Focused Portfolio Management Models

The Framework

Focused portfolios represent a diverse group of country and multicountry grants with unique epidemic contexts, specific opportunities and challenges. In light of this, the Global Fund is introducing new management models for this type of portfolio. These encourage country stakeholders to focus their limited resources on a few objectives to achieve maximum programmatic impact.

Four Focused Portfolio Management Models

The new framework defines three additional management models for Focused portfolios: Aligned, Targeted and Light, and includes the Focused management model used until now as the Legacy model. The models are defined according to the level of process requirements in the grant life cycle, and the level of oversight by the Global Fund, as illustrated below. There is neither a hierarchy between models, nor an expectation that countries progress from one model to the other.

Model 1: Aligned

As its name suggests, the Aligned model is designed to align with country priorities on one or maximum two specific objectives per disease component. It is based on a country’s capability to reach targets independently, and uses longer reporting cycles as well as country processes and systems wherever possible.

During the funding request design, applicants, in consultation with relevant stakeholders, identify programmatic priority(ies) where Global Fund investments prove to be most catalytic and ensure critical support (financial and otherwise) to maximize their impact. The Global Fund focuses its support for these portfolios to ensure investments strengthen national priorities, including meaningful involvement of key stakeholders and civil society, garnering political commitment, and driving for meaningful co-financing investments.

During program execution, implementers use the country’s processes and systems to implement the grant and to monitor and report on the achievement of the expected results as defined in the signed grant confirmation. The Global Fund supports the engagement of stakeholders and the mobilization of technical support.

Principal Recipients using this model have a strong track record of implementing Global Fund investments, a demonstrated ability to make decisions on program implementation, and robust reporting, oversight and auditing mechanisms in use in their countries.

Model 2: Targeted

The Targeted model is designed to apply the Payment for Results modality, in which the Global Fund makes payments based on the verification of results being achieved instead of on the implementation of budgeted grant activities.

During the funding request design, applicants identify interventions and corresponding indicators requiring incentives to maximize impact through Payment for Results modalities. The Global Fund works with countries to define appropriate targets and define the incentive approach under this model, ensuring country ownership and commitment to agreed results.

During implementation, Principal Recipients have autonomy to make decisions on activities to be conducted to achieve agreed results. The Global Fund’s focus is on the verification of results and the decisions on payments based on these.

Grants using the Targeted model can also include parts of the investments that are not tied to Payment for Results incentives. Those parts are managed according to the Light model.

Principal Recipients using this model have a demonstrated ability to make programmatic decisions and adjust activities to ensure effective implementation, while maintaining adequate financial management and results reporting.

Model 3: Light

The Light model shifts the focus of stakeholders towards the highest value-adding tasks by reducing the requirements for some Global Fund processes and diminishing the level of detail needed in certain grant deliverables.

During the funding request design, the role of applicants is to define the interventions to be supported by Global Fund investments and provide a sound basis for determining and analyzing the high-level costs of these investments. The Global Fund’s focus is to confirm that programmatic targets and budgets are aligned and that implementation arrangements are adequate to deliver on them.

During implementation, Principal Recipients are responsible for carrying out planned interventions and budgets, and adjusting these as necessary, tracking and reporting progress at a less detailed level of granularity than in previous allocation periods. The Global Fund is focused on overseeing and assessing the progress of the implementation as well as undertaking required assurance activities and does so less frequently than with the previous management model.

Principal Recipients using the Light model are those that benefit from Global Fund support during the design phase to define inputs and budgets, and during implementation to adjust implementation plans and more frequently course correct.

Model 4: Legacy

The Legacy model follows the existing approach for Focused portfolios, maintaining a granular level of engagement with applicants and implementers.

Principal Recipients using this model typically benefit from additional oversight given the comparatively higher allocation and/or risk profiles.

Model Designation

The model for each Focused portfolio is designated based on a holistic set of criteria including allocation size, allocation focus, in-country capacities and political context, in consultation with in-country and Global Fund stakeholders. The same model is generally designated for all grants in a given portfolio.

Focused portfolios are informed of their model for the 2023-2025 Allocation Period through the allocation letter.

Policies, Instructions and Guidelines Updates

The requirements for each model will be captured in relevant operational policies and procedures, instructions and guidelines on an ongoing basis following scheduled updates. The updated documents will be communicated to in-country stakeholders and/or published as part of the Operational Policy Manual.