TTF Welcome

Talofa and welcome to the website of the Tuvalu Trust Fund. As Chair of the Board, I am honoured to welcome interested development partners, regional and international organisations, non-government organisations, individuals, and most importantly my fellow Tuvaluans. The TTF official website serves as a space that provides any information on the Fund.

After Tuvalu gained independence in 1978 it still had limited financial resources. With major efforts by the Government of Tuvalu, it managed to secure donor funding to establish the Tuvalu Trust Fund totalling AUD $26.4 million – which included contributions from the Governments of Tuvalu, Australia, New Zealand and the United Kingdom. On 16 June 1987 the International Agreement was signed, formally establishing the Fund with the objectives to cover budget shortfalls, underpin economic development and support financial autonomy for the country.

In 2021, the Fund managed to reach its AUD $200 million target, showcasing the significant growth of the Fund despite various challenges such as the Covid-19 pandemic. That same year, the Board further made a transformational decision to change the Fund’s investment strategy after almost a decade to Implemented Consulting. We welcome our new Implemented Consultant, Mercer Investments (Australia), to the TTF Team.

I would like to acknowledge my fellow Board Directors for their valuable contributions ensuring the smooth management of the Fund. Furthermore, acknowledging the continuous support from the TTF Advisory Committee (TTFAC) and the Investment Committee (IC) for their invaluable advice of the Fund. Also recognising the Secretariat for ensuring coordination of all TTF entities are appropriately handled.

The TTF continues to be an important financial asset. Going forward, it is the hope that the Fund will continue to grow and support the Government of Tuvalu and its people for many more years to come.

Tuvalu mo te Atua.

Established in 1987, the International Trust Fund Agreement was signed between the Governments of Tuvalu, Australia, New Zealand and the United Kingdom, the initial contributors to the Fund. In 2004, the United Kingdom withdrew from the Deed.

The Fund is managed and supervised by the Board of Directors, a representative from each respective country – Tuvalu, Australia and New Zealand. The Chair of the Board is automatically the Tuvalu Minister of Finance.

The Board is supported by two committees who have the same member composition as the Board:

  • Tuvalu Trust Fund Advisory Committee (TTFAC) – advises the Government of Tuvalu on the progress of the economy of Tuvalu and the effects of the Fund socially and economically on Tuvalu.
  • Investment Committee (IC) – investment advisors who advise the Board (and their respective Directors) on all investment matters of the Fund.

Mercer Investments (Australia) acts as the Fund’s Investment Implemented Consultant. Appointed in April 2022, its responsibility is to ensure that the capital of Fund is invested in a portfolio approved by the Board.

Lastly, the Board and its entities is supported by the Secretariat who include the Secretary, Assistant Secretary and Administration Officer. The Secretariat coordinates the various functions and activities of the Board and its entities.

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In addition to the TTF (formerly referred to as Account A), the Consolidated Investment Fund (CIF and formerly referred to as Account B) was created in 1991. It was established to act as a cash management buffer for the Government’s budgetary expenditure by holding unspent TTF distributions or excess Government revenue.

The International Trust Fund Agreement between the Governments of Tuvalu, Australia and New Zealand, stated under Article 2, the purpose of the fund is to contribute to the long-term financial viability of Tuvalu by providing an additional source of revenue for recurrent expenses of the Government of Tuvalu in order to:

  1. assist the Government to achieve greater autonomy in the management of its recurrent budget;
  2. enable the Government to maintain and if possible improve existing social infrastructure and services;
  3. enhance the capacity of the Government to receive and effectively utilize external capital development and technical assistance;
  4. enable the Government to meet long term maintenance and operating costs of social and economic infrastructure and services; and
  5. assist the Government in developing the economy of Tuvalu