The Investment Management Service is responsible for the day to day management of the assets of the Fund and for the maintenance of detailed accounts of all investments and other transactions relating to the Fund.

(b) To review the procedures and operating methods of the Investment Management Service

The office is also responsible for the issuance of all reports of the Investment Management Service to the governing United Nations committees and the Investments Committee.

The office of the Director is responsible for the overall operations of the Investment Management Service.

(d) In view of the size and diversification of the investment portfolio, the Investment Management Service should increase the number of investment managers or review the possibility of hiring additional discretionary investment advisers (AS2001 95 1 14)

Note Data for 1981 1985 refer to direct investments abroad (D1), which are the amount of paid up shares of overseas subsidiaries and associates held by companies in Singapore.

It is expected that this will bring new efficiencies to the operational and accounting processes and procedures of the Investment Management Service.

(e) The new investment officer will be specialized in alternative asset management, the skills for which significantly differ from those for conventional portfolio management.

(c) Enhancement of the Investment Management Service through the addition of five new posts, indexed management costs, including the costs of transition management services, and consultant costs

10. Calls upon the Investment Management Service to expeditiously implement the recommendations of the Board of Auditors with regard to the determination of the level of tolerance for risk, improvement in internal review of performance and the trade order management system

(g) It is important to have a function within the Investment Management Service that will play an independent liaison role in the Fund's governance structure in regard to compliance issues.

(a) The increasing complexity of the market and operational environment has made it imperative for investment management organizations to build a strong compliance monitoring capability

(f) Compliance processes are needed for monitoring the adherence of advisers and service providers to the standards of the Investment Management Service

Implementation of the recommendations of the Office of Internal Oversight Services on the Investment Management Service of the United Nations Joint Staff Pension Fund

Historically, the increase of the Fund's value and the speed of the evolution of the market environment have outpaced the build up of investment and operational capability in the Investment Management Service.

Moreover, the Operations Section maintains the budget of the Investment Management Service, monitoring expenditures against budget allocations and processing payments.

There is a need for technical engineers with a financial background in order to ensure that best practices are followed in the area of investment management

(c) Improving the efficiency and flexibility of the Investment Management Service in adopting new investment approaches requires a stronger and more sophisticated infrastructure.

The Investment Management Service of the Fund stated that it would request the necessary resources in the budget for the 2006 2007 biennium.

4. Takes note of the arrangements for leasing office space to accommodate in New York, outside United Nations Headquarters, the Fund secretariat and the Investment Management Service

When contributions are larger than benefit payments, short term mismanagement of investments may not always be detrimental.

Under the circumstances, the Investment Management Service has received a number of audit recommendations in the past few years.

To carry out the mission and achieve the Fund's goals and objectives, the Investment Section of the Investment Management Service actively manages portfolios of equity, fixed income, real estate and short term investments, constantly analysing capital markets and investment opportunities.

Growing awareness of socially responsible investments and the stance of the United Nations towards such issues have made it necessary for the Investment Management Service to carefully analyse the issues and develop an investment policy that particularly addresses them.

58 279. Report of the Office of Internal Oversight Services on the audit of the Investment Management Service of the United Nations Joint Staff Pension Fund

3. Notes the concern expressed by the Board over the reduction in the market value of the investments of the Fund and the continuing efforts by the management of the investments to deal with market turbulence

3. Notes that the Board requested the Fund to continue its efforts to consolidate the information technology services of the secretariat of the Fund and those of the Investment Management Service

11. Requests that all vacant Professional posts, including the five new posts in the Investment Management Service endorsed by the present resolution, be expeditiously filled

In previous bienniums, bank charges were shown as a net amount after the interest income had been offset against the charges under Investment Management Service.

At this critical juncture, the Office of Internal Oversight Services conducted an audit of the Investment Management Service and found a number of deficiencies that required urgent action.

Real time execution, electronic liquidity connections to over 300 brokers and financial protocols will help the Investment Management Service to achieve best execution of transactions.

(a) The Investment Management Service should review the possibility of further diversifying its investment portfolio (asset classes) using alternative investments, within its tenets of safety, profitability, liquidity and convertibility, and inform the Pension Board of the results of the review for its consideration (AS2003 801 02 003)

As the legal reviews need highly specialized knowledge, the Office of Legal Affairs has recommended that the Investment Management Service retain an outside legal firm.

There may be some savings to be realized as the Investment Management Service is in the process of changing to one global custodian to replace the master record keeper and three regional custodians.

(b) The Investment Management Service therefore requires a dedicated information technology staff specialized in financial applications and communications, with expertise in response time requirements.

The system is a financial industry standard, which consolidates into a unique and integral database all of the various financial data sources of the Investment Management Service, allowing the certification of data accuracy by the Service and the creation of metadata and benchmark indices, which are essential for improved investment analytical processes.

Investments

Investment Management 32

Office of Chief Executive Officer 8

Pension Entitlements and Client Services

Custody of investments

Income from investments

Secondaries Secondary investments refer to investments made in existing private equity assets.

2. Notes with concern the findings of the Office of Internal Oversight Services on problem areas in the functioning, administration and accountability mechanisms of the Investment Management Service

The key to successful increased investment in water infrastructure is an equally increased investment in water institutions.