Pedro Guazo, Representative of the Secretary-General for the investment of the assets of the United Nations Joint Staff Pension Fund (UNJSPF), spoke about the Fund’s approach to real assets and real estate at an event earlier this month organized by Institutional Investor.  

The Fund makes such investments primarily as a diversification tool to “protect against inflation and generate revenue,” said Mr. Guazo.  

As at the end of January, real estate comprises approximately 7% of the Fund’s portfolio, while real assets–which includes investments in infrastructure, timberland and farmland, and commodities–amounted to just under 0.5%.  

“Over the last three years, we have invested in four deals focused on energy transition and energy solutions, which has paid off,” he said. 

 In 2023, UNJSPF expanded its internal infrastructure investment team.   

“We equipped ourselves with a team of specialists in infrastructure, while also taking into account the core values of the United Nations to inform our investment decisions,” Mr. Guazo said.  

“At the time, we were launching our Responsible Investment strategy and decided to invest in sustainable infrastructure, which is tied to our long-term outlook of reducing the carbon emissions in our portfolio,” he added. 

Mr. Guazo also spoke about affordable housing, a topic about which he and the Fund have been increasingly vocal. 

The Fund has not yet closed any affordable housing deals but is eyeing it as another useful tool for enhancing long-term financial sustainability and practicing responsible investment.  

“We’re interested in this sub-asset class because it allows us to diversify from the traditional model of investing in multi-family,” he said.  

Mr. Guazo also discussed the investment universe in energy, where he noted investors choose where to deploy capital depending on their investment goals. As for the UN Pension Fund, “we will continue to focus more on renewables and the transition to a low-carbon economy,” he concluded.