1. Introducing the 2010 TRUST FUND ANNUAL REPORT

2. 2 "the majority of trust funds reviewed have supported programs and activities of material development importance, consistent with country and global development priorities and the Bank's mandate and strategies.” - Independent Evaluation Group (IEG) Trust Fund Support for Development An Evaluation of the World Bank’s Trust Fund Portfolio, March 2011 "the majority of trust funds reviewed have supported programs and activities of material development importance, consistent with country and global development priorities and the Bank's mandate and strategies.” - Independent Evaluation Group (IEG) Trust Fund Support for Development An Evaluation of the World Bank’s Trust Fund Portfolio, March 2011 Trust Funds – Delivering Development Results

3. 3 Bank-Executed TFs (BETFs) - used in support of the Bank’s work Recipient-Executed TFs (RETFs) - funds provided to a third party, normally in the form of project financing, and supervised by the Bank. IBRD/IDA TFs The Bank, as trustee, administrator, or treasury manager, provides an agreed set of financial and administrative services, managing donor contributions and transferring them to partner entities. FIFs IFC manages the funds in support of IFC advisory services and donor- funded investments. IFC TFs Definitions A New Typology – Reflecting Roles and Responsibilities

4. 4  At end-FY10, funds held in trust by the WBG amounted to US$26 billion  Contributions receivable stood at $12.4 billion *1 - the pilot Pneumococcal Advance Market Commitment (AMC) was created in FY09 *1 Strategic Context: Trust Fund Portfolio Trends WBG-administered Trust Funds Assets at end-FY10 (US$billions)

5. 5 Strategic Context: Trust Fund Portfolio Trends  In recent years, portfolio growth has largely been driven by Financial Intermediary Funds (FiFs). Cash Contributions to WBG-administered Trust Funds Cumulative FY02-FY10

6. 6 10 Largest Donors to WBG-administered Trust Funds Cumulative FY06-FY10 Strategic Context: Trust Fund Portfolio Trends The United Kingdom has accounted for 19% of total IBRD/IDA TF contributions during FY06-FY10 The United States has primarily contributed to FIFs and is the single largest contributor, accounting for 22% of total cash contributions to FIFs since FY06. Contributions from “emerging donors” - increased significantly over the last five years to US$610 million in FY10.

7. 7 WBG-administered Trust Funds: Annual Disbursements, FY06-FY10 (US$ billions) Strategic Context: Trust Fund Portfolio Trends  Disbursements grew from US$4.4 billion in FY06 to US$9.5 billion in FY10, an average annual growth rate of 21%

8. 8  Among the Bank’s Regions, the Sub-Saharan Africa Region continued to be the largest beneficiary of RETFs in FY10  Three sectors dominated the use of RETFs: public administration and law, education, and health and social services Regional Share of RETF Disbursements for FY10 Sector Allocation of RETF Disbursements for FY10 RETFs Where Does the Money Go? - $3.1 billion in FY10 RETF flows to fragile states have increased from just over US$630 million in FY05 to US$1.2 billion in FY10. RETFs have provided significant support in Afghanistan, Iraq, Kosovo, Southern Sudan, Timor Leste, and West Bank and Gaza, among others.

9. 9 BETFs S upporting the Bank’s Work Program Selected Business Activities Funded from Bank Budget and BETFs in FY10 (in US$ millions and percentage share of BETFs)  In FY10 BETF disbursements increased by 22% (over FY09) to US$560 million In FY10, BETFs funded: 53% of the Bank’s technical assistance expenditures 40% of knowledge management work and 28% of economic and sector work 56% of total Bank expenditures on external partnership.

10. 10 Financial Intermediary Funds  The majority of FIFs address Health (77%) and Environment and Climate Change (16%).  Country-level funding from the main health-related FIFs is primarily allocated to projects in IDA countries (78%)  Country-level funding from Environment and Climate Change FIFs primarily goes to IBRD countries (70%) FIF Transfers by Focal Area (percentage of total funds transferred) Recently established FIFs have helped address food security challenges (e.g., the Global Agriculture and Food Security Facility) and natural disasters (e.g., the Haiti Reconstruction Fund).