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International Financial Institutions

Over 70 years’ experience in asset management with nearly US$200 billion in assets under management

International Financial Institutions (IFIs) have to manage substantial asset portfolios which typically consist of contributions and funds received from other sources to fund their ongoing operations and liabilities. In line with their public sector mission, their investment objective often prioritizes safety and liquidity while earning a competitive return. The World Bank Treasury has more than seven decades of experience managing similar portfolios with a track record of outperforming policy benchmarks while controlling downside risks in a disciplined fashion.

Nearly 30 years of experience in consulting and building human capital

Since the 1990s, the World Bank Treasury has provided capacity building services to public sector asset managers. These engagements are led by experienced investment management professionals with senior-level experience in finance. While we customize engagements to individual member needs, most engagements cover the areas described below.

Governance and institution building

We assist IFI policymakers with strengthening their institution’s governance structure through defining policy objectives and ensuring that an investment policy, investment guidelines, and a strategic asset allocation are in place. These tools help align objectives with investments and control risks within acceptable levels while targeting a competitive market return on assets.

 

Developing internal strategic asset allocation capabilities

We assist with building in-house capacity to develop policy proposals for strategic asset allocation and translating the SAA into replicable benchmarked portfolios. We provide members with proprietary in-house software, the Asset Management Workbench, to develop and stress test the SAA, and provide technical training on both the theory and use of the model.

Expanding internal asset management capacity

We assist portfolio managers with expanding asset management skills across broad fixed income sectors, including money market instruments, high grade government and agency bonds, interest rate futures, and agency mortgage-backed securities.

Risk management and analytics

We help develop a multi-faceted risk management function with robust quantitative and qualitative risk indicators encompassing market, credit and operational risk.

Engaging external partners

We assist with engaging external service providers, including asset managers, global custodians, and systems providers. We also help with developing capacity to oversee an external asset management program.

Building legal expertise in investment transactions

We provide legal training to in-house lawyers relating to sovereign immunities and protecting IFIs interests under contractual arrangements for securities lending, futures transactions, external asset manager programs and private sector custodial services.