In his report, Trust Fund Chairman and Minister for Finance, David Adeang said it is exciting to see a $28 million growth in the Fund, an increase from $56 million in the 2017 financial year.
He said this is continuing to improve the ability of the Fund to generate future investment earnings and a future source of revenue to the Republic of Nauru.
The minister tablled the audited annual accounts for the year ending 2018 in Parliament last month.
Contributions received by the Fund were from the Government of Nauru (GON) and development partners including the Government of Australia (GOA) and Government of China (Taiwan).
Minister Adeang thank the Government of New Zealand (GONZ) for contributing to the Fund in the 2018 financial year as their way of acknowledging the 50th anniversary of Nauru’s independence.
“During the 2018 financial year, the GON contributed $14.797 million to the Fund resulting in total contributions, from establishment to 30 June 2018, of $47.132 million.”
“Our development partners have contributed the following amounts to the Fund since establishment: GOA $12.068 million, GOC (Taiwan) $10.635 million and GONZ $1.855 million,” Adeang said.
He added that the GONZ is to continue their association with the Fund in future years through additional contributions and as a future representative on the Fund’s Committee.
The Nauru Trust Fund has also successfully transitioned from Stage 1 to Stage 2 of the investment strategy during the 2018 financial year, resulting in investments being more illiquid in a diversified portfolio.
“This stage will continue for the next 4 to 15 years with the aim of increasing the growth assets through contributions and reinvestment of earnings to provide greater returns for the Fund. To ensure best practice and transparency the Committee is committed to working with our external advisors, investment managers and executive administrators to improve the processes and practices of the Fund,” Adeang said.