Pension Agency approves investment policy document, defines investment strategy

The Georgian Pension Agency has approved an investment policy document which determines the long-term investment strategy of pension savings.

The document identifies investment objectives, risk management and investment processes.

Approval of the investment policy document is the most important stage for the development of the investment activities of the Pension Agency. It is an important document and defines the long-term strategy of asset distribution through a low-risk portfolio to achieve high real returns,” said Olivier Russo, the chairman of the Georgian Pension Agency’s Investment Board.

Based on the investment policy document, the investment goal is to obtain positive real returns from investments, maintain the required liquidity and diversify the investment portfolio, he noted.

The investment policy document strengthened the risk management approach, noted Russo, and said that the Pension Agency uses Three Lines of Defense model which is a universally recognized international standard.

The Pension Agency manages about one billion GEL, while it has about 100 million GEL in returns, said Acting Director Giorgi Chichinadze at the presentation of the investment policy document earlier today.

The investment activities are managed by an independent Investment Board,  which is staffed by highly qualified foreign members and supervised by the National Bank of Georgia, therefore, an environment for the participants is created so that their savings are protected as much as possible, ” noted Chichinadze.

The document is in full compliance with the Law of Georgia on Funded Pension and has already been officially approved by the National Bank of Georgia.

With developments in the capital markets and the increasing complexity of the agency’s investment activities, investment policy will be reviewed once a year.