CM(2007)159 11 October 20071
1012 Meeting, 27-29 November 2007
11 Administration and Logistics
11.6 Management Board of the Pension Reserve Fund –
2nd report of the Management Board to the Committee of Ministers
Item to be prepared by the GR-AB at its meeting on 8 November 2007
1.1 The Committee of Ministers, at its 818th Delegates meeting (Point 11.4), adopted the Resolution Res(2002)53 to create a Pension Reserve Fund (PRF) designed to contribute to the financing of the future pension obligations of Member states. The PRF was set up on 1 January 2003. A revision of its statutes took place in 2006, at the 954th Delegates meeting (cf. Resolution Res(2006)1).
1.2 In accordance with Article 6.2 of the Statute of the PRF, the Management Board must report twice a year to the Committee of Ministers on the status of the PRF. The first report was presented to the GR-AB on 21 June 2007 and then to the Ministers’ Deputies, at its 1001st Meeting of 5 July 2007. This report constitutes the 2nd report of the year 2007.
2. ACTIVITIES OF THE MANAGEMENT BOARD
2.1 During the first half of 2007, the Management Board has held two meetings where the following decisions were unanimously taken:
- Provisional investments: alternatives to bank deposits were considered. A decision was taken to continue to place the funds of the PRF in bank deposits.
- Custodian Bank: Société Générale Securities Services was selected after a joint call for tender with the OECD.
- A decision on the long-term investment strategy, strategic asset allocation and Socially Responsible Investments policy was taken. This result was presented to the GR-AB on 21 June 2007 and was approved by the Ministers’ Deputies on 5 July 2007.
- Selection of investment vehicle: shares will be managed within discretionary mandates by two asset managers and the fixed income and real estate parts will be placed in pooled funds.
- Selection of asset managers - after a call for tender, the following asset managers were appointed:
- Equity mandates: Pictet and IDEAM
- Fixed income: Government Bonds - State Street Global Advisors
Corporate Bonds - Pioneer
3. INVESTMENTS OF THE PRF
3.1 The funds of the PRF have been placed during 2007 in bank deposits – one and three months - with Société Générale in Strasbourg.
3.2 The new investment structure will be implemented before the end of the year.
3.3 In July 2007, the funds of the PRF totalled 73 million Euro; all Member countries contributions had been received except for “the former Yugoslav Republic of Macedonia” and Azerbaijan.
4.1 In light of the preceding, the Management Board of the PRF invites the Committee of Ministers, in accordance with the provisions of Resolution Res(2006)1 on the Statute of the Pension Reserve Fund:
a) To take note of the information presented on this document.
The Management Board approved the draft operating budget 2008 for the PRF (cf. CM(2007)130 vol1, page 134) at its meeting on 17 September 2007.
Note 1 This document has been classified restricted at the date of issue; it will be declassified in accordance with Resolution Res(2001)6 on access to Council of Europe documents..