PALIKIR, Pohnpei — On January 19, 2026 His Excellency Wesley W. Simina, President of the Federated States of Micronesia and T.H. Aren B. Palik, Vice President of the Federated States of Micronesia, met with representatives of Cambridge Associates and the FSM members of the Compact Trust Fund Committee to review the performance, outlook, and long-term strategy of the Compact Trust Fund, underscoring the Simina-Palik Administration’s commitment to intergenerational sustainability and fiscal responsibility.
During the meeting, President Simina and Vice President Palik were briefed that the Compact Trust Fund closed out fiscal year 2025 standing at the $2 billion mark, hitting a significant milestone in the Fund’s growth and management. Updated modeling projections presented during the session indicate that, if no significant and frequent distributions or withdrawals are made, the Trust Fund has the potential to grow to over $9 billion by the end of the current Compact period, positioning it to eventually replace Compact sector grants during a transition and provide financial stability for the nation.
The discussion highlighted the Administration’s strategic decision last year to transition the Fund’s investment advisory services from Mercer to Cambridge Associates, a move aimed at aligning investment strategies with the FSM’s long-term national interests.
President Simina emphasized that the Trust Fund is not only about financial resources, but a cornerstone of the nation’s future.
“This Trust Fund represents our responsibility to future generations of Micronesians,” President Simina said. “Our priority is long-term sustainability, ensuring that long after Compact grants end, the FSM will have the capacity to support the five governments’ operational budgets, essential services and national development through prudent and disciplined management of this Fund.”
The FSM members of the Compact Trust Fund Committee and Cambridge Associates reaffirmed their commitment to safeguarding the Fund through disciplined, long-term investment strategies designed to balance growth with stability, while protecting the Fund from premature withdrawals that could undermine its future potential.
The local FSM Trust Fund balance is reported at nearly $600 million. Unlike the Compact Trust Fund, the FSM Trust Fund is financed through domestic sources and represents an additional layer of savings for the country’s fiscal resilience.
The President reiterated that the Simina-Palik Administration remains focused on preserving both Trust Funds as legacy assets for future generations of the FSM that will help secure economic resilience, national self-reliance, and opportunities for generations to come.
Present in the meeting were the FSM members of the Compact Trust Fund Committee – Former President Manny Mori, Ms. Anna Mendiola, and Mr. Rensley Sigrah – Executive Administrator of the Compact Trust Fund Mr. Tony Costanzo, and Cambridge representatives Mr. Paul Liu and Mr. Dan Smith and staff.
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