WORLD TRADE  
ORGANIZATION  WT/L/546 
5 December 2003 
 (03-6535) 
General Council 
15-16 and 18 December 2003  
 
 
 
 
 
WTO PENSION PLAN 
 
  
ANNUAL REPORT OF THE MANAGEMENT BOARD 
 
FOR THE YEAR ENDING 31 DECEMBER 2002
1 
 
 
                                                      
1 This Report is published in accordance with  Article 5 of the Regulations of the Plan. WT/L/546 
Page 2    
TABLE OF CONTENTS  
 
PAGE  
 
I. INTRODUCTION 3 
II. STRUCTURE OF THE PENSION PLAN 3 
III. MEETINGS OF THE MANAGEMENT BOARD 4 
IV. PARTICIPATION IN THE PENSION PLAN 6 V. ACCOUNTS 6 
VI. ACTUARIAL POSITION OF THE PLAN 7 
 
 Report of the External Auditor on the Accounts of the WTO Pension for the 8 
 Financial Year Ended 31 December 2002 
 Opinion of the External Auditor on the Accounts of the WTO Pension Plan 10 
 for the Year Ended 31 December 2002  
 
STATEMENT 1 11 
 Income and Expenditure Statement for the period 1.1.2002 – 31.12.2002  
STATEMENT 2 12 
 Surplus Account as of 31 December 2002 
 STATEMENT 3 13 
 Balance Sheet as of 31 December 2002 
 
SCHEDULE A 14 
 Source and Application of Funds for the Period 1.1.2002 – 31.12.2002  SCHEDULE B 15 
 Return on portfolios in 2002  SCHEDULE C 16 
 Exchange rates used for the valuation of assets in 2002  SCHEDULE D 17 
 Structure of the WTO Pension Plan  SCHEDULE E 18  
 Glossary of terms  ANNEX 1 19 
 Statement of Investment Principles  ANNEX 2 20 
 Statement of Significant Accounting Policies  WT/L/546 
 Page 3 
  
 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 terminate the membership of ICITO in the United Nations Joint Staff 
Pension Fund on 31 December 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 present report for the period from 1 January 2002 to 31 December 2002 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 the Plan participants.  The annual reports for 1999, 2000 and 2001 were issued 
under cover of documents WT/GC/W/426, WT/GC/W/463 and WT/L/497, respectively.  Individual 
statements of account will be made available to all participants together with the Annual Report. 
 
II. STRUCTURE OF THE PENSION PLAN 
4. (a) Management Board  
 
The Management Board was composed as follows on 31 December 2002: 
 
Ambassador Mary Whelan, Chairman 
Mr. Andrew Johnston Mr. Jean-Pierre Lapalme 
Mr. Iba Mar Oulare Mr. Hector Millan 
Ms Andréa Saldanha da 
Gama Watson Mr. Anthony Mistri 
Mr. Terry Collins-
Williams Members elected by 
the General Council 
Mr. Paul Rolian Members appointed by 
the Director-General 
Vacant Mr. Jacques Chabert 
Mr. Jean-Marc Mignon Ms. Monette David 
Mr. Xiaodong Wang Mr. Zdenek Drabek 
Ms Lai-Peng Yap Alternates elected by 
the General Council 
Mr. Jan-Eirik Sørensen Alternates appointed by 
the Director-General 
 
Investment Committee    
 
Mr. Kurt Feller   
Mr. Boudwijn S.M. G. Schoen   (b) 
Mr. Hans R. Spillmann 
   
(c) 
  
 
  
  Secretary
 
Robert Luther - Support services
 
 Jean-Pierre Helary 
 Christine Dresti WT/L/546 
Page 4    
Consulting Actuary  
 (d) 
Cameron Hannah (Mercer HR Consulting S.A.). 
  
Medical Adviser  
 (e) 
Dr. H. Celton, Director, United Nations Joint Medical Service. 
  
Global Custodian  
 (f) 
The Northern Trust Company. 
  
Fund Managers  
 
Barclays Global Investors (BGI) (passive portfolios)2. 
ING Investment Management (active portfolio)3. 
Wellington Management International (active portfolio). (g) 
Pictet & Cie (money market account) 
  
External Auditor  
 (h) 
Dr. Franz Fiedler (President of the Austrian Court of Audit) 
 
5. An organizational chart is reproduced in Schedule D. 
 
III. MEETINGS OF THE MANAGEMENT BOARD 
6. The Management Board held four meetings in 2002.  These took place on 25 February, 1 August, 
3 September and 18 November 2002.  The agendas included as a standing item the review of investment performance.  Other items considered during 2002 included the establishment of an Investment Committee, 
the review of the investment strategy, the actuarial valuation at 31 December 2002, the conclusion of 
transfer agreements and the outsourcing of specialist support services.  These items are dealt with in greater detail below. 
 
7. Regular progress reports were made available to the Plan participants. 
 
Review of Investment Performance
 
 8. As required under Article 5(d)(iv) of the Plan Regulations, a statement of the investment principles 
currently being followed by the Management Board is reproduced in Annex 1. 
 
9. Reports on investment performance were submitted to the Management Board at each meeting.  In August 
2002, the Management Board decided in the light of the continuing unfavourable state of the equity market to sweep all new contributions into a Swiss franc money market account with Pictet. 
 
10. In November 2002, representatives of ING attended a meeting of the Management Board in order to 
present a progress report. 
 
                                                      
 2 A "passive" fund manager manages a portfolio by linking the investments to a given index so that the 
portfolio value moves with that index. 
 
 3 An "active" fund manager manages a portfolio by selecting investments in a manner designed to achieve 
outperformance of a benchmark (i.e. reference index) over time.  WT/L/546 
 Page 5 
  
 11. The performance of the BGI passive portfolios, the ING and Wellington active portfolios and the Pictet 
money market account over the period ending 31 December 2002 is summarized in Schedule B. 
 
12. The Plan achieved a nominal rate of return of – 18.31%, corresponding to a real rate of return of -19.21% 
after deduction of the movement of 0.90 % in the Swiss cost-of-living index in 2002.  This result reflected the persisting gloominess on the world’s stock markets during 2002.  It is recalled that the long-term target 
for the Plan is a real rate of return of 3.5%. 
 Establishment of an Investment Committee
 
 
13. In February 2002, the Management Board designated Messrs. Feller, Schoen and Spillmann as members of 
the Investment Committee4, with the Chairman of the Management Board and the Secretary acting as 
observers.  The Investment Committee advised the Management Board on the investment strategy and consequent investment mandates, measured the performance of fund managers and assessed their 
compliance with their respective mandates, and reported to the Management Board at regular intervals. 
 14. The Investment Committee met on its own and with the Management Board in order to begin its review of 
the investment strategy. 
 
15. The Management Board continued its deliberations on the granting of observer status to a participants’ 
representative on the Investment Committee. 
 
Actuarial Valuation at 31 December 2001
 
 
16. As required under Article 9(a) of the Regulations, the first triennial actuarial valuation of the Plan  was 
carried out in the course of the year.  The main conclusions of the consulting actuary were that there had been a large increase in the liabilities of the Plan due to the increase in the active workforce and that the 
performance of the investments had fallen short of expectations, particularly in 2001.  The low investment 
performance had had the effect of increasing the normal contribution rate, whereas the increase in the active workforce had had the effect of decreasing the normal contribution rate slightly. 
 
17. The Management Board approved the recommendation of the consulting actuary to maintain the 
contribution rate at 22.5%, subject to the need for monitoring on an annual basis, in the event that the assets 
continued to perform below expectations. 
 
Transfer Agreements
 
 18. Following the approval by the Management Board and General Council in 2001 of a transfer agreement 
with the Organization for Economic Cooperation and Development, further agreements were prepared with the other Coordinated Organisations, namely the Council of Europe, the European Centre for Medium-
Range Weather Forecasts, the European Space Agency, the North Atlantic Treaty Organization and the 
Western European Union.  These agreements were approved by the Management Board and General Council in the course of the year. 
 
19. The Secretary also had contacts with his counterparts in the International Monetary Fund and World Bank 
with a view to the establishment of transfer agreements with those plans.   
 
Outsourcing of Specialist Support Services to Trianon Conseils SA, Lutry, Switzerland  
 
20. The interface with the payroll system and the historization of the individual data were completed in the 
course of the year.  The configuration of the Trianon software to fit the Plan design was also completed by 
                                                      
 4 Mr. Spillmann  subsequently resigned from the Investment Committee on 18 December 2002. WT/L/546 
Page 6    
the end of the year.  As provided for under the contract, Trianon prepared the accounts for 2002.  The 
Trianon link became fully operational at the beginning of 2003. 
 
IV. PARTICIPATION IN THE PENSION PLAN 
21. The following table shows the trends in the numbers of participants and beneficiaries in the Pension Plan in 
the course of 2002. 
 
Participants in the Pension Plan in 2002  
 
Total number on 1 January 2002 618 
 
Movements in 2002 
 
- entries 
- separations 
  
 
 
105 
57 
 
Total number on 31 December 2002 666 
 
Breakdown of separations in 2002  
- retirement 
- early retirement 
- deferred retirement 
- withdrawal settlement 
- partial disability benefit 
- transfer to UNJSPF 
- deferment of decision  
  
4 
6 
1 
29 
2 
1 
14 
 
Beneficiaries of the Pension Plan on 31 December 2002  
 
Type of benefit At 31 December 2001 New beneficiaries 
in 2002 At 31 December 2002 
Retirement 5 4 9 
Early retirement 9 6 15 
Deferred retirement 35 1 4 
Partial disability benefit  2 2 
Total benefits 17 13 30 
 
V. ACCOUNTS 
22. A statement of significant accounting policies is reproduced in Annex 2. 
 23. The income and expenditure for the period 1.1.2002 – 31.12.2002 and surplus account as at 31.12.2002 are 
reproduced in Statements 1 and 2, respectively. 
 
24. The balance sheet as at 31.12.2002 is reproduced in Statement 3. 
 25. The source and application of funds for the period 1.1.2002 – 31.12.2002 is reproduced in Schedule A. 
 
26. A glossary of terms to facilitate an understanding of the tables is reproduced in Schedule E. 
                                                      
5 One beneficiary was overlooked in the annual report for 2001.  WT/L/546 
 Page 7 
  
  
VI. ACTUARIAL POSITION OF THE PLAN 
27. The consulting actuary to the WTO Pension Plan completed an interim actuarial assessment of the WTO 
Pension Plan as at 31 December 2002.  This assessment was based on the actuarial valuation at 
31 December 2001 adjusted for group membership data provided by the Secretariat.  The consulting actuary concluded that the actuarial position of the Plan had deteriorated relative to the position at 
31 December 2001.  This was mostly due to the very poor return on investments in 2002.  Bearing in mind 
the long-term nature of the Plan, the consulting actuary recommended that contributions and benefits should remain unchanged.  The situation should continue to be monitored closely. 
 
 
 
 
 
  
 (signed) (signed)  
 ________________________________ __________________________________  H.E. Mr. Stefán Jóhannesson Robert Luther 
  Chairman Secretary 
  WTOPP Management Board WTO Pension Plan  WT/L/546 
Page 8    
 
Report of the External Auditor on the Accounts of the WTO Pension Plan  
for the Year Ended 31 December 2002  
 
 
According to Rule C.1 of the Rules of Procedure of the Management Board, the External Auditor of the 
WTO is also appointed as External Auditor of the WTO Pension Plan.  The Austrian Court of Audit was appointed as External Auditor of the WTO and WTO Pension Plan for the financial years 2002 to 2006. 
 
The continuing negative economic trend in 2002 led to a further deterioration in the performance of the 
investments of the Pension Plan.  In contrast with the first two years of the Pension Plan (1999 and 2000), the years 2001 and 2002 each closed with a negative return on investments. 
 
Financial Management of the Plan
 
Management Board  
 
The auditor pointed out that the responsibility for the balance of the Pension Plan finally lies with the 
Management Board. This was especially of importance for the year 2002 when a real rate of return of –19.21% was achieved, leading to a decline in the value of assets from CHF 183,154,014 (01.01.2002) to 
CHF 163,368,411 (31.12.2002), i.e. CHF –19,785,603. 
 
The auditor recommended that the value of the assets should continue to be carefully monitored on a 
regular short-term basis in order to detect any further deterioration of the assets in good time. 
 
In this context and based on the experience of other pension systems, early and smooth steps can be taken 
in order to avoid more radical measures in the longer term. 
 
Investment Committee
 
 
Pursuant to Article 7 of the Regulations of the WTO Pension Plan, the Director-General shall appoint 
advisors upon the recommendation of the Management Board.  In early 2002 an Investment Committee 
was established consisting of three external experts to advise the Management Board on investment strategy.  At the end of 2002 resp. beginning of 2003 two members of the Investment Committee resigned 
and the Committee effectively ceased to function. 
 
In mid 2003 one member was informed
6 by the Secretary on instruction of the Management Board that  
“…his services on the Investment Committee were no longer required."  
 Financial Rules and Regulations
 
 
The Regulations of the WTO Pension Plan do not refer to the application of any financial rules and regulations governing the Plan.  The auditor recommended, therefore, that the WTO Financial Rules and 
Regulations should apply, mutatis mutandis
, to the Plan, particularly since: 
 
• the accounting of the Plan was outsourced to a third party, and 
• according to Rule C.1 of the Rules of Procedure, the External Audit has to be carried out 
according to the WTO Financial Regulations. 
 
                                                      
6 Document WTOPP(03)21, 16 June 2003  WT/L/546 
 Page 9 
  
 Operating Costs  
 
According to Article 5(f) of the Regulations of th e WTO Pension Plan “...all expenses incurred in 
administering the plan  .... shall be borne by the Plan.”  A reserve for operating costs was set up in 1999 and 
credited on a yearly basis with an amount of CHF 250,000, accumulating to CHF 1,000,000 in 2002. 
 
No charge has so far been made by the WTO.  The External Auditor recommends, therefore, that the reserve be wound up or, failing that, maintained at a level corresponding to one year of operating cost. 
 
Administration of the Plan
 
According to Article 5(d)(iv) of the Regulations of the WTO Pension Plan “... a statement of the investment 
principles being followed by the Management Board, ...” is to be presented to the WTO General Council 
and to the participants of the Plan.  This statement, contained in Annex 1 relates to document 
WTOPP(99)147 and document WTOPP(99)26 Rev.28. 
 
The external auditor recommends that the investment principles of the WTO Pension Plan should be 
subject to a review through the Management Board three years after their approval and in consideration of the negative development in the years 2001 and 2002. 
 
  
 
 
(signed) 
________________________________ 
Franz Fiedler 
President of the Austrian Court of Audit
 
 
                                                      
 7 ECOFIN Investment Consulting AG, Zurich, Switzerland :  "Investment Strategy for WTO Pension Plan, 
28 April 1999". 
 8 WTO Pension Plan, Management Board, Draft Record of the Sixth Meeting held on 29 June 1999, 
paragraph 18 :  "approval of the structure of mandates for the implementation of the long term strategy". WT/L/546 
Page 10    
 
Opinion of the External Auditor on the Accounts of the WTO Pension Plan for the  
Year Ended 31 December 2002  
 
 
The representatives of the Austrian Court of Audit have examined the appended Financial Statements contained in 
the Annual Report for 2002, comprising Statements 1 to 3, Schedules A, B and C and the Annexes 1 and 2, of the WTO Pension Plan for the year ended 31 December 2002.  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 the 
Annual Report for 2002 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 2002 and the operations for 2002. 
 
The accounting system of the WTO Pension Plan was outsourced to Trianon
9, which prepared the accounts for 2002.  
Trianon provided the report of its external auditor including the financial statements for the year 2001 for 
information.  Trianon also provided the accounting transactions for the year 2002 to the representatives of the 
Austrian Court of Audit for examination.  This examination included a general review of the accounting procedures and such tests of the accounting records and other supporting evidence, as were feasible in the circumstances. 
  
 
  
 
(signed) 
________________________________ 
Franz Fiedler 
President of the Austrian Court of Audit 
 
.................. 2003  
                                                      
9 Trianon Conseils SA, Lutry, Switzerland  
  WT/L/54 6
 Page 11STATEMENT  1 
Income and Expenditure Statement 
(Expressed in Swiss francs)  
Expenditure at 31.12.2002 at 31.12.2001 Income at 31.12.2002 at 31.12.2001 
Benefits    Contributions    
Lump sum    Participants 6,387,831 5,890,159 
Withdrawal settlement – Art. 26 796,844 607,959 Organization 12,775,658 11,779,487 
Commutation – Art. 23(c) & Art. 24(c) 1,777,366 1,747,638 Transfer from other organizations 19,775 - 
Transfer to other organizations 57,818 - Interest on validations 91 349 
 
2,632,028 2,35
5,597  19,183,355 17,669,995 
Periodic benefits    Investment Income    
Retirement benefit – Art 23 354,066 224,868 Interest on current accounts 3,746 12,241 
Early retirement benefit – Art 24 684,878 270,966 Interest on deposit accounts - 2,551 
Partial disability benefit – Art 28 45,627 -    
Children benefit – Art. 30 - 972  3,746 14,792 
 
1,084,571 496,
806 Other income  - 28,429 
Investment and Other Admin. expenses       
Loss on securities 34,306,761 19,183,266    
Securities revaluation - 3,707,039    
Currency revaluation 6,916 63,558    
Bank charges 641 1,011    
Audit fees 14,900 10,000    
Management fees 616,567 620,569    
Actuarial expenses 105,850 32,760    
Administrative costs 40,175 50,000    
 35,091,810 23,668,203 Excess expenditure over income  19,621,308 8,807,390 
 38,808,409 26,520,606  38,808,409 26,520,606 
(signed) 
_________________________ 
H.E. Mr. Stefán Johannesson 
Chairman 
WTOPP Management Board (signed) 
____________________ 
Robert Luther 
Secretary 
WTO Pension Plan  WT/L/546 
Page 12  
 
STATEMENT  2 
 
Surplus Account 
(expressed in Swiss francs)  
Debit at 31.12.2002 at 31.12.2001 Credit at 31.12.2002 at 31.12.2001 
Excess expenditure over income 19,621,308 8,807,390 Dissolution currency revaluation   5,029,727 
      
  -    
  -    
Provision for administration fees 250,000 250,000    
      
   Loss 19,871,308 4,027,663 
     
 19,871,308 9,057,390  19,871,308 9,057,390 
(signed) 
_________________________ 
H.E. Mr. Stefán Johannesson 
Chairman  
WTOPP Management Board (signed) 
____________________ 
Robert Luther 
Secretary 
WTO Pension Plan 
  
  WT/L/54 6
 Page 1 3STATEMENT  3 
Balance Sheet 
(expressed in Swiss francs)  
Assets at 31.12.2002 at 31.12.2001 Liabilities at 31.12.2002 at 31.12.2001 
      
Securities 162,683,346 182,972,742 Capital 1.1 181,724,868 185,752,531 
Current accounts 679,602 176,094    
 163,362,948 183,148,836    
   Reserve funds    
   Operating cost 1,000,000 750,000 
      
Current assets    Current liabilities    
Withholding taxes to be recovered 1,311 5,177 Benefits due to participants - 455,945 
Validation receivable 3,240 - Contributions payable - 319 
Contributions receivable 911 - Accrued expenses 514,850 222,881 
 5,462 5,177  514,850 679,145  
      
      
Loss 19,871,308 4,027,663    
 183,239,718 187,181,676  183,239,718 187,181,676 
(signed) 
_________________________ 
H.E. Mr. Stefán Johannesson 
Chairman  
WTOPP Management Board (signed) 
____________________ 
Robert Luther 
Secretary 
WTO Pension Plan 
 WT/L/546 
Page 14    
SCHEDULE A
 
 
 
Source and Application of Funds  
(expressed in Swiss francs ) 
 
Source  1.1.2002-31.12.2002 1.1.2001-31.12.2001 
   
Funds as at 1.1 183,154,014 194,959,947 
Receipt of contributions 19,183,355 17,669,995 
Increase in current liabilities - 466,806 
Other income - 28,429 
 202,337,369 213,125,177 
Less:   
Application    
   
Loss on investments 34,309,931 17,909,344 
Settlement of benefits 3,716,599 2,852,403 
Expenditure 778,133 964,340 
Decrease in current liabilities 164,295 - 
Decrease in reserve funds - 8,245,076 
 38,968,958 29,971,163 
Funds as at 31.12 163,368,411 183,154,014  WT/L/546 
 Page 15 
  
 SCHEDULE B
 
 
RETURN ON PORTFOLIOS IN 2002 
Portfolio Market value at 
31 December 2002 
(in CHF) Return on portfolio 
in 
2002 Movement of 
benchmarks in 2002 
Swiss bonds (BGI) 37,754,319 9.51% 10.23% 
Global bonds ex-Switzerland (BGI) 34,462,680 -0.65% -0.53% 
Swiss equities (BGI) 18,452,054 -24.58% -25.12% 
European equities ex-Switzerland (BGI) 16,389,477 -32.24% -33.09% 
Global equities ex-Switzerland (ING) 19,014,865 -34.57% -33.25% 
Global equities ex-Switzerland (Wellington) 30,705,753 -32.79% -33.25% 
Money Market Fund CHF (Pictet) 5,904,198 0.12% * N.A. 
* Performance since inception (10.10.2002)  
 WT/L/546 
Page 16    
SCHEDULE C  
 
EXCHANGE RATES USED FOR THE VALUATION OF ASSETS IN 2002  
 
 
Currency Rate used for closing 
on 31.12.2002 
ING portfolio EUR 1.4510 
 USD 1.3827 
 JPY 0.0117 
 GBP 2.2260 
   
Wellington portfolio EUR 1.4510 
 USD 1.3827 
 JPY 0.0117 
 SEK 0.1587 
 GBP 2.2260 
 AUD 0.7786 
 CAD 0.8752 
 HKD 0.1773 
 SGD 0.7972 
 NOK 0.1996 
   
BGI portfolios USD 1.3827  
  WT/L/54 6
 Page 1 7SCHEDULE  D 
STRUCTURE OF THE WTO PENSION PLAN  
 
 
 
 
PARTICIPANTS  
GENERAL COUNCIL
 
CONSULTING ACTUARY 
 
ASSET MANAGEMENT SERVICES  
DIRECTOR-GENERAL
 
MEDICAL ADVISER 
 
INVESTMENT COMMITTEE ADMINISTRATIVE 
SERVICES 
 
MANAGEMENT BOARD  
EXTERNAL AUDITOR WT/L/546 
Page 18  
 
 SCHEDULE E
 
 
GLOSSARY OF TERMS  
 
 
Accrued expenses  includes expenses incurred but not paid in the current financial year. 
 
Actuarial expenses  includes expenses charged by the consulting actuary for the provision of actuarial 
services.  
Administrative costs  includes costs incurred in the general administration of the Pension Plan. 
 Audit fees  includes fees charged by the External Auditor in connection with the audit of the 2001 
accounts. 
 Benefits due to participants  includes benefits due but not paid in the current year.  From 2002 onwards 
these amounts are included in the actuarial valuation and are no longer shown on the balance sheet. 
 
Contributions receivable  refers to contributions due in respect of contributory service in 2002 but 
received after 31.12.2002.  
Currency revaluation  represents the exchange rate losses on the Crédit Suisse US$ account. 
 Interest on validations  refers to interest payments made under Article 20(d) of the Plan Regulations. 
 
Management fees  includes fees paid to fund managers for the management of WTO portfolios.  In 2002 
these fees amounted to CHF 124,363 for BGI, CHF 102,727 for ING, CHF 17 1,646 for Wellington and 
CHF 217,830 for Northern Trust. 
 Provision for operating costs  refers to the reserve established to cover operating costs not currently 
charged to the Plan. 
 Transfer from other organizations  refers to an amount received in ap plication of the transfer agreement 
with the United Nations Joint Staff Pension Fund. 
 Validation receivable refers to an amount due in respect of a validation elected in 2002 but received after 
31.12.2002. 
 
Withholding taxes to be recovered  includes amounts of withholding ta x levied by the Swiss authorities 
and subject to recovery after 31.12.2002.   WT/L/546 
 Page 19 
 
 
 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 responsible for the secu re investment of all Plan assets, the formulation 
of investment policies after taking appropriate professional advice, and the appointment  of investment  
managers 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 and the maintenance of a reasonable level of risk.  The strategy is 
geared to achieve a long-term rate of return of 3.5% net of price inflation, which is the assumption on which the feasibility study and contribution ra tes of the plan were originally based. 
 
3. Given that the Plan is expected to enjoy greater freedom in its investment strategy over the medium 
term, during which period contributions are expected to exceed benefit payments, and given that 
achievement of the objectives of the Plan can be facilitated by investing in foreign as well as Swiss 
assets, the Management Board has adopted the following breakdown of assets as set out in document WTOPP(99)14, Section 1: 
 
0% - 15% in Swiss bonds, 
15% - 20% in foreign bonds, 
10% - 15% in Swiss equities, 
50% - 70% in foreign equities. 
 
4. At its sixth meeting held on 29 June 1999 (document WTOPP(99)26/Rev.2, paragraph 18), the 
Management Board also adopted the following investment strategy: 
 
 
Bonds 
CHF Bonds 
Global Equities 
CHF Equities 
Global 
including 
Europe Equities 
Europe 
Relative allocation 16% 16% 13% 42% 13% 
Absolute allocation 
(in million CHF) 25 25 20 65 20 
Active mandate - - - 2 - 
Passive mandate 1 1 1 - 1 
 
 
(signed) 
_________________________ 
H.E. Mr Stefán Johannesson 
Chairman  
WTOPP Management Board (signed) 
____________________ 
Robert Luther 
Secretary 
WTO Pension Plan 
 WT/L/546 
Page 20  
 
 ANNEX 2  
 
Statement of Signific ant Accounting Policies  
 
1. Pursuant to Article 14(a) of the Regulations of the Pension Plan, the unit of acco unt of the Pension Plan 
is the Swiss franc.  For practical reasons, the curr ent United Nations operational rates of exchange are 
used for the conversion of other currencies into th e 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 balance 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 shall 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 audit”) of the WTO Financial Regulations shall apply mutatis 
mutandis  to the audit. 
 
 
  
 (signed) (signed) 
 ________________________________ __________________________________  H.E. Mr Stefán Jóhannesson Robert Luther 
  Chairman Secretary 
  WTOPP Management Board WTO Pension Plan   
 
__________