Management Models for Focused Portfolios

The Framework

Focused portfolios represent a diverse group of country and multicountry portfolios with unique epidemic contexts, specific opportunities, and challenges. To better support these portfolios, the Global Fund introduced new management models in Grant Cycle 7. These models encourage country stakeholders to focus limited resources on a small number of objectives to maximize programmatic impact. For Grant Cycle 8 (GC8), the Global Fund further streamlined and adapted these models.

Four Focused Portfolio Management Models

The framework defines three management models for Focused portfolios: Aligned, Targeted and Light. The Legacy model (previous approach) is discontinued for GC8.

The models are differentiated according to the level of grant life cycle requirements, and the degree of Global Fund oversight, as illustrated below. There is no hierarchy between models, nor any expectation that countries progress from one model to another.

Model 1: Aligned (simplest)

This model is designed to align with country priorities on one or at most two specific objectives per disease component. It relies on a country’s capability to reach targets independently, using longer reporting cycles and country processes and systems whenever possible.

During Funding Request design, applicants, in consultation with relevant stakeholders, identify programmatic priorities where Global Fund investments are most catalytic and ensure critical support (financial and otherwise) to maximize their impact. The Global Fund’s role is to support these portfolios to ensure investments strengthen national priorities, support meaningful stakeholder involvement and civil society engagement, foster political commitment, and encourage meaningful co-financing investments.

During implementation, Principal Recipients use the country’s processes and systems to deliver, monitor and report results as defined in the signed Grant Confirmation. The Global Fund encourages stakeholder engagement and the mobilization of technical assistance.

This is the simplest model, with the fewest requirements, and is most suitable for portfolios with relatively small allocations.

Model 2: Targeted (results-based)

The Targeted model is designed to apply the Payment for Results (PfR) modality, in which the Global Fund makes payments based on verified results rather than on the implementation of budgeted grant activities.

During Funding Request design, applicants identify interventions and indicators that would benefit from PfR incentives to maximize impact. Together with the Global Fund, the Principal Recipient defines targets and agrees on the incentive structure, ensuring strong country ownership and commitment.

During implementation, Principal Recipients have broad autonomy to determine activities needed to achieve the agreed results. The Global Fund focuses on verifying results and payment decisions accordingly.

Grants using this model may also include parts of investments not tied to PfR incentives. Those are managed using the Light model.

This model is for portfolios that already implement or have demonstrated the capacity to implement PfR modalities.

Model 3: Light (streamlined)

The Light model reduces the requirements for certain Global Fund processes and lessens the level of detail expected in grant deliverables, allowing stakeholders to focus on the highest value tasks.

During Funding Request design, applicants define the interventions to be supported by Global Fund investments and provide a sound basis for analyzing the high-level costs. The Global Fund confirms the alignment of programmatic targets and budgets and ensures implementation arrangements are adequate to deliver on them.

During implementation, Principal Recipients carry out and adjust interventions and budgets as needed, reporting progress with less granularity than in previous grant cycles. The Global Fund oversees and assesses this progress and conducts assurance activities, but less frequently than High or Core portfolios.

This model is suitable for portfolios with relatively higher risk profiles (e.g., challenging operating environments, countries under the Additional Safeguards Policy).

Model 4: Legacy (previous approach)

The Legacy model follows the previous approach to managing Focused portfolios, characterized by detailed, granular engagement with applicants and Principal Recipients.

This model is discontinued starting in GC8.

Model Designation

For each grant cycle, the Global Fund determines the management model for each Focused portfolio based on a holistic set of criteria, including allocation size, country and grant risk levels, and performance rating. The designated model applies to all grants in the Focused portfolio for that grant cycle.

Focused portfolios are informed of their model designation for GC8 through the Allocation Letter.

Policies, Instructions and Guidelines Updates

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