OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs: Financial Assessment 1 DEPARTMENT OF BUDGETARY AND FINANCIAL SERVICES NOVEMBER 2008.

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OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs: Financial Assessment 1 DEPARTMENT OF BUDGETARY AND FINANCIAL SERVICES NOVEMBER 2008

2/4/20162 What is covered in this presentation? I. Historical Background and Current Financial Situation II.Financial Performance Benchmark III. Recommendations

2/4/20163 I Historical Background and Current Financial Situation OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs

2/4/20164 Historical Background OAS Capital Fund for Fellowships, Scholarships and Training Programs Initially established by resolution AG/RES (XXVII/97). The Capital Fund received US$5,000,000 as a capital contribution pursuant to CP/RES.831 in Purpose Support human resource development in member states. Align the development objectives and priorities of the OAS adopted in the strategic plan of CIDI. Invite the member states and permanent observers to make voluntary contributions. Promote private-sector donations to the Capital Fund. Ensure the long-term financial stability of the OAS initiatives. OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs

5 Current Financial Situation OAS Capital Fund for Fellowships, Scholarships and Training Programs

2/4/20166 II Financial Performance Benchmark OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs

2/4/20167 Financial Performance Benchmark OAS Capital Fund for Fellowships, Scholarships and Training Programs OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs

2/4/20168 Financial Performance Benchmark OAS Capital Fund for Fellowships, Scholarships and Training Programs OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs Current Investment Strategy vs. Investment Scenario assuming ROWE Fund Strategy

2/4/20169 Financial Performance OAS Capital Fund for Fellowships, Scholarships and Training Programs CURRENT INVESTMENT STRATEGY: Advantages Good asset protection that guaranties capital preservation. Capital investments can easily be accessible. Low transaction and maintenance cost. Disadvantages Ensures lower return on investments. Not designed for long term growth investment strategy. OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs

2/4/ III Recommendations OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs

2/4/ Strategic alternatives and Next Steps OAS Capital Fund for Fellowships, Scholarships and Training Programs Recommendations Promote the existence of the Capital Fund to further the OAS mandates and to acquire contributions from member states and permanent observers, as well as private-sector donations through strategic partnerships with 501(c)3 organizations, like the Trust for the Americas. Develop a disbursement policy in line with a projected disbursement schedule to then establish an investment strategy. Investments should be diversified among instruments. Invest in high quality securities in order to reduce risk. OAS CAPITAL FUND for Fellowships, Scholarships and Training Programs