The Fund’s current “Long-Term Investment Objective” is to meet or exceed a 3.5 per cent real rate of return (net of inflation, as measured by the US Consumer Price Index: All Urban Consumers not seasonally adjusted) in US dollar terms annualized over the long-term (15 years and longer).
The Fund’s current “Short-Term Investment Objective” is to meet or exceed the return of the Policy Benchmark over the short term (3 years).
Management of the investment of the assets of UNJSPF is the fiduciary responsibility of the Secretary-General of the United Nations, in consultation with the Investments Committee, and in the light of observations and suggestions made from time to time by the Pension Board in relation to the investment policy.
The Representative of the Secretary-General (RSG) for the investment of the assets of the Fund has the responsibility and authority to act on behalf of the Secretary-General in all matters involving the fiduciary duties of the Secretary-General relating to the investment of the assets of the Fund, including representing the Secretary-General at meetings of the Investments Committee, the Pension Board, and other meetings where investment matters pertaining to UNJSPF are discussed.
The Representative of the Secretary-General is assisted by OIM. Investments must, at the time of initial review, meet the criteria of safety, profitability, liquidity and convertibility.
Investments are carried out within the framework of the Investment Policy Statement (IPS). The purpose of this Investment Policy Statement (IPS) is to set forth the parameters which shall guide the RSG and OIM staff in managing the investment of the assets of the UNJSPF. The IPS specifies the Long-Term and Short-Term Investment Objectives; the eligible investment universe of asset classes, investment channels, and investment instruments; the Strategic Asset Allocation (SAA) and the Policy Benchmark; the risk parameters; and the investment process.
A full-scale review and updating of the IPS is undertaken in consultation with the Investments Committee and other stakeholders, and in light of the observations and suggestions provided by the United Nations Joint Staff Pension Board (Pension Board or UNJSPB) and taking into account the results of each Asset Liability Management (ALM) Study, conducted once every four years.
The IPS is a living document and will be continuously updated, amended and enhanced as needed by the RSG, in order to provide the Fund with the necessary flexibility and tools required to address specific market conditions or developments.
The Investment Policy Statement was last updated in 2022.
The purpose of the Strategic Asset Allocation (SAA), as reflected in the Policy Benchmark, is to achieve the Fund’s Long-Term Investment Objective. Therefore, strategic investment decisions for the Fund shall be made based on a long-term horizon.
The Real Assets team is responsible for global investments in real estate, infrastructure, timber and commodities through externally managed funds. The team works proactively through the selection and management of its external managers to reduce risk and increase long term returns.
Our real estate program originated in 1971. Today the portfolio is invested globally through over 100 externally managed funds. The real estate program invests in high quality managers that provide superior long-term risk adjusted returns while improving overall portfolio diversification. The allocation is 50 percent core “open ended” funds and 50 percent non-core “closed end” funds. The Fund’s core funds are diversified by geography and property type, and its non-core funds are diversified by vintage year, geography, property type and risk profile.
The Real Assets team also invests in externally managed infrastructure funds. Selection is based on moderate leverage, strong cash flow and a demonstrated record of realizations. Modest allocations to timber and commodities funds, invested on a global basis, are also part of the Real Assets portfolio.
The Global Fixed Income portfolio seeks to achieve an above benchmark return by investing globally in local currency, investment grade securities. The portfolio is traded actively.
The Fixed Income team uses a top-down macro/fundamental research focus to identify investment ideas in local debt markets. Analysis is performed on the economic outlook, valuations and positioning. A bottom-up analysis is used for individual security decisions. This includes an examination of credit quality, sector allocation, maturity profile, liquidity and relative value. The portfolio is constructed with a bias towards low risk securities and with consideration given to diversification and relative value. The portfolio is reviewed actively to adjust to changes in the economic environment and to take advantage of emerging opportunities. Strict compliance with investment guidelines and allocated risk budget is maintained at all times.
In addition to the Global Fixed Income portfolio, the team manages the Operational Cash and Treasury Cash portfolios.
The Alternative Investments team is responsible for investments primarily in private equity through externally managed funds.
The private equity programme began in June 2010. Its charter is to build a private equity portfolio by identifying and investing in top-tier managers that provide superior long-term risk adjusted returns while improving overall portfolio diversification. The Fund’s Private Equity programme currently consists of a select number of externally managed funds diversified by vintage year, private equity sub-sectors and geography. The performance benchmarks for the private equity portfolio are the Morgan Stanley Capital International All Country World Index (MSCI ACWI) Index plus 200 basis points and the Private iQ benchmark.
The Alternative Investment team works closely with the Risk, Compliance and Legal teams to ensure conformity with risk corridors and investment policy considerations.
The Office of Investment Management (OIM) is a long-term investor in high quality companies across the world including emerging and frontier markets. The public equity portfolio is managed internally by four teams: North America, Europe, Asia Pacific, and Global Emerging Markets (GEM). The benchmark is Morgan Stanley Capital International All Country World Index (MSCI ACWI) which is composed of more than 2400 securities across 47 countries/regions, including 24 Emerging Markets.