FC 92/5(c)iii

FINANCE COMMITTEE

1. This document is submitted to the Finance Committee for information, in accordance with Financial Regulation IX on the same basis as document FC 92/5(c) ii, which contains a statement of the investments held for the Compensation Plan Reserve Fund (CPRF).

2. Separation payments, which were approved by the Council at its Sixty-sixth Session (June 1975) as part of the pay package of Rome General Service staff with effect from 1 January 1975, provide for payment upon separation at the rate of one month's pay for each year of service, computed on the basis of the rate of pay of the month of termination of contract. The Council also decided that the Organization's liability should be partially funded. An actuarial review of the Fund was last made at 1 January 1996.

3. The balance in accordance with the terms of the funding arrangements amounted to US$ 100,439,896 on 31 December 1998. Similar to the CPRF, the cash resources set aside in connection with the Scheme are invested in internatinally diversified equities and bonds, in order to produce income and provide capital growth.

4. Paragraphs 3 to 6 of FC 92/5(c)ii - Compensation Plan Reserve Fund, which describe inter alia, the arrangements made for investment of monies held for the CPRF also apply to investment of monies held for the Scheme.

5. The performance of the fund over one, three and five year respectively is shown in Appendix A.

6. Appendix B hereto contains a Summary of Investments held at 31 December 1998, with information provided on both cost and market values for each category of investment.

APPENDIX A

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS - Performance

	1 Year	3 Years	5 Years
FAO - SPS	20.8	15.2	13.3
Benchmark	19.4	12.8	12.1

APPENDIX B

SEPARATION PAYMENTS SCHEME

SUMMARY OF INVESTMENTS TO 31 DECEMBER 1998

	COST		MARKET		INCOME RECEIVED 1998
	31-Dec-98		31-Dec-98
	USD	%	USD	%	USD	%
EQUITIES USD NON-USD	$25,487,567 $27,305,576	25.38% 27.19%	$48,024,111 $34,551,171	36.24% 26.07%	$481,614 $472,163	12.76% 12.51%
SUB-TOTAL	$52,793,143	52.56%	$82,575,282	62.31%	$953,777	25.27%
BONDS USD NON-USD	$18,273,646 $25,278,835	18.19% 25.17%	$18,875,902 $27,069,462	14.24% 20.43%	$1,171,695 $1,452,352	31.05% 38.49%
SUB-TOTAL	$43,552,481	43.36%	$45,945,364	34.67%	$2,624,047	69.53%
TEMPORARY INVESTMENTS	$4,094,271	4.08%	$4,000,517	3.02%	$195,885	5.19%
GRAND TOTAL	$100,439,896	100.00%	$132,521,163	100.00%	$3,773,7091	100.00%

1 Not including US$ 1,218,135 of accrued income