Events for 2006-2007


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Events for 2006-2007

  1. 1. London Borough of Newham Annual Pension Fund Report 2005-2006
  2. 2. Investment Performance Contents Largest Equity Holdings Introduction Highlights of 2005-06 Individual Fund Manager Performance Events for 2006-2007 Corporate Governance Changes in LGPS Regulations Socially Responsible Investment Members, Managers and Advisors Pension Fund Accounts Fund Membership Investment of Funds Market Values Asset Allocation
  3. 3. Introduction officer taking responsibility at the officer level. Elected members are appointed to the The London Borough of Newham Pension committee and decisions relating to the scheme Scheme is part of the Local Government are delegated to the committee. The elected Pension Scheme (LGPS), which is statutory members are not trustees of the pension fund, pension scheme. It is governed by the LGPS however many of the requirements of trust law regulations, which means that the benefits are are considered relevant to the LGPS. set out and guaranteed by law. The LGPS is a defined benefit ‘final salary’ scheme and the The investment objective of the fund is to annual pension and the retirement lump sum are achieve a rate of return sufficient to meet its both based upon the length of the employee’s liabilities, with the strategy adopted taking this service. into account. The pension fund must be sufficient to sustain the future pension The Council is the administering authority and entitlements of both past and present employees manages the fund for all employees in Newham and is achieved by adjusting the level of and other eligible organisations (Scheduled and employer’s contributions every three years. The Admitted bodies). The fund is financed by funding position is the relationship between contributions from employees, employers and estimated future pension payments and the earnings from investments. Funds not funds held to pay for these pensions and the immediately required to meet pensions and other fund has published a funding strategy statement, benefits are invested in a selection of securities, which outlines the plan for achieving a funding equities and property. level of 100%. The management and administration of the The following annual report provides a summary scheme is delegated to the Pension Fund of the performance of the London Borough of st Investment Committee, with the chief financial Newham’s Pension Fund as at 31 March 2006.
  4. 4. Highlights of 2005-2006 • A review of the contract with our custodian, Northern Trust, resulted in a • Active Membership to the Fund re-negotiation of terms and fees that will increased by 3.9% from 6,631 to 6,889. benefit the Pension Fund. • As part of Best Practice a review of the contracts for Actuarial Services and Investment Advisory Services was undertaken which resulted in the appointment of Mercer Human Resources Ltd for the Actuarial Services and Hewitt Bacon & Woodrow for the Investment Advisory Services. • In line with the Myners report the Fund published its first Business Plan which can be reviewed on the Council’s web- site – • In accordance with the requirements of the Office of the Deputy Prime Minister (ODPM) the Fund published its first Communications Strategy and Governance Statements. These documents together with a full set of the Annual Accounts can also be found on the Council’s web-site – • The Fund welcomed two new admitted bodies – FM Conway and Community Links (Arc in the Park) • The Fund welcomed one new scheduled body - Newham Homes.
  5. 5. Events for 2006-2007 Forthcoming Changes In LGPS Regulations • Introduction of the Pension The newly formed Department for Local Simplification – A Day Government and Communities (DCLG), • Appointment of the Global Equity which replaced the ODPM, is embarking Fund Manager upon a number of consultation exercises • Appointment of the Currency regarding the future of the Local Manager Government Pension Scheme. Details of • Seminar for the Admitted and these can be found on their website Scheduled bodies. ( • Seminar for the members of the scheme • Preparation of the Triennial Valuation • Re-tendering of the Custodian Contract
  6. 6. Members, Managers and Advisors Administering Authority The Role of The Pension Fund Investment Committee The London Borough of Newham The investment committee and its professional Administrator advisers oversee the general framework within London Pension Fund Authority which the fund is managed. The committee also monitors the performance of the fund managers Scheduled & Admitted Bodies and the investments for which they are responsible. Newham College Newvic College The main requirement is managing the fund and FM Conway Ltd Newham Homes reducing risk, by diversifying investments over Stratford School Carpenters TMO different asset classes, geographically and between David Webster Ltd Arc in the Park fund managers, in order to achieve the right Greenwich Leisure Ltd balance the desire for improved returns and the possible risk of those returns dropping due to Fund managers investment conditions. The committee also Capital International considers pension issues as they arise. Aberdeen Asset Management Legal & General Investment Management During 2005/06, the composition of the Investment Rreef Elected Members Committee was as follows: HarbourVest Partners (UK) Ltd Councillor Winston Vaughn (Chairman) Councillor Oliver Inverary (Vice-Chair) Independent Advisor Councillor Jo Corbett Hymans Councillor Lester Hudson Councillor Alec Kellaway Actuary Councillor Sukhdev Singh Marway Hymans Councillor John Saunders Councillor Harvinder Singh Virdee Performance Measurement WM Company Council Officers Bob Heaton (Executive Director of Resources) Custodian John Turnbull (Head of Finance) Northern Trust Company Roy Nolan (Corporate Finance Manager) Maria Uhlmann (Legal) Auditors PricewaterhouseCoopers Trade Union Representatives AVC Providers Tim Linehan, GMB Brain Ward, UNISON Clerical Medical Investment Group Ltd Equitable Life Assurance Society
  7. 7. Fund Membership All of the Council’s employees, except those covered by the Teachers Pension Scheme regulations, can join the Council’s pension scheme and the LGPS regulations also provide for specified bodies (employers) to be admitted. As at 31 March 2006, the value of the pension fund was approximately £552m. Membership of the pension scheme for the year 2005-2006, along with a comparison to previous years, is as 16000 14000 12000 10000 Deferred 8000 6000 Pensioners 4000 Em ployees 2000 0 1999-2000 2000-2001 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 follows: Investment of Funds The investment of pension funds is a As s et Class Total percentage of Fund statutory function and is undertaken by Equities UK 32.50 Overseas 37.50 the fund, in accordance with the Local 70.00 Government Superannuation Index-Linked 3.00 Fixed Interest 10.00 Regulations. The regulations require the Property 12.00 administering authorities to have regard Private Equity 5.00 Total 100.00 to the need for diversification of investment fund monies, the suitability of In adhering to these regulations, the London Borough of Newham Pension Fund employs professional fund management companies to manage the fund’s investments on a day-to-day basis and pursues a policy of managing risk by diversifying both investments and investment managers. Following the 2004 actuarial valuation, a review of the investment management arrangements was carried out. This concluded that some changes should be made so as to move forward from multi asset to specialist manager structure strategic asset allocation. Assets are held by the fund in order to achieve returns consistent with the cost of future pension liabilities as assessed by the actuary at the 2004 valuation. The Fund has chosen a specific benchmark in order to determine the appropriate balance between where the fund’s assets are invested between geographical regions and the type of asset. The Fund invests through a range of pooled Funds as well as directly in shares and has a mix of passive and active management. Stock selection is delegated to Investment Managers who may vary their allocation within set bands and
  8. 8. Market Values Market Values £ from 31 March 2000 Millions The market value of the funds to 31 March 2006 600 investments on 31 March 2006 was 552 550 £552m, compared with a value of 500 £426m on 31 March 2005. 450 426 400 380 377 355 358 The chart on the right shows the 350 292 300 movement in the market value of the 250 fund’s assets over recent years. 200 150 The value of the fund increased by 100 £126m in the year to 31 March 2006. 50 0 2000 2001 2002 2003 2004 2005 2006 Asset Allocation Asset allocation determines the proportion of the fund to be invested in each asset class. The following charts show the allocation of the fund’s assets between the different classes of investments, with a comparison to the position as at 31 March 2005. They demonstrate the move from holding cash to investment within property, in accordance with the revised investment strategy. 2005 2006 5% 8% 1% 8% 9% 4% 13% 3% Fixed Interest Index-Linked UK Equities Overseas Equities 38% 38% Property 36% 37% Cash Largest Equity Holdings Market Market Value Value Equity (£000's) Equity (£000's) 1 Welput 8,830 2 Vodaphone 7,459 3 HBOS 5,497 4 Astrazeneca 5,349 5 Royal Bank of Scotland 5,227 6 Royal Dutch Shell 4,598 7 Rio Tinto 2,153 8 HSBC 2,032 9 Signet 1,851 10 Standard Chartered 1,773
  9. 9. Investment Performance Measurement of the performance of the fund’s investment returns is provided to the pension fund investment committee, on a quarterly basis by each of the fund managers and the WM Company. The WM Company is employed by the Fund to provide analysis of the fund managers’ performance, detailing the returns in each asset class and the reasons for over/under performance in relation to market returns. For each manager, and the fund as a whole, they provide details on quarterly, annual and three-year returns for comparison against each Fund Manager’s customised benchmark. An actuarial review of the fund in 2004, showed that the pension fund had liabilities totalling £620m but assets of only £378m, thus producing a shortfall of £243m, i.e. the fund was only 61% funded. In order to reduce this deficit, the Council carried out a review of the Investment Strategy, which resulted in a change in the fund managers’ mandates. As a result of the changes in the strategy, together with improved stock market returns, the value of the fund increased and latest estimates indicate a funding level of around 67%. The Investment Managers are given individual performance benchmarks related to the indices of the assets in which they invest, which are used to assess their performance and are as follows; Mandate Manager Benchmark Fixed Income Aberdeen Bespoke benchmark plus 1% p.a. over rolling 3 years To outperform the benchmark by 1.5% p.a. gross of fees Multi-Asset over a rolling 3 year period and avoid under performance Active Capital of more than 3% over a rolling 2 year period Multi-Asset Passive Legal & General Track the benchmark Individual Fund Manager Performance 2005/06 Their performance relating to their benchmark for the year is shown on the chart below.
  10. 10. RREEF 22.4 23 Legal & General 26.1 26.2 Benchmark Aberdeen 19.2 19.2 Fund Capital 28.8 29.9 Whole Fund 27.4 26.4 0 5 10 15 20 25 30 35 Percentage Return pa (%)
  11. 11. Corporate Governance fund managers discuss any matters of concern with the company management Corporate Governance is a general term boards and report voting issues to the describing how companies are directed and investment committee. controlled. Boards of Directors are responsible to shareholders for how they run In addition to encouraging best practice their companies and shareholders can play through voting, the London Borough of an active part in corporate governance by Newham remains a committed and active using their voting rights at annual general member of the Local Authority Pension meetings. Fund Forum (LAPFF). The LAPFF promotes the investment interests of Local Authority Ensuring the highest standards of Pension Funds and maximise their interests governance and accountability within the as shareholders to promote corporate social companies we invest in will lead to responsibility and high standards of corporate increased profitability and will benefit the governance amongst the companies in shareholders with enhanced investment which they invest. returns. Following the recommendations of the Socially Responsible Investment Cadbury Committee, the members of the Pension Fund Investment Committee The Pension Fund Investment Committee believe in encouraging good corporate recognises that investment managers must governance in the companies in which the consider social, environmental and ethical fund invests and have adopted voting issues when selecting investments. principles in respect of the funds voting rights, to influence the way in which these In considering these issues, the London companies are managed in the future. The Borough of Newham’s fund managers are voting policy is based upon the guidelines instructed to invest in the best interest of the issued by the Pensions Investment fund, whilst also having regard for non- Research Consultants Ltd (PIRC), who are financial factors in selecting investments. hired to provide advice on corporate governance issues. Pension Fund Accounts Authority to vote is delegated to the individual fund managers, who cast the fund’s votes within the policy guidelines. The
  12. 12. The Pension Fund Accounts summarise the Income received from contributions and transactions of the fund during the year, transfers in were greater than expenditure both for benefits and investments, and show on benefits payable and administration, st the position of the fund on 31 March 2006. which along with an increase in investment The financial statements provide information income resulted in a net increase in the about the financial position, performance pension fund of £126m. and financial adaptability of the fund.
  13. 13. Pension Fund Accounts 2005-06 2004/05 Pension Fund 2005/06 £000s £000s £000s FUND ACCOUNT Contributions Receivable: 8,091 Contributions from Employees (note 1) 8,434 28,601 Contributions from Employers (note 1) 31,515 39,949 4,838 Transfer Values in 5,136 Benefits Payable: (19,993) Pensions Payable (20,629) (2,830) Lump Sum Benefits Payable (2,958) (23,587) Payments to and on account of leavers: (92) Refunds of Contributions (45) (7,667) Transfer Values Out (6,879) Net Additions From Dealing With Members (6,924) (692) Administration and other expenses borne by the scheme (606) 10,256 13,968 Return on Investments: 8,108 Investment Income 9,932 9,932 Changes in Market Value of Investments: 18,524 Realised Gains and Losses on Investments Sold 30,425 13,739 Unrealised/Other Changes in Market Value 74,158 104,583 (1,140) Investment Management Expenses (1,610) (580) Other Expenses (tax borne by Fund) (541) (2,151) 38,651 Net Returns On Investments 112,364 48,907 Net increase /(decrease) in the fund during the year 126,332 376,794 Opening Net Assets of the scheme 425,701 425,701 Closing Net Assets of the scheme 552,033 NET ASSETS STATEMENT Investment Assets Represented by: Investments at Market Value: 35,137 Fixed Interest Securities 43,403 311,870 Equities - Quoted 410,806 1,946 Equities - Unquoted 4,033 15,166 Index Linked Securities 16,690 40,118 Freehold and Leasehold Property 71,747 3,174 Cash and Other Investments 4,357 1,223 1,003 552,039 Current Assets: 331 Debtors and Prepayments 148 17,128 Cash and Bank Balances 246 1,397 Current Liabilities: (392) Creditors (400) 425,701 Fund Balance at 31st March 552,033
  14. 14. NOTES TO THE PENSION FUND Note 1. Fund Operation and Membership The Pension Fund provides pensions and other benefits for former, non-teaching employees of the Council (teachers are covered by a separate pension fund). It is a statutory defined benefit scheme operated under the Local Government Pension Scheme Regulations 1997 (as amended ). Subject to certain criteria, all non-teaching employees may choose to join the scheme. Membership of the Fund at the year end was as follows: At 31st March 2006 At 31st March 2005 Contributing Members 6,889 6,631 Current Pensioners 5,612 5,480 Deferred Pensioners 3,808 3,401 Benefits are financed by contributions from employees, Scheme employers, and by income from investments. The employees basic contribution is 6% of pensionable pay for Officers and Manual Workers. The Employers contribution for 2005/06, paid by the Council, was 22% of pensionable pay. In addition to the Council, there are three scheduled bodies participating in the scheme: Newham Sixth Form College (NewVIc), Newham Community College and Stratford School, and five admitted bodies Greenwich Leisure, Carpenters TMO, FM Conway, Community Links & Newham Homes. Contribution Employee’s Contributions Employer’s Contributions Rate Scheme Employers 2004/05 2005/06 2004/05 2005/06 £000s £000s £000s £000s LB Newham 22.0% 7,666 7,986 27,169 30,073 Stratford School 22.0% 18 20 63 73 NewVIc 12.5% 70 79 245 165 Newham College of Further 22.0% 290 293 1,009 1,071 Education Carpenters TMO 13.0% 12 11 43 29 Greenwich Leisure 13.0% 35 34 72 74 FM Conway 17.6% 0 7 0 20 Newham Homes 22.8% 0 0 0 0 Community Links 13.8% 0 4 0 10 TOTAL 8,091 8,434 28,601 31,515 The Council administers the Fund’s investments. Specialist Fund Managers. – Capital International, Legal & General (L&G), Aberdeen Asset Management (AAM), Rreef Ltd – have been appointed to invest the majority of the Fund. In addition, a small proportion of the Fund is held in property and venture capital. The Fund does not form part of the Council’s consolidated accounts. Note 2. Fund Managers’ Holdings The majority of the Fund is represented by investments. The statement below shows the market value of each type of investment held by the individual Fund Managers in £000s as at 31st March 2006. Investment Capital L&G. AAM Total Rreef Int. Mana g Fixed Interest (UK) 2,114 8,990 25,492 0 0 36,596 Fixed Interest (Overseas) 0 2,121 4,686 0 0 6,807 Index Linked - UK 5,354 11,336 0 0 0 16,690 UK Equities - Quoted 73,692 136,010 0 0 2,257 211.959 Overseas Equities - Quoted 83,938 114,909 0 0 0 198,847 Equities - Unquoted 0 0 0 0 4,033 4,033 Freehold Property 0 0 0 0 820 820 Unit Trusts - Property 0 0 0 70,927 0 70,927 Cash & Liquid Assets (UK) 3,850 31 328 148 0 4,357
  15. 15. Debtors 836 164 0 3 0 1,003 TOTAL HOLDING 169,784 273,561 30,506 71,078 7,110 552,039 As a percentage of total 30.76 49.55 5.53 12.87 1.29 100
  16. 16. The 31st March 2005 investment market values were as follows (in £000s): Investment Capital Legal DeAM* Total Int. & Gen. Mana g Fixed Interest (UK) 1,872 7,373 21,751 0 30,996 Fixed Interest (Overseas) 53 1,703 2,385 0 4,141 Index Linked - UK 5,757 9,409 0 0 15,166 UK Equities - Quoted 55,216 49,036 55,423 1,945 161,620 Overseas Equities - Quoted 63,930 28,788 57,532 0 150,250 Equities - Unquoted 0 0 0 1,946 1,946 Freehold Property 0 0 0 820 820 Unit Trusts - Property 0 0 39,298 0 39,298 Cash & Liquid Assets (UK) 1,908 54 1,212 0 3,174 Debtors 649 143 431 0 1,223 TOTAL HOLDING 129,385 96,506 178,032 4,711 408,634 As a percentage of total 31.66 23.62 43.57 1.15 100 * Aberdeen Asset Management Ltd (AAM) bought DeAM during 2005. Note 3. Actuarial Position The level of contribution payable by the Council to the Fund during 2005/06 was based on the actuarial valuation as at 31st March 2004. This valuation sets the contribution rates for the three years commencing 1st April 2005. The market value of the Fund’s assets at March 2004 was £377 million, compared to liabilities of £620 million, representing 61% of the Fund’s accrued liabilities, allowing for future pay increases. The contribution rates have been calculated using the projected unit actuarial method and the main actuarial assumptions used in 2004 are shown in the following table: Assumption 2001 Valuation 2004 Valuation Rate of Return on Investments 6.75% Equities / 5.75% Bonds 6.7% Equities / 4.9% Bonds Rate of general pay increases 4.3% per annum 4.4% per annum Rate of increase to pensions in Payment (in excess of GMPs) 2.8% per annum 2.9% per annum valuation of Assets Market value based on average Market value based on average values of values of assets in the 12 months assets in the 12 months prior to 31st March prior to 31st March 2001 2004 The 2004 valuation set the required rate of contributions by the Council for 2005-06 at 22% pensionable pay. This rate of contribution is that which, when added to the contributions paid by the members, is sufficient to meet the following: • 100% of the liabilities arising in respect of service after the valuation date; plus • an adjustment over a period of 20 years to reflect the shortfall of the value of each participating employer’s notional share of the Fund’s assets from 100% of its accrued liabilities, allowing, in the case of members in service, for future pay increases. The employers’ contribution rate will increase in stages to 24.2% by 2007/08 following the 2004 valuation. Note 4. Accounting Policies SORP accounts summarise the transactions and net assets of the Fund. They do not take account of liabilities to pay pensions and other benefits in the future. Accounting Standards - The Pension Fund Accounts have been prepared in accordance with the accounting recommendations of the Financial Reports of Pension Schemes – a Statement of Recommended Practice. However disclosures have been limited to those required by the Code of Practice on Local Authority Accounting in the United Kingdom: a Statement of Recommend Practice.
  17. 17. Basis of Preparation - The accounts have been prepared on the accruals principle, with the exception of transfer values which are included on a cash basis. Valuation Principles - Investments are shown in the accounts at their market value that has been determined as follows: • Equities traded through the Stock Exchange Electronic Trading Service (SETS), are valued on the basis of the latest mid market price. Other quoted investments are valued on the basis of the mid-market value quoted on the relevant stock market. • Foreign currency is translated to sterling at the closing mid-market rate on the 31st March 2006 • Unit Trusts and managed funds are valued at the average of the bid and offer prices provided by the relevant fund managers, which reflect the market value of the underlying investments. • Unquoted securities are valued by the fund managers at the end of the year in accordance with generally accepted guidelines - in accordance with the managers’ own valuation of the underlying securities or, where appropriate, at cost. • The value of fixed interest investments in the Scheme’s investment portfolio excludes interest earned but not paid over at the Scheme year end, which is included separately within accrued investment income • Property under the direct ownership of the Pension Fund is shown at its open market value as determined periodically by a professional valuer. The last valuation of the Fund’s property was conducted in March 2002. • Costs of trading are included as appropriate within purchase costs or sales revenues. Investment Income – The following accounting policies are used: • Income from equities is accounted for on the date stocks are quoted ex-dividend. Income from overseas investments is recorded net of any withholding tax where this cannot be recovered. • Income from fixed interest and index-linked securities, cash and short-term deposits is accounted for on an accruals basis • Income from other investments is accounted for on an accruals basis • The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments and unrealised changes in market value. • Foreign currencies – Assets and liabilities in foreign currencies are expressed in sterling at the rates of exchange ruling at the year-end. Income from overseas investments is translated into sterling at an average rate for the period. Surpluses and deficits arising on conversion or translation are dealt with as part of the change in market value of investments. Contributions – Normal contributions, both from the members and from employers, are accounted for in the payroll month to which they relate at rates as specified in the rates and adjustments certificate. Additional contributions from the employer are accounted for in accordance with the agreement under which they are paid, or in the absence of such an agreement, when received. Benefits Payable – Under the rules of the Scheme, members receive a lump sum retirement grant in addition to their annual pension. Lump sum retirement grants are accounted for from the date of retirement. Where a member can choose whether to take a greater retirement grant in return for a reduced pension, these lump sums are accounted for on an accruals basis from the date the option is exercised. Other benefits are accounted for on the date the members leaves the Plan or on death. Transfers to and from other schemes – Transfer values represent the capital sums either receivable in respect of members from other pension schemes or previous employers or payable to the pension schemes of new employers for members who have left the Plan. They take account of transfers where the trustees of the receiving scheme have agreed to accept the liabilities in respect of the transferring members before the year end and where the account of the transfer can be determined with reasonable certainty.
  18. 18. Investment, Management and Administration - A proportion of relevant Council officers’ time, including related on-costs, have been charged to the Fund on the basis of actual time spent on scheme administration and investment related matters. Other Expenses – Administration and investment management expenses are accounted for on an accruals basis. Expenses are recognised net of any recoverable VAT. Statement of Investment Principles - Details of the Council’s Statement of Investment Principles is available for inspection on the Council website ( Note 5. Related Party Transactions There were no related party transactions in 2005/06. Note 6. Additional Information Further analysis, supporting the information in the accounts is detailed below. Administration and Investment Management Costs 2004/05 2005/06 Scheme Administration. £000s £000s Officers’ salaries and related costs. 619 606 Direct running costs 73 36 Administration & other expenses borne by fund 692 642 Fund Management Expenses 1,140 1,574 1,832 2,216 Investment Income Interest 919 1,499 Dividends 6,677 7,827 Rents 57 104 Sub total 7,653 9,430 Bank Interest 455 502 Total 8,108 9,932 Analysis of Purchases and Sales of Investments during 2005/06 Investment At 1st April 05 Purchases Sales At 31st March 06 £000s £000s £000s £000s Fixed Interest - UK 29,943 32,938 (27,370) 35,510 Fixed Interest - Overseas 4,107 750 (3,050) 1,807 Index Linked - UK 13,340 8,671 (3,334) 18,677 UK Equities - Quoted 155,149 106,642 (80,823) 178,890 Overseas Equities - Quoted 150,987 91,499 (82,871) 159,615 Equities - Unquoted 2,102 2,648 (538) 6,290 Property Trust 37,223 23,123 0 60,346 Freehold Property 60 0 0 60 UK Cash 3,174 2,085 (901) 4,358 Total 396,085 268,355 (198,887) 465,553 Analysis of Gains and Losses on Investments during 2005/06 Investment Profits Losses Net Profit £000s £000s £000s Fixed Interest - UK 2,150 (6) 2,144 Fixed Interest - OS 0 (2) (2) Index Linked - UK 218 (205) 13 UK Equities - Quoted 19,349 (5,442) 13,907 Overseas Equities - Quoted 14,802 (1,090) 13,712 Equities - Unquoted 501 (92) 409 Property 12 0 12 Currency 356 (126) 230
  19. 19. Total 37,388 (6,963) 30,425 Schedule of Debtors and Creditors Debtors 2005/06 2004/05 £’000 £000s Contributions from outside bodies 148 118 Dividends outstanding - Rreef 1 0 Dividends outstanding - L&G 164 143 Dividends outstanding - CAP 770 582 Interest 68 67 Dividends outstanding - DeAM 0 431 Sale of holdings 0 213 1,151 1,554 Creditors 2005/06 2004/05 £’000 £’000 Tax payable on outstanding (81) (106) dividends Fees due to Fund Managers (305) (286) Investment Advisor Fees (14) 0 (400) (392)