSM Congress in 2016 through appropriations, contributed to the trust fund, a total of $19.26 million (inclusive of FY 2016 and FY 2017 appropriations), and investment gains were over $7 million as of the year ending Dec. 31, 2016. Management fees and expenses totaled around 0.38 percent of the overall fund.

“I am very pleased with the income of the Fund in 2016, achieving returns above other similar funds,” said Secretary Lawrence.

The FSM national government has made significant contributions to the trust fund over the last three years as it has become clear that the Compact trust fund will not provide sufficient income in 2024 to replace the compact sector grant funding levels. The decision to invest in the FSM trust fund, rather than the Compact trust fund, is based on the greater flexibility it provides for spending of the Fund income from 2024 onwards.

The FSM trust fund was created by Congress in 1999. The fund’s investment adviser is Wilshire Associates Inc. The custodian of the fund is the Bank of New York.