OAS Capital Fund for Fellowships, Scholarships and Training Programs DEPARTMENT OF FINANCIAL AND ADMINISTRATIVE MANAGEMENT SERVICES - FEBRUARY 2010

What is covered in this presentation? I.Historical Background & Fund Balance II.Investment Policy and Performance III. Analysis and Recommendations

I Historical Background & Fund Balance

Historical Background OAS Capital Fund for Fellowships, Scholarships and Training Programs Established In 2003 by resolution AG/RES (XXVII/97). Initial capital contribution as established by CP/RES.831 in 2003: $5 mill. 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.

Fund Balance OAS Capital Fund for Fellowships, Scholarships and Training Programs

II Investment Policy and Performance

Investment Policy OAS Capital Fund for Fellowships, Scholarships and Training Programs Capital Fund assets are invested utilizing the same policy and investment objectives of the GS/OAS Treasury Fund. GS/OAS retains investment managers (Columbia Management) to provide advice and manage investments in accordance with the approved policy Treasury Fund Investment Objectives: Preserve Principal Maintain sufficient liquidity to meet forecasted cash needs Deliver competitive returns subject to prevailing market conditions Maintain a diversified portfolio in order to minimize credit risk

Investment Policy OAS Capital Fund for Fellowships, Scholarships and Training Programs Treasury Fund Investment Guidelines: Highest credit quality securities : AAA ratings Maturities distributed as follows with no more than 30-40% of the portfolio in each maturity category: » Short term ( days) » Medium term (Average weighted maturity of 2 years) » Long term (Average weighted maturity of 4 years) No more than 5% invested in any one issuer (excluding US government issues) No derivatives or exotic financial instruments

Investment Performance Benchmark OAS Capital Fund for Fellowships, Scholarships and Training Programs Leo Rowe Fund follows an investment policy of 50% Equity / 50% Bonds - Asset allocation at June 30, 2009 was: 59% Equity, 41%Bonds While equities present more risk they may yield a higher rate of return over the long term

III Recommendations

Recommendations OAS Capital Fund for Fellowships, Scholarships and Training Programs Develop strategic plan for the Capital Fund that would encompass short, mid-range and long-term goals. Create greater awareness of the Capital Fund and encourage external contributions through different channels including 501(c)3 organizations that would provide tax advantages to contributors. Fund goals will guide investment strategy.