A portfolio investment comprises a variety of financial assets including stocks, bonds, and cash equivalents, while also allowing for non-traditional assets like real estate and art. Investors should tailor their portfolios based on risk tolerance, time horizon, and potential sustainable investment opportunities, with a focus on Environmental, Social, and Governance (ESG) criteria. Fund managers play a crucial role in implementing investment strategies and ensuring adherence to ESG standards while managing risks associated with investments.

1.
PORTFOLIO INVESTOR

2. WHAT IS A PORTFOLIO INVESTMENT?
• A portfolio investment is a basket of financial assets /
investments such as stocks, bonds, commodities, currencies
and cash equivalents including mutual, exchange-traded and
closed funds.
• A portfolio can also consist of non-publicly
tradable securities, like real estate, art, and
private investments.
• Investors should construct an investment portfolio in
accordance with their risk tolerance and investing strategies.
• Securities can build a diversified portfolio, but [stocks, bonds,
and cash] are generally considered a portfolio's core building
blocks.

3. WHAT IS A PORTFOLIO
INVESTMENT?

4. Risk Tolerance on Portfolio Allocations
• Financial advisor/ Fund Manager can develop a
generic portfolio model for an individual, an
investor's risk tolerance should have a significant
impact on what a portfolio looks like.
Time Horizon on Portfolio Allocations
• Investors should consider how long they have to
invest while building a portfolio. Investors should
generally conserve Asset allocation as the goal
approaches.

5. INVESTMENT POLICY AND PROMOTION
• The World Bank Group helps countries
establish a competitive investment climate
that is favorable for attracting, retaining and
leveraging investment for business-led growth.
• The Investment Policy and Promotion (IPP) define their value
proposition as an attractive investment strategy. Investment
policies must be tailored to fit client needs be continually
revised to take into account economic and business changes.
• Investment Policy & Promotion (IPP) advisory services can
help countries attract, retain and grow foreign direct
investment (FDI) to link to the global economy, and maximize
the positive spillovers of FDI for the local economy.

6. SUSTAINABLE INVESTING OPPORTUNITY
• Sustainable investing opportunity directs investment capital
to companies that seek to combat climate change,
environmental destruction, while promoting corporate
responsibility.
• Environmental, social and governance (ESG) criteria are a set
of standards for a company’s operations that socially
conscious investors use to screen potential investments.
• ESG investing is referred to as sustainable investing,
responsible investing, impact investing, or socially responsible
investing.
• Renewable energy sources like solar, wind, and hydropower
are impacting our fossil-fuel–based economy and creating
investing opportunities.

7. SUSTAINABLE INVESTING OPPORTUNITY

8. • The World Bank Group (IBRD, IDA, IFC, MIGA and ICSID) works toward the
twin goals and Sustainable Development Goals and is the largest source of
development finance with over 70 years of experience.
• All sustainable development bonds are World Bank (IBRD) bonds. IBRD
lends to middle-income countries, issues bonds, and advises countries on
capital markets.
• Washington, D.C, April 4, 2019—The World Bank launched a Sustainable
Development Bond to draw attention to the challenge of plastic waste
pollution in oceans. This bond is part of an ongoing initiative by the World
Bank to engage with investors on highlighting the vital role of fresh and
saltwater resources.
• Washington, D.C., April 8, 2019— The World Bank Group and Japan’s
Government Pension Investment Fund (GPIF) have expanded their
partnership to grow markets for sustainable investing. GPIF asset
managers are strategically investing in Green, Social and Sustainable
Development Bonds issued by the World Bank
SUSTAINABLE INVESTING OPPORTUNITY

9. WHAT LONG TERM, SUSTAINABLE INVESTMENT
OPPORTUNITIES DO YOU WANT TO GAIN EXPOSURE TO?
• We believe EMDE’s offer the potential for competitive returns
over the long term, across a variety of countries and
industries, and represent an important diversifier for investor
portfolios. The below are reasons for Sustainable Investment
Opportunities
– Robust Debt Market
– GDP Growth in Emerging Markets Outpaces Developed Markets
– Diverse Emerging Market Equity Universe
– Growing Middle Class
– Improving Education
– Advances in Technology
– Growing Emerging Market Consumption

11. WHAT ASSET CLASSES ARE BEST TO
PROVIDE YOU THAT EXPOSURE?
Four Classes of Assets helps in building Portfolio Investment
• The four classes of assets are generally considered to be:
– Stocks or equities
– Fixed Income or bonds
– Money market or cash equivalents
– Real estate or other tangible assets
A portfolio that contains only one or two asset classes is not
diversified and may not be prepared to take advantage of
all the swings in the market. But diversification—or at
least the degree to which you diversify—is a decision that
depends to some extent on your goals and your tolerance
on risk.

12. • Stocks, equity funds, index funds and equity Portfolio
Management Services have a historic high risk-high return
profile and offer long-term growth to the portfolio.
• Debt instruments like bonds, FDs, debt funds generate a
regular return and provide income to the portfolio.
• Cash and equivalents like savings account balance, liquid
funds provide liquidity to the portfolio.
• Commodities like gold, silver, oil, etc and real estate provide
an inflation hedge to the portfolio.
• Assets like international funds, which have low correlation to
domestic markets, provide international diversification to the
portfolio.
WHAT ASSET CLASSES ARE BEST TO
PROVIDE YOU THAT EXPOSURE?

13. WHAT ASSET CLASSES ARE BEST TO
PROVIDE YOU THAT EXPOSURE?

14. FUND MANAGER
• A fund manager is responsible for implementing a fund's
investment strategy and managing its trading activities.
• Most fund managers are highly educated, have professional
credentials, and possess management experience.
• Incorporate ESG Factors into investment analysis and
decision-making processes.
• Fund Manager should fully review and incorporate ESG issues
into ownership of policies and practices, the investment style
before they consider investment decision in a fund.
• The main benefit of investing in a fund is trusting the investment
decision makers. Fund managers play an important role in the
investment and financial world. They provide investors with peace
of mind knowing their money is in the hands of an expert.

15. RESPONSIBILITIES OF FUND MANAGERS
• Fund managers primarily research and determine the best stocks,
bonds, or other securities to fit the strategy of the fund as outlined
in the prospectus, ESG Rules, then buy and sell them.
• The fund manager typically has a support staff of ESG analysts and
traders who perform some of these activities. Multiple managers at
some investment companies oversee client money, and each may
be responsible for a portion or make investment decisions via
committee.
• Fund manager prepare reports on how well the fund is performing,
developing reports for potential clients to know the risks and
objectives of the fund, and identifying good fits to the clients.
• “Complying with the Sustainable Development Goals will
enhance returns in the medium to long term.”

16. RESPONSIBILITIES OF FUND MANAGERS

17. WHAT FUND MANAGERS SHOULD YOU
COMMIT YOUR FUNDING TO?
• Fund managers are very important for the effectiveness and
performance of your funds and so it is relevant that you take
certain factors into consideration when choosing manager.
• The Portfolio must be handled as per the ESG Rules set out by
the governing body.
• Manager have to keep track of the Institutional investors, ESG
Analysis and Strategy in buying and selling of stocks?
• Monitoring the Portfolio on regular basis.
• Giving out yearly reports, gathering capital Information.
• The objectives of the investment must be converted as to the
investment decisions of the Portfolio.

18. HOW WILL YOU EVALUATE THESE FUND MANAGERS
FOR THEIR PERFORMANCE AND IMPACT?
• Besides extensive knowledge on the subject and relevant
market insights, a fund manager has to gather important
insights from the research team. Some considerations
include:
– Does follow an ESG benchmark or index?
– ESG information to identify investment risks and opportunities?
– Integration of ESG factors into investment decisions?
– Checking for shifts in the stock market to analyze the volume of the
shifts.
– An in-depth analysis of the yearly outputs of the companies that the
fund manager wants to take decisions on investing.
– How often the manager is willing to share the fact of a potential risk
with you?

19. RISK MANAGEMENT

20. WHAT RISKS SHOULD YOU CONSIDER?
1) Financial Risk Management
• IBRD, IDA stand-alone hedging products for risk management
are available to help clients manage their financial risks using
standard risk management techniques.
2) Disaster Risk Management
• The WorldBank Treasury offers financial solutions for
contingent, crisis financing and disaster-risk transfer
intermediation.
• Contingent & Crisis Financing – IBRD, IDA Development Policy
Loan with Catastrophe Drawdown Option (DPL Cat DDO)
• Disaster Risk Transfer Intermediation - Catastrophe Bonds,
Derivatives, Insurance & Reinsurance.

21. WHAT RISKS SHOULD YOU CONSIDER?

22. • Investments always have several real world impacts that can be
positive or negative (for example generate corporate and income
taxes, support employment, create discrimination or be inclusive,
etc.) and are intertwined with long term prosperity.
• Asset owners and the investment chain more generally that limit
analysis to the two main dimensions covered in the Risk and Return
elements in their portfolio’s contribution to end beneficiaries and
society as a whole.
• The Portfolio allocation could be divided equally, weighted towards
names with better or even worse ESG scores, or with a lower
carbon footprint; names with the highest correlation to the stocks
removed from the index; or derivatives can be used to create
exposures, etc.
WHAT RISKS SHOULD YOU CONSIDER?

23. LINKS
• The World's First Green Bond
• https://www.youtube.com/watch?
v=i3gIJrABLSc&list=PLuz9mCSZhLGlRp5Qa_ZSX0DJd_xNB8ZGj
&index=2
• http://treasury.worldbank.org/en/about/unit/treasury

24. THANK YOU