Countries benefiting from windfall profits-whether from commodities or the sale of other national assets-may allocate a portion of these revenues into a long-term investment fund, typically for both income and intergenerational wealth transfer.  Such national endowment funds raise challenges both in designing the rules for capital accumulation and spending, and investing the assets to meet long-term return objectives.  RAMP supports these efforts typically through modeling fund rules and simulating various outcomes to help ascertain the robustness of the plan.  In addition, RAMP supports the investment management process through assistance in developing an appropriate strategic asset allocation and implementing this strategy—either via external asset managers and/or in-house management.  In addition, Treasury practitioners assist in developing specialist skills in accounting, legal advisory, information technology and internal audit to support fund management activities.

While individual engagements are customized to the client’s own objectives, a typical engagement would cover the following aspects:

• Modeling and designing rules for capital accumulation, spending and investment

• Developing the governance framework

• Developing an investment policy and strategic asset allocation framework

• Enhancing internal asset management capacity

• Engaging external partners and financial service providers.

• Communicating with private sector stakeholders

Central banks interested in learning more about the program should write via Jjohnsoncalari@worldbank.org .