Analysis of Pacific National Funds Investment Strategies and Results : Regional Comparative Study

At the 2019 Finance and Economic Ministers Meeting (FEMM), policy makers called for improved transparency of the Pacific trust funds’ management practices and investment results as a way to foster its improved management going forward. FEMM tasked the World Bank to undertake the study. Whereas significant progress has been made in establishing international best practices for sovereign or large public funds or both, trust funds in the Pacific are unique in making direct application of those practices challenging. Furthermore, the comparative analysis of the management practices and relevant performance metrics of Pacific trust funds are still lacking. FEMM’s objective for disclosing comparative analysis of Pacific funds investment results is to further stimulate collaborative discussion on how to continue to strengthen Pacific funds’ management and to inform the design and implementation of relevant reforms. In response to the FEMM request, this note will address the current vacuum of comparable information about Pacific funds’ investment management practices building on: (a) the World Bank engagements with the funds over the past five years; and (b) relevant information provided by those funds specifically for this analysis. This comparative study is meant to inform policy and decisionmakers governing the funds on the effect of their investment governance decisions on performance of the funds over the medium to long term.