VOL. 70, NO. 1 Janvier-- January 2011 - AAFI-AFICS, Geneva - UNOG

Real Return excess of 3.5% Long-term Investment Objective through 31December 2009 (geometric)201013.10-10-9.4-4.6-1.3 -10.22.6 1.2-0.5 -1.71.81.43-201 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 15 Year 20 Year 25 YearUNJSPF Real Return Excess of 3.5%In summary, the Fund’s long term projections are practically unaffected by the current volatilemarket conditions. However, as noted by the Committee of Actuaries, the Fund needs to ensurethat, in the long term, investment performance meets the 3.5% real return objective and that thisobjective is achieved with no undue risk to avoid fluctuations in the results of future actuarialvaluations. The Committee’s comment should be understood in the context of a maturing pensionfund where the results of future actuarial valuations will be more strongly linked to futureinvestment returns.I would like to add that the Fund will soon undertake a new Asset-Liability Management studywhich is an important component of its on-going performance monitoring process and riskmanagement policy. Using the results of the ALM helps to ensure long term solvency and assiststhe Fund’s Investment Management Division and the UN Secretary General, who has fiduciaryresponsibility over the investments of the Fund, in decisions concerning optimal long term assetallocation and currency strategies for the investment of the assets of the Pension Fund. Theresults and recommendations are expected in Spring 2011.33