WORLD TRADE  
ORGANIZATION  WT/L/663 
29 November 2006 
 (06-5733) 
General Council 
14- 16  December 2006  
 
 
    
 
WTO PENSION PLAN 
 
 
 
ANNUAL REPORT OF THE MANAGEMENT BOARD 
 
AND REPORT OF TH E EXTERNAL AUDITOR 
 
THEREON FOR THE YEAR ENDING 
 
31 DECEMBER 20051 
                                                      
1 This Report is published in accordance with  Article 5 of the Regulations of the Plan. WT/L/663 
Page 2  
 
Message from the Chairman of the Management Board
 
 
  "The Management Board of the WTO Pensi on has pleasure in presenting its Annual Report 
for 2005, the seventh year of existence of the Plan .  On the investment side, it has been a very good 
year with the portfolio growing by approximate ly 26 per cent and outperforming  its benchmark by 
1.7 per cent before cost.  This result was achieved prim arily on the back of very strong global equity 
markets which returned 32.8 per cent and emerging ma rket equities which yielded 57.7 per cent.  The 
average annual return on investments over the past th ree years has been 13.7 per cent, as compared to 
a return since Plan inception of 1. 8 per cent, and so the benefits of the new investment strategy are 
clearly visible.  At the same time, it has to be said that the investment performance in 2005 was 
exceptionally good.   You will note from our report that it has been another busy year for the Board on the administrative front, with a variety of issues being d ealt with in the course of the seven meetings held. 
 
 Should you wish to share any thoughts or comments with the Management Board, please do not hesitate to contact Bob Luther or Jean -Pierre Helary in the Plan Secretariat. 
  WT/L/663 
 Page 3 
 
TABLE OF CONTENTS  
  PAGE  
 
I. INTRODUCTION 4 
II. STRUCTURE OF THE PENSION PLAN ON 31 DECEMBER 2005 4 
III. MEETINGS OF THE MANAGEMENT BOARD 5 
IV. PARTICIPATION IN THE PENSION PLAN 8 
V. ACCOUNTS 9 
VI. ACTUARIAL POSITION OF THE PLAN 9 
 
Report of the External Auditor on the Accounts of the WTO Pension 10 
Plan for the Year Ending 31 December 2005 
Opinion of the External Auditor on the Accounts of the WTO Pension 12 
Plan for the Year Ending 31 December 2005 
 STATEMENT 1 13 
 Income and Expenditure Statement for the period 1 January – 31 December 2005 
 STATEMENT 2 14  Surplus account as of 31 December 2005  
STATEMENT 3 15 
 Balance Sheet as of 31 December 2005  SCHEDULE A 16  Source and Application of Funds for the Period 1 January – 31 December 2005  
SCHEDULE B 17 
 Investment Mandate Overview  SCHEDULE C 18  Performance and asset allocation 
 
SCHEDULE D 19  Investment performance since inception  SCHEDULE E 20 
 Exchange rates used for the valuation of assets in 2005 
 SCHEDULE F 21  Structure of the WTO Pension Plan  SCHEDULE G 22 
 Glossary of terms 
 ANNEX 1 23 
 Statement of Investment Principles  
ANNEX 2 24 
 Statement of Significant Accounting Policies WT/L/663 
Page 4  
 
I. INTRODUCTION 
1. The WTO Pension Plan was established on 1 January 1999 following the decision by the 
General Council on 16 October 1998 (WT/L/282) to te rminate the membership of ICITO in the 
United Nations Joint Staff Pension Fund on 31 Dece mber 1998 and to adopt the Regulations and 
Administrative Rules of the Plan. 
2. The Management Board of the Plan was duly constituted by the General Council in 
accordance with Article 4 of the Regulations on 26 March 1999. 
3. The General Council approved the Rules of Procedure of the Management Board on 
8 May 2001 (WT/L/402). 
4. The present report for the period from 1 January 2005 to 31 December 2005 has been 
prepared by the Management Board in accordance with  Article 5 of the Regulations of the Plan for 
presentation to the General Council and to Plan participants.  The annua l reports for 1999, 2000, 
2001, 2002, 2003 and 2004 were issued under c over of documents WT/GC/W/426, WT/GC/W/463, 
WT/L/497, WT/L/546, WT/L/583 and WT/L/628, respectively. 
II. STRUCTURE OF THE PENSION PLAN ON 31 DECEMBER 2004 
5. (a) Management Board
 
 The Management Board was composed as follows on 31 December 2005: 
Mrs. Esra Demir, Chairman 
Mr. Andrew Johnston Mr. Jean-Pierre Lapalme 
Mr. Nicholas Niggli Mr. Anthony Mistri 
Ms Rachel Shub Ms Paulette Planchette 
Mr. Pornvit Sila-On  
Members elected 
by the General 
Council Mr. Paul Rolian  
Members appointed 
by the Director-
General 
Mr. Breno Hermann Mr. Rolf Adlung 
Mr. Dirk Kranen Ms Monette David 
Mr. Jean-Marc Mignon Mr. Juan Marchetti 
Mr. Antoine Ruvebana  
Alternates elected 
by the General 
Council Mr. Shishir Priyadarshi  
Alternates appointed 
by the Director-
General 
Mr. Jan-Eirik Sørensen Observer on behalf of the beneficiaries 
Mr. Claude Mercier Alternate observe r on behalf of the beneficiaries 
 
 (b) Investment Committee  
  Please see paragraph 28, below.  (c) Secretary
 
  Robert Luther 
  - In-house support services  
   Jean-Pierre Helary 
   Christine Figuigui    TinaLise LeGresley  WT/L/663 
 Page 5 
 
  - Outsourced support services  
   Trianon S.A., Lutry  (d) Consulting Actuary
 
  Cameron Hannah (Mercer HR Consulting S.A.)  (e) Medical Adviser
 
  Dr. Catherine Mazeyrac 
 (f) Investment Analyst/Consultant  
  Edouard Stucki and Byron Beene (Watson Wyatt)  (g) Global Custodian
 
  The Northern Trust Company  (h) Fund Managers
 
  Houlihan Rovers (European real estate portfolio) 
  Pictet (actively managed emerging market equity portfolio)   Rogge Global Partners PLC (ac tively managed global bond portfolio) 
 Wellington Management International (t wo actively managed global equity 
portfolios) 
  
 (i) External Auditor
 
  Austrian Court of Audit. 6. An organizational chart is reproduced in Schedule F. 
III. MEETINGS OF THE MANAGEMENT BOARD 
7. The Management Board held seven meetings in  2005.  These took place on 25 January, 9 and 
10 March, 7 June, 14 July, 23 September, 13 Oct ober and 15 November 2005.  The agendas included 
as standing items the review of investment performance and a report by the Secretary on matters arising since the previous meeting of the Management Board. 
8. Regular progress reports were made available to the Plan participants and beneficiaries.  The 
remainder of this section of the Annual Report is de voted to a summary of th e main items of business 
dealt with by the Management Board in 2005. 
 Implementation of the revised investment strategy
 
9. The Management Board continued its work on the implementation of the revised investment 
strategy.  The search for a second global equity  manager was concluded with the selection of 
Wellington Management International Ltd which was awarded a second global equity mandate.  
Unlike the first mandate which has been in place si nce April 2000, the second mandate covers slightly 
fewer stocks and is a blend not of  fundamental research and quantitative research but of fundamental 
research and economic research. WT/L/663 
Page 6  
 
10. The choice of Crédit Suisse to manage a Swiss r eal estate mandate was reviewed in light of 
the long waiting list of clients waiting to join the foundation.  The Management Board examined 
possible alternatives and decided to opt for a Europe an real estate fund.  The mandate was offered to 
Warburg Henderson, subject to the ne gotiation of a satisfactory contract
2.  In November 2005, the 
assets earmarked for the real estate investment we re reinvested proportionally among the other asset 
classes in the revised investment strategy. 
11. An overview of the investment mandates is provided in Schedule B. 
12. As a further part of the implementation of th e revised investment strategy, the Management 
Board considered how currency hedgi ng could be introduced in order to protect the value of the Plan's 
investments against unfavourable exchange rate movements. 
 Review of investment performance  
13. As required under Article 5(d)(iv) of the Plan Regulations, a statement of the investment 
principles currently being followed by the Ma nagement Board is reproduced in Annex 1. 
14. Reports on investment performance were submitted to the Management Board at each 
meeting.  For 2005, the investment performance versus the benchmark was favourable.  A table 
summarizing investment performance and asset alloca tion is provided in Sche dule C.  A graph of 
investment performance since inception is reproduced in Schedule D. 
15. During the year, the dollar increased by 16%.  As the portfolio had approximately 31% of 
assets in US dollar denominated assets, the currency f actor alone contributed about 5% to 6% to the 
total return. 
16. Cash balances corresponding to accrued contri butions were swept by decision of the 
Management Board into various mandates in orde r to ensure rebalancing in accordance with the 
proportions set out into the revised investment strate gy approved by the Management Board in 2004.   
17. In November 2005 representatives of Wellington attended a meeting of the Management 
Board in order to present a progress report on the ex ecution of the Global Intersection mandate.  The 
Board confirmed its confidence in the investment process of the manager. 
 Actuarial valuation at 31 December 2004  
18. In light of the report by the consulting actuary on the actuarial position of the Plan as at 
31 December 2004, in which he noted that the current contribution rate of 22.5 % lay within an optimistic range of possible outcomes for calculating the long-term cost of the Plan, the Management 
Board decided to set up an open-ended working gro up to review the long-term sustainability of the 
Plan. 
 Role and responsibilities of the Secretary
 
19. As provided for under Rule A.11 of the Rules of Procedure of the Plan, the Management 
Board approved a document setting out the role a nd responsibilities of the Secretary of the Plan. 
                                                      
2 Concluded on 16 June 2006.  WT/L/663 
 Page 7 
 
 Procedure for the treatment of disability cases  
20. The working group established by the Management Board in 2004 to draft a set of procedures 
to govern the consideration of requests for determ ination of incapacity and inability to engage in 
gainful employment continued its work in 2 005.  In December the General Council approved 
amendments to Article 28 of the Plan Regulations  concerning the definition of partial disability and 
noted amendments to Section H of the Admini strative Rules reflecting the changes which the 
Management Board introduced for dealing with re quests for the determination of partial and total 
disability. 
 Payment of child benefits to beneficiaries of a partial disability benefit  
21. The Management Board agreed to instruct the Secretary that a participant in receipt of a 
partial disability benefit should be eligible for child benefits adjusted on a pro rata basis in the same 
proportion as the partial disability benefit. 
 Same-sex marriages  
22. In 2005, the Management Board was informed that the Director-General had decided to 
recognize same-sex marriages unde r the Staff Regulations and Rules and had requested the 
Management Board to consider taking similar ac tion under the Plan Regulations.  The Management 
Board took up the item on several occasions in 2005 and noted that it would be important to proceed 
carefully on the issue in light of its important lega l ramifications.  It was agreed that external legal 
advice should be sought and that the final decision to be taken by the Management Board should be 
applied with retroactive effect to any pending case.  At the end of 2005, the matter remained under 
review in the Management Board. 
 Insurance for the Sixth Ministerial Conference in Hong Kong (China)  
23. In line with the practice followed in the case of previous Ministerial Conferences, the 
Management Board requested the WTO Administrati on to take out insurance to protect the Plan 
against the enhanced death and disab ility risk associated with the a ttendance of a large concentration 
of Plan participants at the Sixth Ministerial Conf erence. Appropriate cover was  put in place by the 
Administration for the duration of the Conference. 
 Trianon self-service facility  
24. Work continued during 2005 on the introduction of  a web-based self-service facility for Plan 
participants.  The purpose of the fac ility is to provide participants w ith access to their pension file and 
the possibility to obtain their own pension estimates3. 
25. In the course of 2005, Trianon was invited to make a presentation to the Management Board 
on the services it is providing to the Plan. 
Transfer arrangement with the European Communities (EC) Pension Fund  
26. In the latter part of 2005, the Management Board agreed to invite the S ecretary to enter into 
discussions with the EC Pension Fund Secretariat on the conclusion of a transfer arrangement.  A 
draft exchange of letters between the two Secretaria ts was prepared and the Secretary authorized to 
proceed with the finalization of the arrangement4. 
                                                      
3 The facility was launched in March 2006. 
4 The transfer arrangement entered into force on 1 July 2006. WT/L/663 
Page 8  
 
 Purchase of service credits
 
27. The Management Board continued its consid eration of the possible introduction of a 
provision to allow participants to purchase additional years of contributory service.  In light of the 
views expressed by the consulting actuary on the pote ntial risks for the Plan of such a provision, the 
Management Board agreed not to take the matter any further at the present stage but to remain open to  
further discussion as required. 
 Investment Committee  
28. The Management Board decided not to make  appointments to the Investment Committee 
during the year.  The Management Board was advised by its investment analyst/consultant and will be 
considering the future of the Inv estment Committee over the coming year. 
IV. PARTICIPATION IN THE PENSION PLAN 
29. The following table shows the trends in the numb ers of participants and beneficiaries in the 
Pension Plan in the course of 2005. 
 2005 2004 
Active Members  695 710 
Pensioners  85 59 
 
 Participants in the Pension Plan in 2005  
 
 
Total number on 1 January 2005 
 Movements in 2005 
 
 - Entries  - Re-entries under the terms of 
Art. 15(b) of the Regulations 
 - Separations 
  
710 
  
 
45 
6 
 
66 
 
 Total number on 31 December 2005  
 
Breakdown of separations in 2005   - retirement 
 - early retirement 
 - deferred retirement  - withdrawal settlement  - transfer to UNJSPF  - deferment of decision 
 - death 
            -            disability  Total separations   
695 
   
9 
7 
- 
33 
2 
12 
1 
2 
 
66  WT/L/663 
 Page 9 
 
 Benefits paid by the Pension Plan
 
 
Type of benefit At 31 December 2004 New benefits 
in 2005 Benefits ended 
 in 2005 At 31 December 2005 
Retirement 26 10 - 36 
Early retirement 21 7 - 28 
Deferred retirement 4 - - 4 
Surviving spouse's benefit 1 1 - 2 
Partial /total disability 
benefit 4 2 - 6 
Child’s benefit 3 6 - 9 
Total benefits 59 26 - 85 
 
 
V. ACCOUNTS 
30. A statement of significant accounting policies is reproduced in Annex 2. 
31. The income and expenditure for the period 1 January – 31 December 2005 and surplus 
account as at 31 December 2005 are reproduced in Statements 1 and 2, respectively. 
32. The balance sheet as at 31 December 2005 is reproduced in Statement 3. 
33. The source and application of funds for the period 1 January – 31 December 2005 is 
reproduced in Schedule A. 
34. A glossary of terms to facilitate an understandi ng of the tables is reproduced in Schedule G. 
VI. ACTUARIAL POSITION OF THE PLAN 
 
35. The Consulting Actuary to the WTO Pension Plan has completed an interim actuarial 
assessment of the WTO Pension Plan effective 31 December 2005.  The interim assessment was 
carried out using the full membership data provide d by the WTO Pension Plan as at 31 December 
2005.  Based on the results of this actuarial asse ssment, the consulting actuary confirms that the 
actuarial position of the plan has improved relative to the formal actuarial valuation as at 31 December 2004.  This is mostly due to the fact th at the market value of the investments of the plan 
has increased significantly. 
 
 
    (signed) (signed)   ___________________________ __________________________ 
  Esra Demir Robert Luther 
  Chairman Secretary   WTOPP Management Board WTO Pension Plan  WT/L/663 
Page 10  
 
Report of the External Auditor on the Accounts of the WTO Pension Plan
 
for the Year Ended 31 December 2005  
 
 Rates of return
 
 
36. After negative nominal rates of return in 2001 (–10.13%) and 2002 (–18.31%) the 
WTO Pension Plan achieved positive nominal rate s of return in 2003 (10.01%), 2004 (4.47%) and 
2005 (23.71%). A comparison of the investment portfolios for the years 2004 and 2005 is given in the following table: 
 
ACTUARIAL RATE OF RETURN  31.12.2004  31.12.2005  
a. value of assets as of  01 Jan 195, 986,085 223,344,222 
b. value of assets as of  31 Dec 223, 344,222 296,529,427 
i. investment income 9,168,405 55,098,041 
Average assets = (a+b-i)/2 205,080,951 232,387,804 
Actuarial rate of return in nominal terms  
= i / average assets 4.47% 23.71% 
CPI for Switzerland 1.40% 1.00% 
Actuarial rate of return, net of inflation 3.07% 22.71% 
 
 
37. The External Auditor noted that the actuarial rate of return in nominal terms increased 
roughly fivefold in 2005 compared to 2004. Investme nt and other administrative expenses increased 
from CHF 1.43 million to CHF 2.02 million or by 41% (Statement 1). In  2005 management and 
consultancy fees of CHF 1.80 million accounted for a pproximately 50% of the investment and other 
administrative expenses, compared to the periodic benefits of CHF 3.64 million. 
Advisors to the Management Board  
 
38. Pursuant to Article 7 of the Regulations of th e WTO Pension Plan, the Director-General shall 
appoint advisors upon the recommendation of the Mana gement Board.  Accordingly, the Management 
Board decided at its 18th meeting in January 200 1 to establish an Investment Committee on a cost-
free basis.  However, the committee ceased to func tion at the beginning of 2003.  Since then the 
advisory function of the committee has been taken over by Watson Wyatt AG against fees. 
Internal audit  
 39. The external audit together with the internal aud it forms part of the audit function of an entity. 
As WTO will introduce an internal oversight function as of 2007, the External Auditor recommends extending the responsibilities of this unit to the WTO Pension Plan. 
Operating costs
 
 40. According to Article 5(f) of the Regulations of the WTO Pension Plan "All expenses incurred 
in administering the plan … shall be borne by th e Plan." The Balance Sheet 2005 includes a reserve of 
CHF 250,000 relating to operating costs potentially invoiced by WTO to the Plan.  The External 
Auditor noted that in 2005 as well as in previ ous years services rendered by WTO (personnel 
resources and office space) have not been charged to  WTO Pension Plan.  Reference is made to the  WT/L/663 
 Page 11 
 
"Report of the External Auditor on the Accounts of  the World Trade Organisation for the Financial 
Periods 2004 and 2005 of the Biennium 2004/ 2005" (included in document WT/BFA/W/142 
paragraph 117). 
Financial Rules and Regulations  
 41. The Regulations of the WTO Pension Plan do not refer to any financial rules and regulations 
governing the Plan.  The External Auditor reiterat es the recommendations raised in their previous 
reports, that the WTO Financial Rules and Regula tions should apply mutatis mutandis in cases where 
no specific rules in the Regulations of the Pension Plan are defined. 
42. The External Auditor recommends that the a pplied accounting procedures should be disclosed 
in the "Statement of Significant Accounting Polici es" contained in an Annex of the Annual Report. 
Budget
 
 43. The legal framework of the WTO Pension Plan (Regulations, Administrative Rules and Rules 
of Procedures) does not foresee any specific regul ation regarding the preparation of budget estimates 
as defined for WTO in their Financial Rules (WT/L/157) and Regulations (WT/L/156/Rev.1). 
44. The External Auditor recommends implementi ng an appropriate budgetary process in the 
WTO Pension Plan. 
Letter of Representation
 
45. Referring to the audit of the accounts of the WTO Pension for the year ended 31 December 
2003 the Secretary of the Plan was asked by the Ex ternal Auditor for a letter of representation to 
confirm the completeness, regularity and accuracy of the entries in the books. At its 39th Meeting the 
Management Board expressed "… the doubts of the Bo ard regarding the appropriateness of certain of 
the undertakings contained in the proposed le tter of representation …". The Management Board 
informed the External Auditor that it intended "… to revert at a later date to the question of the letter 
of representation." The External Auditor noted during the course of the audit of the 2005 accounts of the Pension Fund (i.e. in July 2006) that no furthe r action has been taken by the Management Board. 
46. Therefore the External Auditor reiterates his vi ew as already pointed out in his 2004 report, 
that the instrument of a representation letter is in accordance with intern ationally accepted auditing 
standards. As an essential part of the external aud it process, this has to be seen in the context of the 
opinion given by the external auditor. 
 
 
(signed) 
________________________________ 
Josef Moser 
President of the Austrian Court of Audit 
 WT/L/663 
Page 12  
 
Opinion of the External Auditor on the Accounts of the WTO Pension Plan
 
for the Year Ended 31 December 2005  
 
 47. The representatives of the Austrian Court of A udit have examined the appended Financial 
Statements contained in the Annual Report for 200 5, comprising Statements 1 to 3 and Schedules A 
and B of the WTO Pension Plan for the year ending 31 December 2005.  As a result of the examination, the opinion is given that these statements, which were prepared in conformity with the accounting policies described in Annex 2 of th e Annual Report for 2005 and applied on a basis 
consistent with that of the preceding financial period, present fairly the financial position of the 
WTO Pension Plan as at 31 December 2005 and the operations for 2005. 
48. The accounting system of the WTO Pension Plan was outsourced to Trianon
5, which prepared 
the accounts for 2005.  Trianon provided the report of  its external auditor including the financial 
statements for the year 2005 for information.  Trianon also provided the accounting transactions for 
the year 2005 to the representatives of the Austrian Court of Audit for examination.  This examination 
included a general review of the accounting procedur es and such tests of the accounting records and 
other supporting evidence, as were feasible in the circumstances. 
 
 
(signed) 
________________________________ 
Josef Moser 
President of the Austrian Court of Audit 
 
  
 
 
                                                     
 
5 Trianon Conseils SA, Lutry, Switzerland   WT/L/663
 Page 13STATEMENT 1  
 
Income and Expenditure Statement 
(Expressed in Swiss francs)  
Expenditure at 31.12.2005 at 31.12.2004 Income at 31.12.2005 at 31.12.2004 
Benefits    Contributions    
Lump sum    Participants 7,882,842 7,610,700 
Withdrawal settlement – Art. 26 938,669 308,471 Organization 15,765,658 15,221,384 
Commutation – Art. 23(c) & Art. 24(c) 1,988,002 1,593,383 Interest on validations 1,293 238 
Transfer to other organizations  288,721 337,230 Restorations – Article 18 4,313 - 
Interest on transfers 12,948 - Interest on restorations 232 - 
 3,228,340 2,239,084  23,654,338 22,832,322 
      
Periodic benefits    Transfer values    
Retirement benefit – Art. 23 1,895,920 1,046,678    
Early retirement benefit – Art. 24 1,365,751 1,073,434 Transfer from other organizations 1,296,563 - 
Surviving spouse benefit – Art. 29  103,905 21,510  1,296,563  
Child benefit – Art. 30 29,764 4,934    
Disability benefit – Art. 28 243,213 104,810    
 3,638,553 2,251,366    
      
Investment and Other Admin. expenses    Investment Income    
Currency revaluation - 129,338 Profit on securities 56,859,698 10,412,100 
Bank charges 1,107 856 Currency revaluation  334 - 
Audit costs 5,524 4,611 Interest on current accounts  37,083 2,839 
Management fees (see Schedule A, 
footnote 6 for breakdown) 1,595,582 1,116,340    
Consultancy fees 202,385     
Actuarial expenses 98,660 53, 425  56,897,115 10,414,939 
Administrative costs 117,011 130,518    
 2,020,269 1,435,088 Other income  11,875 6,000 
      
Excess income over expenditure  72,972,729 27,327,723 Excess expenditure over income    
 81,859,891 33,253,261  81,859,891 33,253,261 
(signed) 
_________________________ 
Esra Demir  
Chairman  
WTOPP Management Board (signed) 
____________________ 
Robert Luther 
Secretary 
WTO Pension Plan 
  WT/L/663 
Page 14   STATEMENT 2  
 
 
Surplus Account 
(expressed in Swiss francs)  
Debit at 31.12.2005 at 31.12.2004 Credit at 31.12.2005 at 31.12.2004 
   Excess income over expenditure   
72,972,729  
27,327,723 
      
      
      
      
      
Profit 72,972,729 27,327,723    
      
 72,972,729 27,327,723  72,972,729 27,327,723 
(signed) 
_________________________ 
Esra Demir  
Chairman  
WTOPP Management Board (signed) 
____________________ 
Robert Luther 
Secretary 
WTO Pension Plan 
   WT/L/663
 Page 15STATEMENT 3  
 
 
Balance Sheet 
(expressed in Swiss francs)  
Assets at 31.12.2005 at 31.12.2004 Liabilities at 31.12.2005 at 31.12.2004 
      
Securities 294,198,432 218,262,819 Capital 1.1  222,785,951 195,458,228 
Current accounts  2,316,881 5,078,862    
 296,515,313 223,341,681    
   Reserve funds    
   Operating cost 250,000 250,000 
      
Current assets    Current liabilities    
Withholding taxes to be recovered  9,717 994 Accrued expenses  520,747 308,271 
Contributions receivable  988 1,547    
Restoration amounts r eceivable 3,409 -    
 14,114 2,541    
      
      
   Profit  72,972,729 27,327,723 
 296,529,427 223,344,222  296,529,427 223,344,222 
(signed) 
_________________________ 
Esra Demir  
Chairman  
WTOPP Management Board (signed) 
____________________ 
Robert Luther 
Secretary 
WTO Pension Plan WT/L/663 
Page 16  
 
SCHEDULE A
 
 
 
Source and Application of Funds  
(expressed in Swiss francs ) 
 
Source  1.1.2005-31.12.2005 1.1.2004-31.12.2004 
   
Funds as at 1.1 223,344,222 195,986,085 
Receipt of contributions 23,654,338 22,832,322 
Transfer values 1,296,563 - 
Profit on securities 56,897,115 10,285,601 
Increase in current liabilities 212,476 30,414 
Other income 11,875 6,000 
 305,416,589 229,140,422 
Less:   
Application    
   
Settlement of benefits 6,866,893 4,490,450 
Expenditure6 2,020,269 1,305,750 
 8,887,162 5,796,200 
Funds as at 31.12  296,529,427 223,344,222 
 
                                                      
6 Including management fees totalling CHF 1,595,582 and broken down as follows: 
 
 BGI CHF 27,420 
 Northern Trust CHF 425,369  Pictet CHF 278,817 
 Rogge CHF 141,791 
 Wellington CHF 722,185  WT/L/663 
 Page 17 
 
 
SCHEDULE B  
 
Investment Mandate Overview  
 
Fund Manager Assets 
(in m 
CHF) % of 
Assets SAA* Asset Class Index 
Wellington Mgmt. 
Intl. Ltd 64.5 21.8% 21.0% Actively managed global 
equities MSCI World 
Developed 
Wellington Mgmt. 
Intl. Ltd 119.9 40.4% 39.0% Enhanced managed global 
equities MSCI World 
Developed 
Pictet & Cie 34.3 11.6 % 10.0% Actively managed 
emerging market equities MSCI Emerging 
Markets 
Rogge Global 
Partners PLC 60.2 20.3% 20.0% Actively managed foreign 
bonds, hedged Citigroup World 
Govt. Bond Index 
hedged into 
Houlihan Rovers SA 14.9 5.0% 5.0% Actively managed 
European real estate 
securities EPRA Europe 
Warburg  
Henderson** - - 5.0% Actively managed direct 
European real estate 6.5% 
Cash*** 2.7 0.9%     - 
Total      296.5 100% 100%  
 
 
Fund Manager Ex-
post 
TE* Expected 
TE* Added-
Value 
since 
inception IR since 
inception * Location Website 
Wellington 
Mgmt. Intl. Ltd - 1.5 – 2.5% 1.3% - Boston, 
MA; 
London 
England wellington.com 
Wellington 
Mgmt. Intl. Ltd 2.3 3 – 6% 1.6% 0.7 Boston, 
MA; 
London 
England wellington.com 
Pictet & Cie 4 6 – 9 % 2.4% 0.59 London, 
England pictet.ch 
Rogge Global 
Partners PLC - 1 – 2% 1% - London, 
England rogge.co.uk 
Houlihan Rovers 
SA - 3 – 4% 2.6% - Brussels, 
Belgium houlihanrovers.com 
Warburg 
Henderson** - - - - Hamburg, 
Germany Warburg-
henderson.com 
 
* TE = Tracking Error 
 IR = Information Ratio  SAA = Strategic Asset Allocation 
 
**  In negotiation   
*** Including Euro Cash Fund 
 
 WT/L/663 
Page 18  
 
SCHEDULE C
 
 
 
Performance and Asset Allocation  
 
 
Return Statistics (annualized)* 
Consolidation last 
quarter ytd over 
1 year over 
2 years over 
3 years since 
incept TE** IR** market value 
% of total 
Consolidated Securities 4,2% 25,8% 25, 8% 15,0% 13,7% 1, 8% 2,4 -0,3 296,6 
Custom Benchmark 4,5% 24,1% 24,1% 14,4% 14,5% 2,5% -- -- 100% 
          
Equities          
Consolidated Equities 5,7% 32,8% 32,8% 19,3% 19,1% 0,4% 2,1 -0,3 218,8 
Custom Benchmark 6,0% 30,9% 30,9% 18,1% 19,0% 1,1% -- -- 73,8% 
           Wellington (Intersection) 4,6% 28,6% 28,6% 16,8% 17,2% -2,9% 2,3 0,7 119,9 
 MSCI World 5,3% 27,0% 27,0% 15,7% 17,0% -4,5% -- -- 40,4% 
           Wellington (Opportunities) 4,6% -- -- -- -- 26,6% -- -- 64,5 
 MSCI World 5,3% -- -- -- -- 25,3% -- -- 21,8% 
           Pictet Emerging Markets 12,3% 57,7% -- -- -- 57,7% -- -- 34,3 
 MSCI EM 9,6% 55,3% -- -- -- 55,3% -- -- 11,6% 
          
Fixed Income          
Consolidated Fixed Income 0,0% 4,9% 4,9% 3,4% 3,0% 3,4% 1,0 0,0 62,9 
Custom Benchmark 0,0% 2,5% 2,5% 2,7% 2,5% 3,4% -- -- 21,2% 
           Rogge Global 0,0% -- -- -- -- 2,7% -- -- 60,2 
 Citi World Govt Hedged 0,0% -- -- -- -- 1,7% -- -- 20,3% 
           NT € and Cash         0,4 
         0,1% 
           CSAM Cash ***         2,3 
         0,8% 
          
Real Estate          
Consolidated Real Estate -0,8% -- -- -- -- 20,7% -- -- 14,9 
Custom Benchmark 2,6% -- -- -- -- 23,3% -- -- 5,0% 
          
 HR European Real Estate -0,8% -- -- -- -- 20,7% -- -- 14,9 
 Benchmark 2,6% -- -- -- -- 23,3% -- -- 5,0%            European Real Estate Funding expected in 2006 
 Benchmark          
          
 
 
* All mandates are calculated gross of fees (before f ees), with the exception of HR, which is calculated 
net of fees (after fees). 
 
** TE = Tracking error 
 IR = Information Ratio.  TE and IR shown for complete investment period. 
 
*** Although CSAM cash is shown for the total asset allocation, it is not used in the performance 
calculation 
 
  WT/L/663 
 Page 19 
 
 
SCHEDULE D  
 
 
Investment Performance Since Inception  
 
 
  
 
 
 
    
 
     
 
    
 
    
 The underperformance of the equity allocation as indicated in the graph above reflects the 
underperformance of one of the initial global equity managers who has since been terminated.  Since 
the termination of the previous global equity ma nager, the other global equity manager Wellington 
and the emerging market manager have outperfo rmed their benchmark individually and on an 
aggregate basis.    
  With the selection of Rogge, the aggregate performance of the fixed income component now 
exceeds its benchmark since inception. 5060708090100110120130140
 Aug
1999  Feb
2000  Aug
2000  Feb
2001  Aug
2001  Feb
2002  Aug
2002  Feb
2003  Aug
2003  Feb
2004 Aug
2004 Feb
2005 Aug
2005
Total Benchmark Eq. Total
Eq. Benchm ark FI Total FI BenchmarkWT/L/663 
Page 20  
 
SCHEDULE E
 
  
Exchange rates used for the valuation of assets in 2005
 
 
 
Currency Rate used for closing 
on 31.12.2005 
EUR 0.643 
USD 0.759 
JPY 89.556 
SEK 6.039 
GBP 0.442 
AUD 1.034 
CAD 0.886 
HKD 5.883 
NOK 5.138 
  * Data provided by Northern Trust 
 
 
Currency Breakdown as of 31 December 2005  
 
 
 
WTOPP: Currency Exposure as of 31.12.2005
CHF
23.9%
GBP
5.8%JPY
9.3%SEK
1.0%AUD
2.0%Emerging Markets
11.7%CAD
0.8%
EUR
13.6%USD
31.1%HKD
0.7%   WT/L/663 
 Page 21 SCHEDULE F  
STRUCTURE OF THE WTO PENSION PLAN  
 
 
  
  
 
  
  
 
  
 
 
 
  
 
  
 
  
PARTICIPANT S  
GENERAL COUNCIL 
 
CONSULTING ACTUARY 
 
ASSET MANAGEMENT SERVICES  
DIRECTOR-GENERAL 
 
MEDICAL ADVISER 
 
INVESTMENT COMMITTEE ADMINISTRATIVE 
SERVICES 
 
MANAGEMENT BOARD  
EXTERNAL AUDITOR 
INVESTMENT 
ANALYST/CONSULTANT WT/L/663 
Page 22  
 
 SCHEDULE G
 
 
GLOSSARY OF TERMS  
  
Accrued expenses  includes expenses incurred but not paid in the current financial year. 
 Active Investment Management is a form of portfolio manageme nt whereby the portfolio manager 
invests the assets in a manner different from the benc hmark in an attempt to produce higher returns 
than the benchmark.  The disadvantages of such a management style are characterised with higher 
management fees, higher trading costs as well as  the chance to significantly underperform the 
benchmark.    Actuarial expenses  includes expenses charged by the consultin g actuary for the provision of actuarial 
services. 
 
Administrative costs  includes costs incurred in the general administration of the Pension Plan. 
 Audit costs  includes costs (travel, per diem) incurred by the External Auditor in connection with the 
audit of the 2004 accounts.  
Consultancy fees  includes the fees charged by the investment analyst/consultant. 
 Contributions receivable  refers to contributions due in respect of contributory service in 2005 but 
received after 31 December 2005.  
Currency revaluation  represents exchange rate losses. 
 Information Ratio is defined as the outperformance of the investment manager above the index 
divided by the portfolio’s tracking error.  The inform ation ratio is used to represent a manager’s skill.  
Generally, any ratio over 0.30 is  thought of as having skill. 
 
Interest on validations  refers to interest payments made unde r Article 20(d) of the Plan Regulations. 
 Management fees  includes fees paid for the management of WTO portfolios.   
 Provision for operating costs refers to the reserve established to cover operating costs not currently 
charged to the Plan. 
 Regulations and Administrative Rules  refers to the Regulations and Administrative Rules adopted 
by the General Council on 16 October 1998. 
 
Tracking error is defined as the standard deviation of the portfolio’s outpe rformance versus the 
benchmark.  It is used as a measure to determine the risk of the portfolio versus its benchmark.  This 
measure should not be confused with absolute risk ; even though a portfolio has a very low tracking 
error, it can still be very risky due to the underlying  nature of the market in which it invests.  A 
tracking error for a passive mandate would be low—dependent upon the mandate, usually less than 
0.8.  Anything above this would be considered active.   
 
Withholding taxes to be recovered  includes amounts of withholding tax levied by the Swiss 
authorities and subject to recovery after 31 December 2005.  WT/L/663 
 Page 23 
 
 
 ANNEX 1  
 
Investment Principles  
 
 
1. Pursuant to Article 13 of the Regulations of the Pension Plan and Rule A.9 of the Rules of 
Procedure, the Management Board shall be responsib le for the secure investment of all Plan assets, 
the formulation of investment policies after taking appropriate professional advice, and the 
appointment of investment manage rs to implement that policy. 
 
2. The investment strategy of the Plan is based  on an asset allocation designed to ensure the 
adequate funding of the Plan's liabilities over the long term.  A careful balance is drawn between 
maximization of returns on the assets of the Plan an d the maintenance of a reasonable level of risk.  
The strategy is geared to achieve a long-term rate of return of 3.5% ne t of price inflation, which is the 
assumption on which the feasibility study and contribu tion rates of the Plan were originally based. 
 
3. The WTOPP’s three asset classes are defined by  differences in their expected response to 
economic conditions, such as price inflation or cha nges in interest rates and are weighted in the 
portfolio by considering their expect ed returns, risk and correlations. 
 4. Derivatives may be used within the globa l hedged fixed income mandate for hedging 
purposes, where they provide the opportunities to ach ieve the objective of the Plan more efficiently 
than would be the case through the direct dealing in  underlying securities.  Derivative instruments for 
this mandate are restricted to forward foreign cu rrency contracts, futures, covered bond options and 
interest rate options.  Leverage and net short positions are not allowed. 
 
 
 
  (signed) (signed)  __________________________ ________________________   Esra Demir Robert Luther   Chairman Secretary 
  WTOPP Management Board WTO Pension Plan WT/L/663 
Page 24  
 
 ANNEX 2
 
 
Statement of Significant Accounting Policies  
  
1. Pursuant to Article 14(a) of the Regulations of  the Pension Plan, the unit of account of the 
Pension Plan is the Swiss franc.  For practical re asons, the current United Nations operational rates of 
exchange are used for the conversion of other currenc ies into the Swiss franc, except in the case of the 
investment portfolios where the rates shown in Schedule C were used for valuation purposes. 
 
2. The accounting year is 1 January to 31 December. 
 3. Pursuant to Article 13 of the Regulations of the Plan and Rule A.8 of the Rules of Procedure, 
the Management Board shall be responsible for the financial security and probity of the Plan and in 
particular the maintenance of its actuarial ba lance and of financial controls and accounts. 
 
4. Pursuant to Article 5(e) of the Regulations of the Plan and Rule C.1 of the Rules of 
Procedure, an audit of the accounts of the Plan sh all be made annually by the External Auditor, 
namely the External Auditor of the WTO.  The provisions of Chapter XI ("External Audit") and the Appendix ("Additional terms of reference governing external a udit") of the WTO Financial 
Regulations shall apply mutatis mutandis  to the audit. 
 
    
  (signed) (signed) 
 ___________________________ ___________________________   Esra Demir Robert Luther   Chairman Secretary   WTOPP Management Board WTO Pension Plan  
 
__________