The Capacity Building, Asset Management and Advisory Services Pilot Program (CAsA) focuses on enhancing the capacity to manage foreign currency-denominated portfolios, as well as capital markets and product development of borrowing member countries.
Through customized technical assistance, specialized training, and courses the program seeks to foster the development of institutional capacity under a cost recovery model.
Currently, to participate in the program, the IDB and the institution sign an agreement to manage for a competitive fee a portfolio mandate. The fee covers the IDBs cost of managing the portfolio and the remaining fees covers the capacity building and advisory services.
The Program has two work lines included in the business strategy developed by Management, these are:
- Asset Management conducts such activities per a discretionary mandate, wherein the IDB works with the participant as they define investment objectives, portfolio type, investment guidelines, and a benchmark before initiating any investments.
- Capacity Building and Advisory Services assist in strengthening or developing the institutional capacity of IDB borrowing member countries through the transfer of specific knowledge and practices related to financial capital markets and the Management of foreign currency-denominated financial assets and instruments by leveraging IDB's own internal asset management capabilities and capital markets expertise.
Over 60 years of institutional experience in global capital markets and well-established capabilities managing high-grade, fixed income portfolios on a global basis.
In recent years, the IDB managed around $40 billion considering its own and third-party funds. The Bank offers technical expertise in financial instruments across multiple sectors such as: Governments, Inflation Linked, Sub-sovereigns, Supranationals, Agencies, and High-Grade Corporates among others.
IDB’s top professional staff from our region has a profound understanding of our member countries’ needs.
To help develop or strengthen the institutional capacity of our region’s Central Banks and Official Institutions in the management of their international investment portfolios.
In line with these organizations, the IDB maintains a clear focus on the preservation of capital and liquidity in all its investment activities. IDB’s Asset Management services will follow discretionary mandates in areas in which it has expertise, taking into consideration multiple risk and return factors.
The IDB will work with participants as they define investment guidelines and objectives, applicable benchmarks, and broad portfolio considerations. Strategies could focus on a specific type of asset or follow a diversified mix of fixed income asset types as described above.
The CASA Program allows participants to gain access to top experts in the broad range of portfolio management functions in the main languages of the region, promoting the adoption of robust asset management practices through additional training and knowledge-sharing activities.
Efficient portfolio construction and diversification on multiple levels (i.e. asset class, sector, counterparty, manager) are the main benefits participants can expect through practical real-world applications.
As the practical side of CASA's overall capacity-building objective, participants would be able to see how experienced investment professionals manage their portfolios under their own risk appetite and investment guidelines. They would also receive: Quarterly market and portfolio updates through virtual communication, and one on-site visit to present Annual Investment Results.
The more efficient management of portfolios denominated in foreign currency (such as international reserves, public wealth funds, etc.) in Latin American and Caribbean countries has a significant impact on economic growth, development, as well as stability and financial resilience of the region. For example, well-managed foreign reserve portfolios serve as a financial cushion, protecting regional economies from internal or external shocks. Likewise, well-managed wealth funds provide additional income that increases national wealth or allows for generational transfers.
The CAsA Program helps develop or strengthen the institutional capacity of the Central Banks and Official Institutions of our region by taking advantage of the IDB's internal asset management, capital markets development and technical assistance capabilities.
Capacity Building and Advisory Services has developed a business model that brings together experts internal and external to the bank to help strengthen or develop the institutional capacity of IDB borrowing member countries through the transfer of knowledge and practices related to the needs specific to the participants.
The Capacity Building, Advisory and Asset Management (CAsA) Program focuses on improving the capacity to manage foreign currency-denominated portfolios, as well as the development of capital markets and products of borrowing member countries. Through personalized technical assistance, specialized training and courses, the program seeks to foster the development of institutional capacity under a cost recovery model.
Currently, the standard solution of the CAsA Program operates with a cost recovery methodology for the participant through the delegation of portfolio management to the IDB. Management fees cover the cost of administration of the mandate and the Capacity Building and Advisory Services provided to the participant.
The CAsA Program offers a variety of products, including technical assistance and capacity development through missions, scholarships, training (virtual and in-person), and advanced analytics. An example of this technical assistance includes determining the structural position of portfolios through a Strategic Asset Allocation that appropriately reflects the participant's institutional objectives or supporting the development of the liquidity policy of national deposit insurance portfolios.
A key step is the exhaustive evaluation of the participant's current and future status, as well as the corresponding gap, which in turn determines the work plan to be developed during their participation in the CAsA Program. The latter is delivered through in-person or virtual technical missions, specialized fellowships with IDB experts at headquarters, virtual training sessions, external courses, and access to sophisticated quantitative analytical tools delivered through a web infrastructure.
Advisory support will be available to CAsA Program participants and will be aimed at helping them identify needs within the context of their institutional strategy and supporting them in creating conceptual frameworks, processes, technical knowledge/experience and robust analytical tools.
The Research Department of the Federal Reserve Bank of Atlanta publishes a series of working papers to disseminate the research of staff economists and visiting scholars, and to stimulate professional discussion and exploration of economic and financial topics.
The aim of economic research at the ECB is to provide a sound conceptual and empirical basis for policy formulation and to improve policy communication to markets and the public.
Over 60 years of institutional experience in global capital markets and well-established capabilities managing high-grade, fixed income portfolios on a global basis.
In recent years, the IDB managed around $40 billion considering its own and third-party funds. The Bank offers technical expertise in financial instruments across multiple sectors such as: Governments, Inflation Linked, Sub-sovereigns, Supranationals, Agencies, and High-Grade Corporates among others.
IDB’s top professional staff from our region has a profound understanding of our member countries’ needs.
To help develop or strengthen the institutional capacity of our region’s Central Banks and Official Institutions in the management of their international investment portfolios.
In line with these organizations, the IDB maintains a clear focus on the preservation of capital and liquidity in all its investment activities. IDB’s Asset Management services will follow discretionary mandates in areas in which it has expertise, taking into consideration multiple risk and return factors.
The IDB will work with participants as they define investment guidelines and objectives, applicable benchmarks, and broad portfolio considerations. Strategies could focus on a specific type of asset or follow a diversified mix of fixed income asset types as described above.
The CASA Program allows participants to gain access to top experts in the broad range of portfolio management functions in the main languages of the region, promoting the adoption of robust asset management practices through additional training and knowledge-sharing activities.
Efficient portfolio construction and diversification on multiple levels (i.e. asset class, sector, counterparty, manager) are the main benefits participants can expect through practical real-world applications.
As the practical side of CASA's overall capacity-building objective, participants would be able to see how experienced investment professionals manage their portfolios under their own risk appetite and investment guidelines. They would also receive: Quarterly market and portfolio updates through virtual communication, and one on-site visit to present Annual Investment Results.
The more efficient management of portfolios denominated in foreign currency (such as international reserves, public wealth funds, etc.) in Latin American and Caribbean countries has a significant impact on economic growth, development, as well as stability and financial resilience of the region. For example, well-managed foreign reserve portfolios serve as a financial cushion, protecting regional economies from internal or external shocks. Likewise, well-managed wealth funds provide additional income that increases national wealth or allows for generational transfers.
The CAsA Program helps develop or strengthen the institutional capacity of the Central Banks and Official Institutions of our region by taking advantage of the IDB's internal asset management, capital markets development and technical assistance capabilities.
Capacity Building and Advisory Services has developed a business model that brings together experts internal and external to the bank to help strengthen or develop the institutional capacity of IDB borrowing member countries through the transfer of knowledge and practices related to the needs specific to the participants.
The Capacity Building, Advisory and Asset Management (CAsA) Program focuses on improving the capacity to manage foreign currency-denominated portfolios, as well as the development of capital markets and products of borrowing member countries. Through personalized technical assistance, specialized training and courses, the program seeks to foster the development of institutional capacity under a cost recovery model.
Currently, the standard solution of the CAsA Program operates with a cost recovery methodology for the participant through the delegation of portfolio management to the IDB. Management fees cover the cost of administration of the mandate and the Capacity Building and Advisory Services provided to the participant.
The CAsA Program offers a variety of products, including technical assistance and capacity development through missions, scholarships, training (virtual and in-person), and advanced analytics. An example of this technical assistance includes determining the structural position of portfolios through a Strategic Asset Allocation that appropriately reflects the participant's institutional objectives or supporting the development of the liquidity policy of national deposit insurance portfolios.
A key step is the exhaustive evaluation of the participant's current and future status, as well as the corresponding gap, which in turn determines the work plan to be developed during their participation in the CAsA Program. The latter is delivered through in-person or virtual technical missions, specialized fellowships with IDB experts at headquarters, virtual training sessions, external courses, and access to sophisticated quantitative analytical tools delivered through a web infrastructure.
Advisory support will be available to CAsA Program participants and will be aimed at helping them identify needs within the context of their institutional strategy and supporting them in creating conceptual frameworks, processes, technical knowledge/experience and robust analytical tools.
The Research Department of the Federal Reserve Bank of Atlanta publishes a series of working papers to disseminate the research of staff economists and visiting scholars, and to stimulate professional discussion and exploration of economic and financial topics.
The aim of economic research at the ECB is to provide a sound conceptual and empirical basis for policy formulation and to improve policy communication to markets and the public.
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