GAVI Alliance Investment Committee meeting , 2 June 2009 FINAL MINUTES

1

GAVI Alliance Investment Committee meeting
2 June 2009
Washington, DC, USA

FINAL Minutes

Finding a quorum of members present
1, the meeting commenced at 13.30 Washington time on 2
June 2009 .
2

Notice of the meeting was waived as all members were present.
1 Portfolio size
The Chair recommended the Committee take a position that a prudent minimum size of the
portfolio should be equal to cover GAVI?s expenses for one year, or approximately US$ 1.2 billion.
This would provide a cushion should donors stretch their commitments or have difficulty fulfilling
commitments due to budgetary constraints. The Committee acknowledged there would be a
significant challenge in maintaining this size.

RECOMENDATION
The GAVI Alliance Investment Committee:
1.1 Recommended

to t he Board an approach of maintaining an investment portfolio that
covers one times annual expenditures, or about US $ 1.2 billion, such that GAVI has
sufficient financial flexibility.
There being no further business, the meeting was adjourned.


______________________________________
Mr. Kevin Klock, Assistant Secretary
1 P articipants are listed in Attachment A. 2 A 9 December 2008 email from Mary Robinson, Board Chair, nominated George W. Wellde, Jr. to be Chair of
the Investment Committee. As such, Mr. Wellde served as Chair of the Meeting (?Chair?) .

GAVI Alliance Governance Committee meeting, 1 June 2009 FINAL MINUTES

1

GAVI Alliance Governance Committee meeting
1 June 2009
Washington, DC, USA

FINAL Minutes

Finding a quorum of members present
1, the meeting commenced at 19.00 Washington time on 1
June 2009 .
2
The Committee reviewed the minutes from its meeting on 15 April 2009 (Doc #1 in the
committee pack).
DECISION
The GAVI Alliance Governance Committee:
Approved

the minutes of its meeting on 15 April 2009.
1 Nominations
Lisa Jacobs, Head of Governance listed the nominations for board and committee seats and
committee chairs (Doc #2) . Discussion followed:
? The Secretariat confirmed the USA/Canada/Australia constituency consulted internally to
identify its board candidate. The UK/Norway/Ireland constituency had done the same to
identify its alternate. In addition, the developing country board members each identified
senior representatives from within their governments to serve as their alternates. Each of
these actions was in keeping with practices used in the past to identify eligible constituency
board members.
? The Chair and Vice Chair recommended committee chair nominees by email on 9 December
2008. Each of the candidates had served in an unofficial capacity until now.
? The Chair emphasised the need to have an appropriate gender balance on the Board going
forward.

RECOMMENDATION
The GAVI Alliance Governance Committee:
1.1 Nominated
1.1.1 Agn?s Binagwaho as Alternate Board Member to Richard Sezibera until 3 1
December 2011

the following individuals to serve on the Board for the terms listed below:
1.1.2 Nejmudin Kedir Bilal as Alternate Board Member to Tedros Ghebreyesus until
31 December 2009
1.1.3 Nguyen Tran Hien as Alternate Board Member to Trinh Quan Huan until 31
December 2011
1.1.4 Gloria Steele as a Board and Executive Committee Member representing
USA/Canada/Australia until 30 June 2011
1.1.5 Paul Fife as Alternate Board Member to Gavin McGillivray until 31 December
2009.
1 Participants are listed in Attachment A. 2 As no Committee Chair had been appointed, the Board Chair served as Chair of the Meeting.

GAVI Alliance Audit and Finance Committee teleconference, 28 May 2009 FINAL MINUTES
1

GAVI Alliance Audit and Finance Committee teleconference
28 May 2009

FINAL Minutes

Finding a quorum of members present
1, the meeting commenced at 10.00 Washington time on 28
May 2009 .
2
The Committee reviewed the minutes from its meeting on 23
March 2009 (Doc #1 in
the committee pack).
DECISION
The GAVI Alliance Audit and Finance Committee:
Approved

the minutes of its meeting on 23 March 2009 subject to an amendment in
recommendation 1.2 clarifying that the Committee had recommended a ?supplemental
pr ogramme expenditure? .
1 Executive session with the external auditor
The Committee moved into executive session with Marianne Fallon and Pierre- Henri Pingeon from
KPMG, GAVI?s external auditor to discuss the conduct and performance of the audit.

2 2008 fin ancial statements
Tony Dutson, Chief Accounting Officer reviewed the draft 200 8 GAVI Alliance, Geneva financial
statements (Doc #2) and the representation letter to KPMG (Doc #3). Discussion followed:
? The financials were a reflection of the entity principally when it was known as the GAVI
Foundation and served in a supporting role to the non juridical GAVI Alliance. As such, the
organisation?s activity was nominal and the balance sheet was small. Therefore, KPMG
performed a limited assessment and determined ?nothing has come to our attention that
causes us to believe that the financial statements do not comply with Swiss law and the
foundation?s charter.? The Chair noted this is considered a clean opinion in Switzerland.
? The Chair informed the Secretariat that the Committee also reviewed the financials in
executive session and were pleased with them.

RECOMMENDATION
The GAVI Alliance Audit and Finance Committee :
2.1 Recommended
2.2
to the Board that it acknowledge it has read the ?Report of the
Statutory Auditor on the Limited Statutory Examination to the Board of Trustees.?
Recommended

to the Board that it approve the ?GAVI Alliance, Geneva Financial
Statements 2008.?
1 P articipants are listed in Attachment A. 2 A 9 December 2008 email from Mary Robinson, Board Chair, nominated Wayne Berson to be Chair of the
Audit and Finance Committee. As such, Mr. Berson served as Chair of the Meeting (?Chair?) .

GAVI Alliance Investment Committee Meeting, 27 May 2009 FINAL MINUTES

1

GAVI Alliance Investment Committee teleconference
27 May 2009

FINAL Minutes

Finding a quorum of members present
1, the meeting commenced at 9.0 0 Washington time on 27
May 2009 .
2
The Committee reviewed the minutes from its meeting on 23 February 2009
(Doc #1 in
the committee pack) .
DECISION
The GAVI Alliance Investment Committee:
1.1 Approved

the minutes of its meeting on 23 February 2009 subject to an amendment
in Section 1 that clarifies ?budgets for development are tied to Gross National
Product.?
1 Inve stment performance update
Alice P. Albright, EVP and Alliance CFIO delivered a report on the performance of GAVI?s
investment portfolio (Doc #2). In particular, she reviewed general market volatility, portfolio
returns, asset allocation, risk, sector performance, manager performance and due diligence,
diversification, benchmarks, and credit quality. Jeanne Shen, Senior Director of Investments
provided audit and transition updates. Discussion followed:
? The Committee requires feedback from the Board as to the scope and speed of any potential
drawdowns to the portfolio over the next 12 -18 months and potentially longer. Such
feedback will affect how the portfolio is invested.
? The Committee should take a position on the ideal minimum size of the investment portfolio
to make sure GAVI can fund its expenses in case of an unexpected loss of donor revenue.
Next week the Committee should meet in Washington, DC, to determine how to advise the
Board.
? The Secretariat informed the Committee the final super grant will be tabled to the Audit and
Finance Committee on 28 May 2009. The grant is broken into five tranches, two of which
have been executed via mini- grants and three which would be executed after the seat
agreement is signed with the Swiss authorities. Most of the investment portfolio will transfer
to the GAVI Alliance in tranches three and four.
? The Secretariat has hired a firm to help with screening as part of the Socially Responsible
Investment programme. The first semi- annual report will be ready in due course.

2 Manager report ? Baird Advisors
Mary Ellen Stanek, Chief Investment Officer of Baird Advisors delivered a general investment
outlook and reviewed the quality and sector breakdown of one of its investment products (Doc #3) .
Baird and the Committee discussed expenses, ratings quality, leverage, and interest rates. Baird also
made some investment recommendations based on scenarios the Committee presented.
1 P articipants are listed in Attachment A. 2 A 9 December 2008 email from Mary Robinson, Board Chair, nominated George W. Wellde, Jr. to be Chair of
the Investment Committee. As such, Mr. Wellde served as Chair of the Meeting (?Chair?) .

Programme / Policy Committee Meeting, 15-16 April 2009 Final Report
1?
?
Programme and Policy Committee (PPC) Meeting
15-16 April 2009

Participants:

PPC members
Sissel Hodne Steen (Chair), Joan Awunyo-Akaba, George Bickerstaff, Ashutosh Garg, Majid Al-
Gunaid, Suresh Jadhav, Rama Lakshminarayanan, Steve Landry, Ahmed Magan, Susan McKinney,
Jean-Marie Okwo-Bele, Olga Popova, Aldo Tagliabue

Secretariat
Mercy Ahun, Hostencia Esua, Lisa Jacobs, Nina Schwalbe and other attendees as noted in agenda

With Regrets
John Clemens

Reflection on Board Retreat:
The Chair gave an overview of the Board retreat and summarized points relevant to the PPC on data
and immunization support services (ISS), future challenges, co-financing, partnership, the funding
model and eligibility.

Discussion:
? Regarding co-financing, GAVI should consider their ?exit strategy? and the need for further
vaccine price reduction to facilitate country ownership. GAVI should also put pressure on
countries with potential ability to pay for vaccines, such as India.

? There should be transparency in data review regarding ISS. The potential of civil society
organizations (CSOs) engagement in monitoring data validity should be reviewed as well as
the effectiveness of the CSO support window to date.

? There were questions raised on how the MDGs should guide GAVI work as well as GAVI?s
future role in health systems strengthening (further discussion on health systems
strengthening (HSS) took place later in the agenda).

Action items:
? While waiting for the evaluation of the CSO window in 2010, the secretariat should move
forward with making changes based on experience to date. The PPC should be kept
informed of these changes.

GAVI In-Kind Donations Policy Revision (Gian Gandhi)
Gian Gandhi presented a draft donation policy recommending that in principle, GAVI would not
accept in-kind donations of vaccines or other health products, however may consider in-kind
donations of vaccines under exceptional circumstances (e.g. shortages, stockpiles). It also
recommended that GAVI would consider in-kind donations of non-health goods and services (e.g.
computers, consulting) on a case-by-case basis.