(b) Investment advisers (fixed fee).

It is therefore recommended that the costs associated with investment advisers be separated from other operational expenses.

The level of the investment advisers' fees is dependent on the market value of the Fund and the prevailing fee structures.

Investment costs

(d) In view of the size and diversification of the investment portfolio, the Investment Management Service should increase the number of investment managers or review the possibility of hiring additional discretionary investment advisers (AS2001 95 1 14)

Investment costs

(b) Consultants' fees and travel 20,000.

Small capitalization equity investments require frequent visits to companies for purposes of research as less information is provided by investment advisers and brokerage houses on these types of investments.

The resources for consultants of 370,000 constitute a decrease of 44,700 compared to the resources approved for 2004 05.

Non investment costs

Non post resources reflect reductions in provisions for services of consultants, hospitality, furniture and equipment, partially offset by a slight increase for supplies and materials.

(b) Develop, administer and maintain system interface with investment advisers, custodians, bankers and all related financial institutions, and maintain the infrastructure and portfolio management and operational systems of the Investment Management Service

Registered investment companies and investment advisers are required to adopt strong compliance controls, managed by a chief risk officer and administered by a chief compliance officer.

The investment policy reviews and investment guides produced by UNCTAD had been valuable in improving the investment policy environment in those countries.

Investment policy reviews Exchange of national experiences

11.23 The resources of 1,330,400, at the maintenance level, provide for the continuation of four existing posts and related non post resources (other staff costs, consultants and experts and travel of staff).

Under non post objects of expenditure, the resources relate to general temporary assistance, overtime, consultants, travel of staff and other operational costs, such as general operating expenses, supplies and equipment.

The requirements of 64,400 under consultants relate to the completion of the SWIFT cash management system, which will permit automated matching of cash and investment transactions and consolidation of bank accounts, thus simplifying account management and reducing overall costs for banking.

Item 5 Investment policy reviews Exchange of national experiences

In view of the importance that Brazil attached to the activities carried out under the Investment Policy Review Programme, and the interest shown in the Investment Policy Review of Brazil, he requested that its presentation be postponed until the second half of 2005. This would allow further inter ministerial consultations to be held and thus enhance Brazil's contribution to the discussions of the Review.

The fixed income portion of the advisory services plan is to be discontinued, based on the planned outsourcing of the fixed income portfolio.

Bring in your financial advisor Your advisor can also help you come up with a way to pay for those expenses.

The unspent balance under consultants is attributable to the following factors

Taking into account the level of consulting funds available in the budget as a whole, the Committee recommends against the provision of an additional 104,800 for consultant and expert services at this time.

Amounts requested for consultants should also be deferred.

Investment issues analysis

Figure 18 Cost of management of the Fund's portfolio by the Investment Management Service

All the bankers said to their clients, Get out of the dollars and go and invest somewhere else.

The representative of Brazil, referring to item 5, entitled Investment Policy Reviews Exchange of national experiences , said that his Government greatly appreciated UNCTAD's work on the Investment Policy Reviews.

This ramification is highlighted by the consistently high domestic absorption (private and public consumption and investment expenditures to GDP ratio) and the allocation switch from investment to consumption.

(f) Compliance processes are needed for monitoring the adherence of advisers and service providers to the standards of the Investment Management Service

As at 31 December 2004, 272,556 had been spent on salaries of core Professional staff of the Institute (Director, Deputy Director, Training and Human Resource Development Adviser, Information Documentation Adviser and Administrative Finance Officer) leaving an outstanding balance of 107,744 for 2005.

Thus, it is recommended that the following costs, associated with contractual services, be separated from other operational expenses

Seven cost elements had been addressed, including the cost related to investment projects to phase out consumption and production completely (including bilateral programmes), non investment activities, administrative costs, project preparation costs, core unit funding for implementing agencies, operating costs of the Multilateral Fund secretariat and for holding meetings of the Executive Committee, as well as Treasurer's fees.

Together with the fees for other legal opinions which the Service will seek for clarification of the various issues that arise during the course of investments, 250,000 is estimated for the biennium.

Non investment costs had been higher in the past, although they had not included agency support costs, and he noted that most of those non investment costs had already been approved.

UNOTIL advisers in the areas of trade and investment continued to support the Government's capacity building efforts and to provide valuable technical assistance.

Under investment cost, the Secretary Chief Executive Officer explained that the additional resources requested were directly linked to the recommendations made in the report of Deloitte and Touche on the investment process, operations and organization of the Investment Management Service.

Uncertainties about the economy are likely to insert an element of caution into companies investment decisions. In short, it is more likely that moderating investment will exacerbate the consumer slowdown than that an acceleration of investment will offset it.

It is therefore crucial that we do not squander this opportunity to invest in the future.

But in a world where we don't do either, or don't do it very well, we have to at least ask ourselves where should we invest first.

Expert Meeting on Positive Corporate

Commission on Investment, Technology and

Commission on Investment, Technology and Related Financial Flows

15 September 2005