Commodity funds play an important role in transforming depleting natural resources into permanent income and stabilizing fiscal budgets over commodity cycles.
The World Bank Treasury has helped equip governments with the tools to assess the impact of different spending rules and asset allocations relative to a country’s spending and saving objectives. These tools allow our partners to simulate alternative spending and savings rules over varying commodity price regimes and investment cycles to assess their robustness in meeting policy objectives.
The World Bank Treasury has also helped governments in setting up the governance and investment management infrastructure to manage a global multi-asset class portfolio using a combination of both internal and external portfolio managers. Most importantly, this work typically includes building internal capacity to model the appropriate strategic asset allocation for the funds, giving the government strong ownership of this important policy decision.
The team dedicated to the engagement would comprise Treasury practitioners, particularly from the team managing the World Bank’s Pension and Endowment funds, which are invested across all major public and private markets.
The focus of the work is on building internal capacity to anchor any use of external consultants and asset managers and typically covers the following areas: