How We Invest

The United Nations Secretary-General has delegated the fiduciary responsibility and authority for the management and investment of the Fund’s assets to the Representative of the Secretary-General (RSG). The RSG is responsible and accountable for the investments of the Fund, including oversight of the Office of Investment Management (OIM) which assists the RSG in carrying out his/her duties. Consequently, the RSG has delegated to the Chief Investment Officer (CIO) the authority to make decisions relating to the investment of the assets of the United Nations Joint Staff Pension Fund subject to the following limitations:

• All investment decisions remain subject to the RSG’s ongoing oversight and management; and
• All investment decisions must be consistent with the investments policy and investment guidelines established in accordance with the Regulations, Rules and Pension Adjustment System of the United Nations Joint Staff Pension Fund.

Investments must, at all times, meet the criteria of safety, profitability, liquidity and convertibility.

Long-Term and Short-Term Investment Objectives

The Fund’s “Long-Term Investment Objective” is to meet or exceed a real rate of return (net of inflation, as measured by the US Consumer Price Index: All Urban Consumers not seasonally adjusted) in US dollars over the long-term (15 years and longer) without undue risk of loss, that factors in the liabilities of the Fund and the Required Contribution Rate as defined in the Funding Policy. In the short term (3 years), the Fund aims to meet or exceed the Policy Benchmark’s returns while keeping Key Risk Indicators in line with OIM’s Risk Management Framework.

Click here to see the Funding Policy.

Investment Policy Statement

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 2023.

Strategic Asset Allocation

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.

*Global Equities include Public Equity (across Developed, Emerging and Frontier Markets)
*Real Assets include Infrastructure, Timberland and Commodities.
Numbers are rounded off to the single decimal point and may not add up due to rounding effects.
(Data from independent Master Record Keeper)

Chart Note

Portfolio Strategies

The Fund seeks to invest in active funds in order to achieve excess return over the benchmark. The Fund invests in passive funds when the goal is to provide a low cost and quick implementation of the strategic asset allocation. Participation in passive funds is also an importation source of knowledge sharing and investment research.

Public Equities

The management of the Public Equities portfolio involves overseeing investments in global publicly listed equities, while taking a long-term approach. The benchmark is the MSCI ACWI IMI ESG custom index, which captures large-, mid- and small-cap representation across 23 developed markets and 24 emerging markets. It has more than 8,400 constituents. This asset class is primarily managed internally by four teams at the Office of Investment Management (OIM): North America, Europe, Asia Pacific and Global Emerging Markets, with a small allocation to external specialty managers, mainly in small caps. The teams follow a disciplined investment process, centered on equity screening, fundamental analysis and frequent dialogue with corporate management teams of the companies the Fund invests in or is interested in adding to its portfolio.

Private Markets

Private Market assets in the Fund’s portfolio consist of allocations through partner funds and co-investments in private equity, real assets and real estate. The team is responsible for proactively selecting and managing its partners to provide superior long-term, risk-adjusted returns while enhancing overall portfolio diversification.  

The Private Equity programme, which began in 2010, includes over 100 high-quality funds diversified by vintage year, sub-strategy, sector and geography. Its benchmark is the MSCI ACWI IMI ESG custom index, plus 200 basis points.  

The Real Asset portfolio consists of funds selected based on moderate leverage, strong cash flow and a demonstrated record of realizations. Infrastructure is the primary focus, with modest allocations also made to timber and agriculture. The portfolio’s benchmark is the US Consumer Price Index, plus 400 basis points.  

The Real Estate programme, which originated in 1971, is now invested in over 140 high-quality partners. The allocation is split evenly between core “open-ended” and non-core “closed-end” funds. Core funds are diversified by geography and property type, while non-core funds are diversified by vintage year, geography, property type and risk profile. The benchmark for the Real Estate portfolio is NCREIF ODCE, plus 100 basis points. 

Fixed Income

The management of the Fixed Income portfolio involves overseeing investments in lower-risk securities, with particular consideration given to diversification and relative value. Fixed Income is managed internally across five portfolios comprising US Treasuries, US Securitized, Corporates, Government-related (collectively referred to as ‘Core’) and Global Emerging Markets.  

The benchmark for the Core portfolio is the Bloomberg US Aggregate ESG custom index. For Global Emerging Markets, the benchmark is the Bloomberg EM Local Currency Government index, 10 per cent country capped. Eighty per cent of the credit portfolio, which comprises corporate and government-related assets, is managed externally through passive mandates. 

The benchmark for the external credit portfolio is the Bloomberg MSCI US Government Related and Corporate ESG custom index.  

The Fixed Income team also manages the cash portfolio, which is benchmarked against the Bloomberg US Treasury Bill: 1-3 Months index and provides cash flow and currency requirements (within the Operational Cash and Treasury cash portfolios) for the entire Fund. The team adheres to a robust and disciplined investment process with 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. Bottom-up analysis is used for individual security decisions. This includes an examination of credit quality, sector allocation, maturity profile, liquidity and relative value. Strict compliance with investment guidelines and the allocated risk budget is always maintained.  

Current and Past Investment Policy Statements

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