Documents

10 September 2019

IC Mtg Minutes 10 September 2019

Inv -201 9-Mtg -03 1




G avi Alliance Investment Committee Meeting
10 September 201 9
Blac kRock Office, New York City


1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced a t 08 .30 New
York City time on 10 September 201 9. Stephen Zinser , Investment Committee
Chair, chaired the meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a in the
Committee pack ).

1.3 The minutes of the 7 Ma y 201 9 meeting were tabled to the Committee for
information (Doc 01b) . The minutes had been circulated and approved by no -
objection on 12 June 2019 .

1.4 The Committee noted its action sheet (Doc 01c) and the forward work plan
(Doc 01d).

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2. Manager presentation

2.1 The Chair introduced the asset manager and noted that the presentation , at this
stage, is for informational purpose s only (Doc 02) .

2.2 Hector Negroni, Founder, and Timothy Romer, Chief Executive Officer, presen ted
the manager and the fund, the team, target deals, target returns, the market
opportunities, and outlined their experience and approach to infrastructure debt
markets in the US .

Discussion

? In response to a question from a Committee member in relation to how they source
the ir deals , the manger noted that it is primarily through their wide network and
connection s with broker -dealers . The Committee asked various questions about
working with mun icipalities, liquidity, social infrastructure and specifically the
fund?s approach to socially responsible investing , source s of financing , investment
team composition and experience , deal sourcing and competition .

? The Committee further discussed the firm and fund and the Chair reminded the
Committee that an allocation of up to 10% of private debt in the long -term portfolio
was approved in principle but that well less than 10% had been invested to date.


Minutes

7 May 2019

IC Mtg Minutes 7 May 2019

Inv -201 9-Mtg -02 1



G avi Alliance Investment Committee Meeting
7 May 201 9
Teleconference


1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced a t 14.00 Geneva
time on 7 May 201 9. Stephen Zinser , Investment Committee Chair, chaired the
meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a in the
Committee pack ).

1.3 The minutes of the 8 February 201 9 meeting were tabled to the Committee and
duly approved (Doc 01b).

1.4 The Committee noted its action sheet (Doc 01c) and the forward work plan
(Doc 01d).

1.5 The Chair welcomed Afsaneh Beschloss as an observer, who had recently agreed
to join the Board of the Gavi Alliance from 1 January 2020 and would also be
formally joining the Investment Committee from that date with a view in due course
to succeeding the current Committee Chair when his term on the Gavi Alliance
Board ends on 30 June 2020.

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2. Manager presentation

2.1 The Chair reminded the Committee that an allocation of up to 10% of illiquid private
debt in the long -term portfolio was app roved in principle but had only been invested
to a modest degree. A fund manager of private debt in the lower middle market
space presented their strategy to the Committee.

2.2 Ms Jeanne Shen, C hief Investment Officer , presented the asset manager and
highlighted that Gavi used this manager as an investor of public debt securities in
the past. The purpose of the presentation was to highlight the potential
opportunities in the asset class and to educate the Committee, with the
understanding that a full due diligence had not yet been completed.

2.3 Senior representatives of the firm ?s strategy presen ted the fund, the team, sample
deals , target returns, the market opportunities, and outlined their experience and
approach to private lending (Annex A, Doc 02) .





Minutes

8 February 2019

IC Mtg Minutes 8 February 2019

Inv -201 9-Mtg -01 1



G avi Alliance Investment Committee Meeting
8 February 201 9
Teleconference


1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced at 14.00 Geneva
time on 8 February 201 9. Stephen Zinser , Investment Committee Chair, chaired
the meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a in the
Committee pack ).

1.3 The minutes of the 8 Nov ember 201 8 meeting were tabled to the Committee and
duly approved (Doc 01b).

1.4 The Committee noted its action sheet (Doc 01c) and the forward work plan
(Doc 01d).

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2. Investment Portfolio Review (including SRI)

2.1 Jeanne Shen, Chief Investment Officer, updated the Committee on the four th
quarter (4Q) 2018 performance of the investment portfolio, manager activities and
related transactions (Doc 02).

2.2 Ms Shen outlin ed the volatile financial market s during 4Q, pointing to geopolit ical
uncertainty , Sino -US trade tensions, concern about US rates ris ing too quickly and
falling oil prices.

2.3 In relation to the long -term portfolio, Ms Shen noted the negative return in 4Q. She
highlight ed that the greatest negative impact on an absolute basis was seen in
Equitie s although the Multi -Exposure asset class was a primary detractor on a
relative basis . It was further noted that several Fixed I ncome fund s also delivered
returns which were negative for Q4 while the index benchmark was positive .

2.4 Ms Shen explain ed that c ash was the only asset class with a n overall positive
return in 2018 and that Gavi had US $ 175 m illion of cash not yet invested at the
end of 2018 . It was however highlighted that , despite a challenging past year for
the long -term portfolio , the individual asset classes still beat their benchmark s over
long er periods .

2.5 With regards to manager performance , Ms Shen highlighted a disappointing
performance in 2018 for a Directional Long -Only Fixed Income manager for which
Gavi had already reduced the portfolio . In the Multi -Exposure asset class,


Minutes

8 November 2018

IC Mtg Minutes 8 November 2018

Inv -2018 -Mtg -04 1



G avi Alliance Investment Committee Meeting
8 November 2018
Teleconference


1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced at 14.00 Geneva
time on 8 November 2018 . Stephen Zinser , Investment Committee Chair, chaired
the meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a ).

1.3 The minutes of the 11 September 201 8 meeting were tabled to the Committee and
duly approved (Doc 01b in the Committee pack).

1.4 The Committee noted its action sheet (Doc 01c) and the forward work plan (Doc
01d). In relation to the action sheet, the Chair confirmed that the Secretariat had
indeed pursued opportunities with the private investment firm which presented to
the Committee in May 2018. It was also noted that the Secretariat will provide
updates on the ot her open actions in this meeting.


Decision One

The Gavi Alliance Investment Committee:

Approve d the minutes of its meeting on 11 September 2018 .

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2. Manager Presentation

2.1 The Chair reminded the Committee that an allocation of up to 10% of private debt
in the long -term portfolio was recently approved in principle but of which
approximately 3% had been committed. He re -iterated that it was crucial to find
the right manager for this specialised bucket. In that context, a fund manager from
a US based distressed asset specialist presented highlights of their firm and
strategy to the Committee as a potential for further investment in this area.

2.2 The culture of the company and the ir approach to distressed asset management
was outlined , highlight ing the focus on complex, high -conviction assets (Annex A,
Doc 02) .






Minutes

11 September 2018

IC Mtg Minutes 11 September 2018

Inv -2018 -Mtg -03 1



G avi Alliance Investment Committee Meeting
11 September 2018
Teleconference


1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced at 14.07 Geneva
time on 11 September 2018 . Stephen Zinser , Investment Committee Chair,
chaired the meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a ).

1.3 The minutes of the 15 Ma y 201 8 meeting were tabled to the Committee for
information (Doc 01b in the Committee pack). The minutes had been circulated
and approved by no -obje ction o n 4 July 2018 .

1.4 The Committee noted its Action sheet (Doc 01c) and the forward work plan
(Doc 01d).

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2. Investment portfolio review

2.1 Jeanne Shen, Chief Investment Officer, update d the Committee on the
performance of the investment portfolio through July 2018 , as well as manager
activities and associated transactions since the previous Investment Committee
meeting (Doc 2) .

2.2 In the market review, Ms Shen noted continuing volatility in the second quarter .
She highlighted the strengthening of the US dollar , Federal Rese rve rate hikes and
the expectations for the European Central Bank to reduce security purchases , and
the impact these policies have had on financial market s.

2.3 It was noted that a modestly positive overall investment gain of US$ 5.2 million
thus far in 2018 was due to higher return s from interest on cash rather than the
returns from the long -term portfolio. She not ed that in terms of relative
performance whilst the YTD return on the Gavi portfolio is below the reference
index , recent changes are expected to yield relative improvement by the end of
2018 . It was noted that all longer term measures of performance relative to the
reference index continue to show solid results.

2.4 Referring to the long -term portfolio , Ms Shen stated that April -June performance
was negative whilst July performance was solid. She explained that equities
(particularly non -US assets) and multi -exposure were the main detractors over this
period .



Minutes

15 May 2018

IC Mtg Minutes 15 May 2018

Inv -2018 -Mtg -02 1



G avi Alliance Investment Committee Meeting
15 Ma y 2018
Teleconference


1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced at 14.10 Geneva
time on 15 Ma y 2018 . Stephen Zinser , Investment Committ ee Chair, chaired the
meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a ).

1.3 The minutes of the 9 February 201 8 meeting were tabled to the Committee for
information (Doc 01b in the Committee pack). The minutes had been circulated
and approved by no -obje ction on 10 April 2018 .

1.4 The Committee noted its Action sheet (Doc 01c) and the forward work plan
(Doc 01d ).

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2. Investment policy and asset allocation statement review

2.1 Jeanne Shen, Chief Investment Officer, outlined proposed updates to both the
Investment Policy and Asset Allocation Statement to the Committee (Doc 2) . She
noted that this had arisen from a discussion at the previous Investment Committee
meeting regarding a proposal to invest in private debt.

2.2 She noted it was determined that the existing Investment Policy permitted
investments in private debt mandate s but the opportunity was used to make some
minor amendments to the policy in consultation with NEPC . Ms Shen reported that
these amendments would not result in any changes to the investment objectives,
management structure, or portfolio compositio n. In addition, the long -term portfolio
performance objectives would not change . She stated that no changes were
required with respect to overall portfolio liquidity, but some minor clarifications of
wording were undertaken.

2.3 Referring to the Asset Allocation Statement, Ms Shen outline d to the Committee
the proposed insertion of a procedure to account for breaches in single manager
concentration limits amongst other minor wording amendments.




Minutes

9 February 2018

IC Mtg Minutes 9 February 2018

Inv -2018 -Mtg -01 1



G avi Alliance Investment Committee Meeting
9 February 2018
Teleconference


1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced at 14.00 Geneva
time on 9 February 2018 . Stephen Zinser , Investment Committ ee Chair, chaired
the meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a ).

1.3 The minutes of the 9 November 2017 meeting were tabled to the Committee for
information (Doc 01b in the Committee pack). The minutes had been circulated
and approved by no -objection on 19 December 2017.

1.4 The Committee noted its Action sheet (Doc 01c) and the forward work plan
(Doc 01d).

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2. Asset allocation review and outlook

2.1 Sebastian Grzejka , NEPC , presented to the Committee its independent annual
assessment of Gavi?s long -term inve stments portfolio (Doc 02 ), including a review
of Gavi?s asset allocation in the context of the request from the Board to the
Investment Committee during its November 2017 meeting to consider whether or
not there is a need for Gavi to maintain its current levels of liquidity in vir tually the
entirety of its long term p ortfolio.

2.2 Mr Grzejka highlighted that the relative value of developed market equities outside
the US has improved . NEPC recommends reducing exposure to assets that have
outperformed expectations over a prolonged period such as US equity and high
yield debt , and also to increase exposure to strategies that are likely to outperform
in periods of market volatility, such as TIPs (Tre asury Inflation Protected) .

2.3 Mr Grzejka indicated that in their view there are currently more opportunities in the
European, Asian and emerging equity markets relative to the US . Referring to the
market volatility during the days immediately preceding this meet ing, he stated that
in their view the market sell -off is principally due to concerns for increased inflation,
but may also p rovide a buying opportunity from a rebound perspective. He shared
the view that the current volatility is not expected to be part of a massive pull back
but that it will be important to have exposure s that manage volatility in the long
term , particularly at this point in the market and economic cycles .



Minutes

9 November 2017

IC Mtg Minutes 9 November 2017

Inv -2017 -Mtg -04 1


G avi Alliance Investment Committee Meeting
9 November 201 7
Teleconference

1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced at 14.00 Geneva
time on 9 November 201 7. Stephen Zinser , Investment Committ ee Chair, chaired
the meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a ).

1.3 The Committee approved the minutes from 3 August, noted its Action sheet
(Doc 01c) and the forward work plan (Doc 01d).

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2. Investment portfolio review

2.1 Jeanne Shen, Chief Investment Officer, updated the Committee on the
performance of the investment portfolio, manager activities, and related
transactions. She provided an overview of the major exposures in the short -term
and long -term portfolios, contribution to mission, fixed income allocation, key
characteristics of each portfolio exposure , asset allocation ranges and
performance of the total portfolio , as well as individual managers (Doc 0 2).

2.2 Ms Shen provided a comparison of the Gavi long -term portfolio returns plotted
against major indices , and observed that the composition of the Gavi portfolio
should allow it to continue delivering return s as well as risk and volatility
characteristics between that of the relevant global equity and global fixed income
indices .

2.3 She pointed out that Gavi?s equity allocation had outperformed the benchmark on
a year -to -date (YTD) basis . Noting the YTD performance of the fixed incom e
allocation, which was slightly below the benchmark, she informed the Committee
that lack of non USD currency relative to the benchmark when the US Dollar
weakened and relative shorter duration were contribut ing factor s leading to this
slight underperformance.

2.4 Ms Shen reviewed the performance of the largest funds and the fund managers in
the long -term portfolio, noting specifically the managers wit h the best YTD
performance, and also informing the Committee about those whose performance
was lower than expected and whom the Investments team would be monitoring
closely in the next period.

2.5 She then re viewed the short -term portfolio that was US $ 1. 1 billion as of 30
September 2017. She explained that since donor proceeds were invested
exclusively in this portfolio , it is a plain vanilla portfolio with high quality and low


Minutes

3 August 2017

IC Mtg Minutes 3 August 2017

Inv -2017 -Mtg -03 1



G avi Alliance Investment Committee Meeting
3 August 201 7
Teleconference


1. Chair?s report

1.1 Finding a quorum of members present, the meeting commenced at 14.05 Geneva
time on 3 August 201 7. Stephen Zinser , Investment Committ ee Chair, chaired the
meeting.

1.2 Standing declarations of interest were tabled to the Committee (Doc 01a ).

1.3 The Committee reviewed the minutes of its meeting on 2 May 2017 (Doc 01b ),
which were approved by no -objection on 12 June 201 7.

1.4 The Committee noted its Action sheet (Doc 01c) and suggested that any input on
the forward work plan (Doc 01d) should be provided through email .

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2. Manager presentation

2.1 The representatives of trend following investment management firm delivered an
informational report on the ir firm ?s history, its senior management team, the
investment strategy, portfolio implementation and the opportunity set generally for
trend following strategies (Doc 02).

2.2 The Committee sought information from the representatives , including
performance, breadth and depth of various market exposures , the diversification
of returns, and how the fund differentiat es itself from its competitors . At the
presentation?s conclusion, the representatives left the meeting and the Committee
discussed the presentation.

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3. Investment portfolio review

3.1 Jeanne Shen, Chief Investment Officer, reported to the Committee on the
investment portfolio, including strategy review, an overview of the major exposures
in the short - and long -term portfolios, contribution to mission, fixed income
allocation, key characteristics of each portfolio exposure, asset allocation ranges
and performance of the total portfolio , as well as individual managers (Doc 03 ).

3.2 While reviewing the quarter, Ms Shen noted that the portfolio benefited from strong
performance in emerging markets, both in equity and debt markets .



Minutes

Last updated: 8 Jul 2020

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