TUVALU TRUST FUND GOVERNANCE STRUCTURE

Roles of various entities within the TTF Structure

  1. Board of Directors
  • All powers of the Fund are vested in the Board of Directors who are responsible for the overall management and supervision of the Fund.
  • The Board has the final say on all matters before it and have approval powers on all policy matters before it.
  • The Board approves any agreements or arrangements with other Governments or International organisations.
  • The Board is also authorised to establish its own rules and procedures provided they do not intervene with or contradict any of the provisions of the DEED.
  • The Chairman of the Board is automatically the Minister of Finance of the Tuvalu Government.
  1. Advisory Committee
  • Advices the Government of Tuvalu on economic matters including policies and their social and economic impacts on the people of Tuvalu.
  • The Advisory Committee also carries out analysis of the National Budget and based on such analysis, advice on actual revenue and expense as well as estimates and assumption made in reaching such estimates.
  • The Advisory Committee must submit to the Government of Tuvalu via the Board of the TTF an interim and a final report annually of their findings.
  1. Investment Committee
  • This is made up of the Investment Advisors to the Directors.
  • They are the Investment experts who gives investment advice to the Board
  • The Investment Committee is also responsible for producing the Statement of Investment Objectives and Policies (SIOP), to be approved by the Board.
  • Currently there are only two advisors, one each to the Australian and the New Zealand Directors, however there are moves to also have one for the Tuvalu Director.
  1. Fund Managers
  • The Board approves any number of Fund managers who will be responsible for the day to day investments of the Fund’s resources.
  • Fund managers must act within guidelines provided by the Board, (i.e. SIOP).
  • In carrying out their tasks they must also provide periodic reports to the Board on the performance of the Investments.
  1. Fund Monitor
  • This is one entity established by the Board within its mandate to manage the funds responsibly.
  • Under the terms of the Fund Managers they are required to report on their own performance as well as that of the investments, so for transparency, it was decided that it would be better for an independent entity to report on the Fund managers’ performance.
  • The Fund Monitor provides a watching brief over the Fund Managers performances as well as market conditions and the strategies to suit the market conditions.
  • This has become the technical eyes of the Board and keeps both the Fund Managers and the Investment Committee in check.
  1. Secretariat
  • With all these entities making up the TTF broad structure, the Secretariat plays the role of coordinating the various functions and activities.
  • It provides a portal for the flow of information and amalgamation of actions borne out of the decisions of the various parties.
  • Provides periodic reports and updates to the Government of Tuvalu via the Minister of Finance who is also the Chairman of the TTF Board.
  • Keeps Board Directors update with the latest information pertaining to the Trust Funds, including but not limited to Investment reports, Fund Valuations and Maintained Value updates.