Strategic Asset Allocation and Risk Governance (SAARG) Committee

Strategic Asset Allocation and Risk Governance (SAARG) Committee Latest News

The PFRDA recently constituted a committee of Investment Experts for Strategic Asset Allocation and Risk Governance (SAARG) to review, recommend and modernize the investment framework under the NPS.

About Strategic Asset Allocation and Risk Governance (SAARG) Committee

• It is a high-level committee of investment experts to review, recommend, and modernise the investment framework under the National Pension System (NPS).
• It was constituted by the Pension Fund Regulatory and Development Authority (PFRDA).
• Objective: Strengthening the long-term investment architecture of NPS by improving diversification, enhancing risk management practices, and expanding investment choices available to subscribers.
• SAARG has been tasked with undertaking a comprehensive review of existing NPS investment guidelines for both government and non-government sectors. 
  • The review will include benchmarking India’s pension investment framework with leading global pension systems as well as the evolving domestic investment ecosystem.
• The committee will examine a wide range of issues, including strategic asset allocation frameworks, introduction and review of asset classes, performance measurement systems, accountability mechanisms, asset-liability management (ALM) practices, valuation standards for alternative investments, portfolio stability and liquidity optimisation. 
  • Governance structures, intermediary architecture, and integration of sustainability considerations into investment decision-making will also fall within its scope.
• The nine-member committee will be chaired by Shri Narayan Ramachandran, former Country Head and CEO of Morgan Stanley India, and comprises eminent experts from the fields of capital markets, asset management and securities law.
• The committee shall have a time of 9 months to examine and submit its report to PFRDA with its recommendations.

Source: CNBC

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