ILO SSO Project: Investment

Investment Governance Workshops

Investment Governance is the decision-making and monitoring process that must be put in place to ensure social security assets are invested appropriately. It is not only consistent with good practice but adds value in low return times. It can be defined as ‘doing things right’ and ‘doing the right things’. Appropriate investment governance structures and mechanisms ensure effective management of social security reserve funds

The ILO is undertaking 3 Investment Governance Workshops to  look at all aspects of investment governance, and to highlight international examples and good practices so as to strengthen SSO investment governance structures and processes.

Day 1: Principles and Structures  (November 9th)

  • The Governance Journey
  • The building blocks of investment governance
    • Investment Governance Principles (Beliefs, Mission and Objectives)
    • Investment Governance Structures (Bodies and their responsibilities)

Day 2:  Investment management processes (December 18th)

  • Taking into account liabilities and developing a Funding Policy
  • Defining the risk budget
  • Portfolio construction, strategic and dynamic asset allocation, passive versus active and choice of external or internal managers
  • Valuation, reporting, disclosure and monitoring performance

Day 3:  Investment manager issues, trends and challenges (Date to be confirmed)

  • Different approaches for internal and external managers
  • Selecting, monitoring and hiring and firing external managers
  • SRI, currency hedging, infrastructure investment
  • Next steps and action points

 

Resources 

The presentation slides for all three days can be found under the 'Resources' tab of this workspace.

Òther resources used include and referred to include

- The ISSA Investment Guidelines

- CPPIB Terms of Reference for the Board

- CPPIB Guidance for the Board and other governance resources

- OECD Pension Governance Guidelines

- UN Principles on Responsible Investing