The Tuvalu Trust Fund is an international sovereign wealth fund developed by Tuvalu, a small, central Pacific island nation, as a supplement to cover shortfalls in the national budget.
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In 1987, the Trust fund was established by international agreements between the government of Tuvalu and the international donors of Australia, New Zealand, and the United Kingdom. The initial amount invested by the latter three nations amounted to A$27.1 million.
Through successful investment abroad, the initial assets of A$27.1 million grew to A$66 million in 2000. This amount was achieved with the help of other international donors of Japan and South Korea. The government of the Republic of Tuvalu has set an "informal target" of A$100 million before it will stop reinvesting in the fund.
In order to avoid mismanagement and corruption that has plagued many other Pacific trust funds, the government established a management structure that includes:
The fund was established for the intended purpose of helping to supplement national deficits, underpin economic development, and help the nation achieve greater financial autonomy.
One important element of the fund in order to avoid overdrawing to fund unauthorised projects, is the "separation of fund capital from fund proceeds available for distribution."