The Republic of Nauru website has introduced a new section that provides full details on the set up of the fund, including its background and purpose.
The fund exists to benefit the people of Nauru by generating future investment earnings that can be used as revenue sources beyond 2035 if necessary.
The establishment of a trust fund was identified in the Nauru National Sustainable Development Strategy 2005-2025 to help stabilise the nation’s economy. Its core function is to replace or supplement so-called volatile, or potentially terminating, revenue streams such as dwindling phosphate royalties.
The fund is administered by a Trust Fund Committee, which is responsible for implementing investment strategies and overseeing assets management for the future benefit of Nauru.
Nauru has $10.2 million committed as its contribution to the fund in the 2017/18 Budget. This contribution, along with earnings and other donor contributions, is projected to increase the fund’s worth to almost $70 million by the end of the 2017/18 financial year.
Overall, the fund is on course to build a reserve capital of $400 million by 2036.
Money from the fund will be channelled into education, health, the environment and infrastructure to enhance the standard of living and quality of life of the people of Nauru.
More information about the trust fund can be accessed by clicking here: