GLOBAL - The CEO of the US$37bn United Nations (UN) pension fund has denied there is a rift within the hierarchy of the scheme.
Bernard Cocheme told Global Pensions that reports of conflict between the liability and investment arms of the organisation had come from a policy review which had been ordered by a UN resolution.
Cocheme said: “We reviewed the memorandum of understanding between the CEO and representative of the secretary-general for investments, which was signed six years ago. I presented this to the board stating the challenges we face and three options over how to tackle them.”
He continued: “The board voted for the option to improve the coordination and cooperation of the two arms with the CEO taking charge of much of the operation.”
The two other options were simply tightening up practices or interdepartmental cooperation to enact regulatory reform without the CEOs control.
“It is an ongoing process to reform the pension operation at the UN. To convince some that it is necessary to continually reassess procedures will be a challenge in itself,” Cocheme concluded.
Investment for the fund which covers 22 organisations, including the World Health Organisation (WHO) Unicef, and over 150,000 members and retirees, is headed up by William Sach.
In February, Sach’s department announced it would outsource $9bn of its assets and appoint a passive US equities and a transition manager.
For the year ending 31 March 2007, the fund missed its benchmark return of 13.6% by 0.2%.
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