Pension Fund earns 12.6 per cent in 2012, hits new high of USD 45.59 billion

Posted: Thursday, 17 January 2013, New York | Author: UN Investment Management Division

The United Nations Joint Staff Pension Fund investments,  managed by the Investment Management Division, earned 12.64 per cent in 2012, outperforming its policy benchmark by 72 basis points.  In addition, as of 15 January 2013, the Fund reached a new all-time high of USD45.595 billion. The Fund had closed the calendar year ending 31 December 2012 at USD44.637 billion, based on reports from the independent Master Record Keeper.
The USD 45.595 billion all-time high reached on 15 January 2013 represents a gain of approximately USD 18.91 billion since the depth of the financial crisis when the balance dipped to USD26.683 billion on 9 March  2009.  This substantial progress can be attributed to many initiatives the Fund has taken, including a significant rebalancing towards equities beginning in March 2009. 

The Investment Management Division undertook a substantial modernization of its IT infrastructure, established a Risk and Compliance Team, strengthened the Investment Team, diversified the Fund into new asset classes including Private Equity and Risk Parity, and implemented risk analytics systems.  In addition, the Fund established a strong Business Continuity and Disaster Recovery process, which was put to use during Hurricane Sandy, during which the Fund was able to perform all of its core functions without disruption.  

For the year ending 31 December 2012, the Fund outperformed its policy benchmark by 72 bps, with a 12.64 percent return.  Over the past 50 years, the Fund has achieved a real rate of return of 3.8 per cent outperforming its  target of 3.5 per cent by 0.3 per cent points.   Updated Fund valuations and more details can be viewed by visiting the IMD website:

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