FSM Trust Fund’s current balance is $284M

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PALIKIR, Pohnpei (FSM Information Services) — On March 5, 2020, the board of trustees of the FSM Trust Fund met in the State of Pohnpei with Maggie Ralbovsky, the investment advisor and chartered financial analyst from Wilshire Associates who has been providing innovative investment solutions and objective, independent investment advice to the FSM.

Ralbovsky demonstrated that, as of Jan. 31, 2020, the FSM Trust Fund had a total balance of $284.2 million compared to a balance of $266.9 million reported at the end of fiscal year 2019 (i.e. Sept. 30, 2019.) This represents a fiscal-year-to-date return of 5%.

Since 2011, the FSM Trust Fund’s investment gains has reached approximately $82 million. The rapid increase in the value of the FSM Trust Fund reflects the strong commitments from the executive and legislative branches to ensure the long-term financial prosperity of the FSM.

"While we are pleased with the investment results, we are mindful of the challenges and risks we are facing from multiple fronts, including the ongoing disruption caused by the Covid-19 virus, and long-term disruptions from climate change induced events,” said Iso Ihlen Joseph, chairman of the board of trustees.

The trustees of the FSM Trust Fund pose with investment advisor Maggie Ralbovsky.  FSM Information Services photo

Secretary of Finance and Administration Eugene Amor, added that "it is important for us fiduciaries of this FSM sovereign wealth fund to keep a long-term perspective without being distracted by near-term market volatilities. Long-term sustainable investment principles require us to continuously evaluate sound diversification alternatives and promote responsible investment strategies to ensure the long-term sustainability of our trust fund. “

The vice chairman of the board of trustees, Fabian Nimea, said “the FSM Trust Fund can [be a] leader among the Pacific Islands in impacting future investment initiatives of the companies we invest in. We can engage with all companies that we provide capital to in the collective effort to ensure continued progress in curbing climate change and promoting sustainable ocean economy.”

With these remarks, the board set its future initiatives in studying and promoting more sustainable investment strategies while managing near term market risks.

The FSM Trust Fund is a sovereign wealth fund that was created by the FSM Congress through the FSM Code Title 55, Chapter 12 (as amended by subsequent Public Laws). The investment advisor, Wilshire Associates, is based in California and is one of the world’s major investment advisory and management firms for large institutions.