The Naoero Intergenerational Trust Fund (NTF) has surpassed the $500 million (US$357 million) mark within its first decade, exceeding the fund’s target for 2035 and marking a major milestone in the country’s efforts to build long-term financial security.
The Government of Naoero marked the milestone at the 41st gathering of the NTF, which was held as a special presentation on the fund’s progress instead of its usual quarterly meeting.
The event brought together public servants, community leaders and primary and secondary school students to hear about the performance and future of the fund.
President David Adeang, who chaired the presentation, described the milestone as a defining moment in Naoero’s drive towards economic security and national resilience.
“When we began this journey 10 years ago, we had a vision. We wanted to break the cycle of short-term economic dependence and build something lasting.
“Something that would continue to protect our people long after we had completed our own service to the nation,” Adeang said.
He said the fund was created as a national legacy for present and future generations.
“We wanted to create a national legacy that would belong not only to the people of today, the dei-Naoero today, but also to our children, our grandchildren and generations of dei-Naoero yet to be born,” he said.
The NTF was established in 2015 to reduce Naoero’s reliance on donor funding and provide long-term financial stability for future generations.
Adeang was Minister for Finance when the fund was established.
He said reaching more than $500 million (US$357 million) in its first 10 years reflected the discipline and commitment maintained by successive governments since 2015.
“Reaching $500 million (US$357 million) within the first 10 years is no small feat,” the Government said, describing the achievement as a demonstration of “discipline, foresight, unity and courage”.
The NTF has a governance structure designed to protect the fund from withdrawals that could undermine its long-term purpose.
Any withdrawal or movement of funds requires agreement from all four contributing partners.
The Government also acknowledged the continued annual contributions from Australia and New Zealand to the fund.
The Naoero Government allocates 10.1 percent of its annual budget to the NTF and has contributed 76 percent of the fund’s overall capital.
The Government said the milestone reinforces the fund’s role as a long-term financial asset intended to support the people of Naoero well beyond the current generation.
