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Micronesia and Marshall Islands Trust Funds

Micronesia and Marshall Islands · Australia and Pacific · Founded 2004 · Savings and future generations fund · Not an IFSWF member

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Focus

Micronesia and Marshall Islands Trust Funds: what it invests in

Financial services
Public equitiesFixed income

Geography Global

Scale

Micronesia and Marshall Islands Trust Funds: how big it is, and on what basis

USD 3.78B
Net assets or equityAs of

In US dollars: about USD 3.78B. Funds report in US dollars; sum of the two funds

FSM return FY2025 12.5%

Transparency

Micronesia and Marshall Islands Trust Funds: what it publishes

7.5 of 10 Band 4 of 5

Published 7 · Partly 1 · Not published 2

Our 10 item score. It measures what is public, not how well a fund is run.

Combined net assetsS7
USD 3.78B (February 2026)
As of
FSM fundS7
USD 2.08B
As of
RMI fundS8
USD 1.70B
As of
FSM return FY2025S7
12.5%
As of
RMI return FY2025S8
12.16%
As of
US contribution to RMIS4
USD 200M (October 2025)
As of
Transparency scoreS7
7.5 of 10
As of

At a glance. Two trust funds created under the Compacts of Free Association with the United States, one for the Federated States of Micronesia and one for the Marshall Islands. They pay an annual income to each government from fiscal 2024 onwards, mainly for education and health. Together they held about USD 3.78 billion at 28 February 2026: USD 2.08 billion for FSM and USD 1.70 billion for RMI. S7 S8 S5

Key points

  • FSM fund net asset value USD 2,075.9 million at 28 February 2026; RMI fund USD 1,704.0 million. S7 S8
  • Fiscal 2025 returns: 12.5 percent for FSM and 12.16 percent for RMI. S7 S8
  • FSM fund earned USD 901.8 million on USD 1,047.7 million of contributions from FY2004 to FY2025. S3
  • The United States paid USD 200 million into the RMI fund on 9 October 2025 under the 2023 Amended Compact. S4
  • The RMI committee approved a USD 32.5 million Individual Support Distribution for fiscal 2027. S1
  • Payouts depend on market returns; they are not fixed grants. S5

Interesting facts

  • Both funds are run from Washington, D.C., by committees with US and island members. S6 S1
  • The FSM fund crossed USD 2 billion at the end of fiscal 2025. S9
  • RMI splits its fund into Account 1 (USD 991 million) and Account 2 (USD 713 million). S8

Mandate and goals

Support economic development and long-term budget self-reliance by giving each government an annual income after fiscal 2023, with priority for education and health care. S5

  • Provide a lasting source of revenue for each government. S1
  • Fund education and health care priorities. S5
  • Grow the funds through market investment. S5
  • Spending rule: Annual distributions decided by each Trust Fund Committee under its Trust Fund Agreement and accounts structure S1 S3

How it invests

IndustriesFinancial services. Sector agnostic S7
Asset classesPublic equities, Fixed income S7
StagesPublic markets S7
GeographyGlobal. Geographic split not published S7
Direct / through funds / co-investNo / Yes / No S6 S9
Ticket sizeNot applicable: holdings and deal sizes are not published. S7
External managersCambridge Associates advises the FSM fund, replacing Mercer; external money managers S9
Co-investment programmeNone S7

Published criteria

  • Each Committee sets an Investment Policy Statement with its adviser. S1
  • Performance is reviewed against a benchmark each quarter. S7

Past investments

YearInvestmentTypeSectorStageAmount
2025US contribution to the RMI fund. Paid 9 October 2025 under the 2023 Amended Compact. S4State asset transferFinancial servicesNot statedUSD 200M
2004Cumulative contributions to the FSM fund. Paid in from FY2004 to FY2025. S3State asset transferFinancial servicesNot statedUSD 1,047.7M
2025FSM investment adviser mandate. Adviser appointed in place of Mercer. S9Fund commitmentMulti-sectorPublic marketsNot published

Case studies

RMI fund after the 2023 Compact S1 S8

  • What: The Trust Fund Agreement was updated in October 2023 and took effect on 1 May 2024, with new accounts and US contributions.
  • When: 2023 to 2025
  • Size: USD 200M US contribution
  • Why: To keep revenue flowing to the Marshall Islands after the earlier grant period ended.
  • Outcome: Fund grew to USD 1.70B by February 2026 and set a USD 32.5M support payout for fiscal 2027.

FSM fund reaches USD 2 billion S9 S3

  • What: The FSM fund closed fiscal 2025 at about USD 2B after a 12.5 percent return.
  • When: FY2025
  • Size: USD 2B
  • Why: Earnings must replace expiring grants over time.
  • Outcome: Earnings of USD 901.8M on USD 1,047.7M paid in since FY2004.

Investment process

Each Trust Fund Committee runs, invests and distributes its fund and signs agreements with contributors. An Executive Administrator manages daily operations. S6

CommitteeRole
FSM Trust Fund CommitteeSix members from the US Interior, State and Treasury departments and FSM S6
RMI Trust Fund CommitteeManages the RMI fund under its by-laws and Trust Fund Agreement S1
  1. Contributions arrive under the Compact. S4
  2. Committee sets investment policy with its adviser. S1
  3. Quarterly review of performance against benchmark. S7
  4. Annual distribution decided and audited accounts approved. S1

How to approach: No intake for outside proposals; contact via each fund's website. S6

Size and returns

  • Headline size: USD 3.78B (Net assets or equity, as of 2026-02-28) S7 S8
  • In US dollars: about USD 3.78B. Funds report in US dollars; sum of the two funds
  • FSM fund, February 2026: USD 2.08B (Net assets or equity, as of 2026-02-28) S7
  • RMI fund, February 2026: USD 1.70B (Net assets or equity, as of 2026-02-28) S8
  • Return, Fiscal 2025, FSM fund: 12.5 percent (RMI fund 12.16 percent) S7
  • Size over time (USD billion): FSM, September 2025 1.95, FSM, February 2026 2.08, RMI, September 2025 1.39, RMI, February 2026 1.7 S3 S4 S7 S8

Leadership

NameTitle
Angel DemapanChair, FSM Trust Fund Committee; US Department of the Interior S6
Manny MoriMember, FSM committee S6
Anna MendiolaMember, FSM committee; President and CEO, FSM Development Bank S6
Rensley SigrahMember, FSM committee S6
Antone GreubelMember, FSM committee; US Department of State S6
Daniel HallMember, FSM committee; US Department of the Treasury S6

Governance and transparency

  • Legal basis: Compact of Free Association Amendments Act of 2003 (US Public Law 108-188) and each Trust Fund Agreement S1
  • Oversight: Trust Fund Committees with US and island government members; US Department of the Interior S5 S6
  • Auditor: Baker Tilly S8
  • Each fund is a non-profit corporation registered in the District of Columbia. S1
  • RMI by-laws were first approved in August 2005. S1

Transparency score: 7.5 of 10 (band 4 of 5). Our own 10-item rubric; see the methodology page.

  • Published: total assets, annual return, long-term returns, audited financial statements, governance and mandate documents, named leadership, regular reporting schedule. S1 S3 S6 S7 S8
  • Partly published: asset allocation. S7
  • Not published: geographic or sector split, holdings or deal list. S7

History

DateEvent
2003-12-17Amended Compacts signed into US law. S1
2004-04RMI fund incorporated. S1
2005-08-19RMI by-laws approved. S1
2023-10RMI Trust Fund Agreement updated. S5
2024-05-01Updated RMI agreement in force. S5
2025-09-30FSM fund reaches about USD 2B. S9
2025-10-09USD 200M US contribution to RMI. S4
2026-03FY2025 annual reports approved. S8
2026-08RMI fiscal 2027 payout approved. S1

For family offices

Government trust funds with no co-investment or outside proposal programme. They matter to investors as long-horizon allocators that hire advisers and managers. S7

Reports

Common questions

How big are the Compact Trust Funds?

About USD 3.78 billion combined at 28 February 2026: USD 2.08 billion for FSM and USD 1.70 billion for RMI. S7 S8

Who runs them?

A separate Trust Fund Committee for each fund, supported by an Executive Administrator. S6

What were recent returns?

12.5 percent for FSM and 12.16 percent for RMI in fiscal 2025. S7 S8

Are payouts guaranteed?

No. Payouts depend on market performance. S5

All sovereign wealth funds in Australia and Pacific · All savings and future generations funds · All funds in Micronesia and Marshall Islands

Sources

  1. S1Trust Fund for the People of the Republic of the Marshall Islands, website
  2. S2IFSWF, members list
  3. S3FSM Trust Fund, Performance at a Glance
  4. S4RMI Trust Fund Committee, fourth quarter FY2025 meeting release
  5. S5U.S. Department of the Interior, Office of Insular Affairs, Compact trust funds
  6. S6FSM Trust Fund, Trust Fund Management and Administration
  7. S7FSM Trust Fund Committee, second quarter FY2026 meeting release
  8. S8RMI Trust Fund Committee, second quarter FY2026 meeting release
  9. S9FSM Government, President Simina meets Compact Trust Fund Committee and Cambridge Associates

Disclaimer

Informational only. SovereignWealthFunds.com is an independent public-source reference. It is not affiliated with or endorsed by any fund named on it, and it is not investment, legal or tax advice. Figures are as of the dates shown next to them and may have changed; please read each fund's official pages, linked on its profile. To report an error, use the contact page. Copyright SovereignWealthFunds.com. All rights reserved.

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