OEA - Resolución AICD JD doc 254 de 2026

INTER-AMERICAN AGENCY FOR OEA/Ser.W COOPERATION AND DEVELOPMENT AICD/JD/doc.254/26

MEETING OF THE MANAGEMENT BOARD 22 June 2026

Original: English

NOTE FROM TERESITA MARTIN, CHIEF OF TREASURY, DEPARTMENT

OF FINANCIAL SERVICES, WITH ADDITIONAL CLARIFICATIONS ON

THE CAPITAL FUND INVESTMENT PORTFOLIO – PROPOSED

TRANSITION FOLLOWING VANGUARD DISCONTINUATION OF SELFMANAGED ACCOUNT STRUCTURE17th St. & Constitution Avenue N.W. Washington D.C. 20006 United States of America - P +1 (202) 370.5000 - www.oas.org Action Memorandum June 19, 2026

OED/DFS/207-26

To: Ambassador Chet Neymour, Chair, Management Board of the Inter -American Agency for Cooperation and Development Fr om: Teresita Martin, Chief of Treasury, Department of Financial Services Subj ect: Additional Clarifications: Capital Fund Investment Portfolio – Proposed Transition Following Vanguard Discontinuation of Self-Managed Account Structure Wi th reference to Memorandum DFS/D/013-26 dated May 28, 2026, and the subsequent meeting held on June 18, 2026, during which the Department of Financial Services addressed questions regarding the proposed transition following Vanguard’s discontinuation of self-managed accounts, please find below responses to the Board’s questions, along with a summary comparison table of the two options presented. Addi tional Clarifications

1. The estimated costs shown for each option are incremental costs and are in addition to the

current/existing expense ratios of the underlying mutual funds. Those expense ratios already exist today and would continue under either option. See mutual funds expense ratios below:

2. Se gregation of assets, statements, invoices, and reporting would be maintained under both options considered. Although Mercer and Principal serve other OAS investment portfolios, the Capital Fund

Asset Class Allocation Sub-Asset Class SubAllocation Fund Name Expense Ratio EQUITIES 70% US Equity 50% VTSAX - Vanguard Total Stock Market Index Fund Admiral Shares 0.04% Non-US Equity 20% VTIAX - Vanguard Total International Stock Index Fund Admiral Shares 0.09% FIXED

INCOME 30%

US Fixed Income 15% VBIRX - Vanguard Short-Term Bond Index Fund Admiral Shares 0.06% US Fixed Income 15% VBTLX - Vanguard Total Bond Market Index Fund Admiral Shares 0.04%2

17th St. & Constitution Avenue N.W. Washington D.C. 20006 United States of America - P +1 (202) 370.5000 - www.oas.org would maintain separate ownership, records, holdings, statements, and fee allocation. Shared arrangements will provide economies of scale without commingling assets.

3. Under both options, the existing Vanguard mutual funds are expected to transfer in kind. The transition represents a change in custody and account structure, while preserving continuity and avoiding unnecessary liquidation of assets.

4. By July 31, the contract and all required forms must be reviewed by OAS Legal and signed to initiate the transfer of assets to the new custodian. Please note that this process can take approximately five weeks.

Comparison of Mercer Institutional Advisory Services and Principal Custody Services Category Option #1 Mercer Institutional Advisory Services Option #2 Principal Custody Services (SelfManaged Structure) Service Primary Objective Professional investment advisory services, custody support, and enhanced governance resources designed to support the Board in the

Category Option #1 Mercer Institutional Advisory Services Option #2 Principal Custody Services (SelfManaged Structure) Service Primary Objective Professional investment advisory services, custody support, and enhanced governance resources designed to support the Board in the long-term management of a growing institutional portfolio. Custody and trade execution services under a self-managed structure, relying primarily on the Board’s direction and DFS administration. Portfolio Management Approach Advisory framework combining Board’s oversight, specialized investment expertise by Mercer, and DFS administration. Self-managed framework combining Board oversight and DFS administration without dedicated institutional investment advisory support. Investment Strategy Strategy established by the Board and supported by ongoing professional investment analysis and recommendations provided by Mercer to help align the portfolio with the Fund’s objectives and priorities. Strategy established by the Board. Currently following the Medical Benefits Trust Fund investment strategy and target allocations without dedicated institutional investment advisory support. Professional Investment Advice Yes No Dedicated Institutional Advisor Yes No Quarterly Reporting and Market Analysis Yes No Portfolio Analysis and Asset Allocation Reviews Yes No Strategic Recommendations Yes No3

17th St. & Constitution Avenue N.W. Washington D.C. 20006 United States of America - P +1 (202) 370.5000 - www.oas.org Rebalancing Recommendations Yes No

Access to Investment Expertise Yes No Flexibility to Adapt Investment Strategy High Limited Estimated Annual Cost ~$8,000 (12 bps) plus mutual fund expense ratios ~$2,500 (4 bps) plus mutual fund expense ratios

CC: Javier Arnaiz, Director, Department of Financial Services