Investment Strategy Advisory Services and Investment Research Provider for Investment Management ...
United Nations Secretariat | Published April 13, 2017
The Investment Management Division (“IMD”) of UNJSPF, is seeking the following two related services: (A) Investment Strategy Advisor (“ISA”); and (B) Investment Research Provider (“IRP”), as explained below.
A. Investment Strategy Advisor
1. IMD is seeking an ISA to provide investment advice with respect to the strategic and tactical asset allocation of the Fund’s portfolio. The asset classes in which the Fund invests consist of global developed, emerging, and frontier market equities; global fixed income; real assets (real estate, infrastructure, timberlands and agriculture), alternative investments (private equity and real return strategies); and short-term investments & cash. The ISA will provide written recommendations on strategic and tactical asset allocations including regional and currency strategy based on appropriate in depth research and analysis, monitor the investment portfolio, provide summary reporting on those investments on a quarterly basis, and meet with IMD staff subsequently, and on an ad hoc basis.
2. The ISA will also provide strategic advice on the investments and related topics including, but not limited to, the review of the new asset classes, portfolio construction, currency overlay hedging, and investment strategy, benchmarks, portfolio risk management, and peer group analysis on an “as needed” basis.
3. Because of the dynamics of financial markets, the investment advice can be highly time sensitive. The ISA is also expected to provide IMD with timely and effective advice whenever requested. The mandate will cover a wide range of topics and require highly specialized and seasoned experts in each topic.
B. Investment Research Provider
4. IMD is seeking an IRP that will support IMD’s investment decisions by providing a wide range of independent investment research. The coverage should include, but is not limited to, macro-economic analysis, coverage of the Fund’s asset classes, asset allocation, currency, commodities, geopolitical risks, and global sector/industry. The provider should also have the ability to provide sector and preferably securities level research at global/ regional and country level.
5. The research includes investment strategy and research on global, regional, country level as well as sector and preferably security level; ad hoc, weekly, monthly, quarterly and annual investment analysis regarding various asset classes (equities, bonds, cash foreign exchange, real assets and alternatives) and sectors as well as geopolitical and economic research and analysis.
Overview of the Fund
6. The United Nations Joint Staff Pension Fund (“UNJSPF” or “the Fund”) was established by the General Assembly of the United Nations ("UN") to provide retirement, death, disability and related benefits for the staff of the UN and other international intergovernmental organizations admitted to membership in the Fund.
7. The UNJSPF is a defined benefit fund, with over $55 billion under management as of 31 January 2017. The asset classes in which the Fund invests consist of global developed, emerging, and frontier market equity; fixed income; real assets (real estate, infrastructure, timberland and agriculture), alternative investments (private equity and real return strategies); and cash and short-term investments. Approximately 85% of the Fund’s assets are internally managed, with the remainder invested in external small cap equity, real asset, and alternative investment funds. The Fund’s internally managed assets are invested in approximately 25 currencies and 44 countries. Please consult the Fund’s website at www.unjspf.org for a breakdown of the Fund’s assets.
8. The UNJSPF is one of the most globally diversified funds in the world. Although most of the exposure is in major developed markets, the Fund is committed to finding sound investment opportunities in emerging and frontier markets.
9. The Investment Section of the IMD is structured primarily by asset class: Equities, Fixed Income, Real Assets (Real Estate, Infrastructure and Timber and Agriculture) and Alternative Investments (Private Equity and Real Return Strategies.) Within the Equities asset class, portfolio teams are structured by geographic region, i.e., North America, Europe, Asia Pacific and Japan, and Global Emerging Markets.
10. The Fund’s long-term objective is a 3.5 per cent real rate of return.
11. The Fund’s unhedged benchmarks, by asset class, are as follows: Public Equity: MSCI ACWI; Fixed Income: Barclays Capital Global Aggregate; Cash and Short-Term: 50% of BofA ML US 3-month Treasury Bill and 50% of BofA ML Euro T-Bill index; Real Assets: NCRIEF ODCE + 100 bps; Alternative Investments: MSCI ACWI + 200 bps.