UN pension fund outsources listed real estate investments
23 September 2010
The United Nations Joint Staff Pension Fund (UNJSPF) is seeking a fund manager to run its portfolio of listed real estate securities.
The $35.3bn (€26.5bn) pension fund for UN staff currently manages its listed real estate investments internally, but has issued a request for proposal for external managers to “maintain and expand” the portfolio.The successful manager will have discretion over the portfolio, although the UNJSPF has included a number of stipulations, including retaining the right to veto investments in specific securities if they are deemed too risky.
The pension fund asked that the manager invest on “a global basis, in a highly diversified manner” and provide general research on global real estate markets as part of its mandate. The UNJSPF also stipulated that the manager should provide monthly performance reports on the portfolio, as well as list specific performance for each security held. The manager must be contactable on a daily basis and attend monthly pension fund committee meetings every quarter. The listed property portfolio is part of the UNJSPF’s wider global real estate allocation, including non-US real estate and non-listed real estate funds across the risk-return spectrum.The pension fund has 4% of its assets invested in real estate, although its long-term strategic weighting is 6%.
Following an asset liability study in 2007, the pension fund has built up a portfolio where 75% of investments are non-listed and 80% can be considered core investments. Real estate securities and real estate investment trusts (REITs) make up approximately a quarter of the UNJSPF’s real estate exposure.The objective of the portfolio is to produce long-term risk-adjusted returns that sit between those of global fixed income and global equities. The pension fund is to undertake a new asset-liability management study, the results and recommendations of which are expected next spring.
De urmarit deasemenea si: http://www.unjspf.org/UNJSPF_Web/page.jsp?role=invest_comm&page=Overview