Result achieved
Outcome summary
The tripartite Board of Directors (BOD) of PASI acknowledge the ILO report and its recommendations on a revised investment strategy for PASI
Outcome achieved
Rapid growth puts PASI under increasing pressure. The reason is that the volume of investments will increase, that the asset classes involved will be more and more complex, and that the investment strategy will become more advanced and require continuous attention and assessment. The current set-up does not allow PASI to address these challenges in a systematic fashion and – equally important – it does not allow PASI to effectively activate scale advantages.
For some time, a major current discussion in and around PASI is whether or not PASI should form an independent entity to handle parts of or all its investments. PASI has requested support from the ILO in order to provide independent advice.
The ILO report presents and discussed four different models: (1) an adaptation of the exiting framework; (2) the formation of specialized entities in particular investment fields; (3) allocation of the investment business to a fully owned subsidiary; and (4) allocation of the investment business to a separate public independent entity with clear ties to PASI.
The tripartite Board of Directors (BOD) of PASI acknowledge the ILO report and its recommendations and in order to implement the recommendations, the BOD has now commissioned a feasibility study. PASI is in the process of conducting that study.
ILO's contribution to the outcome
The ILO has produced a report with the support of the PASI, on the different options of the future of the organization regarding investments. This report is expected to guide the board to choose the most reliable option to better manage their investments. ILO submitted the report to the Board of Director of PASI in August 2019 .