Strategic Asset Allocation and Risk Governance (SAARG) Committee:
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.
- 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 is 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.
