Pro-Bono External Observer for UNDP’s Investment Committee

External Members of the UNDP Investment Committee shall be appointed by the Administrator upon recommendation of the Assistant Secretary-General, Bureau for Management Services.

External Members serve in their personal capacity as independent advisors to the Committee and do not represent the interests of any organization, institution, or employer.

Appointments shall seek to ensure an appropriate balance of expertise across global institutional asset management, treasury operations, fixed income & foreign exchange markets, risk management and ESG/SRI Investing.

Purpose and Role

External Members provide independent expert advice and strategic guidance to the Investment Committee in support of UNDP's monetary and investment oversight framework, helping to ensure that the Treasury unit manages investments prudently and with due process, while continuously enhancing its knowledge and capabilities.

The role of External Members is advisory in nature and is intended to strengthen governance, risk oversight, and institutional investment discipline across UNDP's portfolios and foreign exchange activities under the Organization fiduciary responsibility. External Members do not participate in the day-to-day execution of investment transactions or Treasury operations, nor do they provide advice on individual investment decisions.

External Members are expected to provide objective challenges, institutional perspective, and market expertise in support of UNDP's investment objectives of:

• Safety
• Liquidity
• Income
• Socially Responsible Investing

Primary Functions and Expectations

External Members are expected to actively participate in Committee deliberations and provide guidance on matters including, but not limited to:

Investment Policy and Guidelines

• Advising on the development, interpretation, and amendment of UNDP Investment Guidelines.
• Reviewing strategic asset allocation frameworks, permissible instruments, maturity structures, and diversification parameters.
• Providing independent perspectives on ESG/SRI integration and evolving institutional investment practices.

Portfolio Oversight and Risk Management

• Selection of benchmarks and targets for investment returns.
• Reviewing portfolio performance relative to approved benchmarks and investment objectives.
• Assessing portfolio risks, including credits, liquidity, market, currency, operational, and counterparty risks.
• Reviewing material compliance breaches, downgrade events, or other exceptions reported by Treasury.

Treasury and Operational Oversight

• Providing guidance on non-USD currency management and hedging strategies.
• Reviewing the appointment and appropriateness of custodians, investment managers, brokers and counterparties.
• Advising on governance, transparency, and institutional control frameworks relevant to invesment operations.
• Review the performance of the asset managers, custodians, brokers and other relevant external service providers to assis the Organization in the oversight, management and performance evaluation of its investments.

Strategic Advisory Role

• Bringing external market insight and institutional best practices to Committee discussions.
• Providing constructive challenges and independent judgement on significant investment proposals or strategic changes.
• Supportive long-term institutional resilience, sound governance, and fiduciary discipline across UNDP's cash management, asset management, and investment activities.

Participation and Conduct

External Members are expected to:

• Attend quarterly Committee meetings and additional sessions as required.
• Review meeting materials in advance and participate actively in discussions.
• Maintain confidentiality regarding all Committee deliberations, materials and recommendations.
• Exercise independent and objective judgement in the best interests of UNDP.

External Members may be requested to provide informal advice between meetings on material market developments, strategic initiatives, or emerging risks affecting UNDP portfolios.

Qualifications

External Members should possess substantial senior-level experience in one or more of the following areas:

• Institutional asset management
• Fixed income portfolio management
• Treasury and liquidity management
• Foreign exchange management
• Risk management
• ESG/SRI investing
• Pension, reserve or soverign-sytle portfolio oversight

Members should generally possess a minimum of ten (10) years of relevant professional experience iwth governance frameworks applicable to large institutional investment portfolios.

Terms and Remuneration

• External Members shall serve a term of three (3) years, renewable once.
• Members shall serve on a pro-bono basis.
• Where in-person meetings are required, travel and per diem expenses may be covered in accordance with UNDP policy.

Conflicts of Interest

External Members must remain free from actual, potential, or perceived conflicts of interest that could impair their independence or objectivity.

Members shall:

• Complete UNDP conflict of interest declarations prior to appointment;
• Promptly disclose any conflict arising during their term; and
• Recuse themselves from discussions or decisions where a conflict exists.

Where a conflict cannot be appropriately managed, the Chairperson may recommend suspension or termination of membership.

Confidentiality

All documents, discussions, analyses and recommendations related to the Committee's activities shall be treated as confidential and handled in accordance with UNDP information security and confidentiality policies.