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									                                    ROYAL COUNTY OF BERKSHIRE PENSION FUND
       The Royal Borough of Windsor and Maidenhead administers the Royal County of Berkshire Pension Fund
       on behalf of 83 scheduled and admitted bodies including the unitary local authorities in Berkshire. The
       results for the year are set out below:
       1. Fund Account for the Year Ended 31st March 2006
         2004-05                                                                            Notes     2005-06
          £'000                                                                                        £'000
                      Contributions and Benefits
                        Contributions Receivable:
            28,236         Employers                                                        note 2       35,742
            17,300         Employees                                                        note 2       18,548
             1,288         Full Cost Contributions Early Retirement                                       1,591
            19,465         Transfer Values Received                                         note 3       19,996
                      Less:
                        Benefits Payable:
            35,681         Pensions Payable                                                 note 2       37,852
             5,650         Lump Sum Benefits                                                              7,230
                        Payments to and on account of leavers:
            11,712         Transfer Values Paid                                             note 4       13,891
               581         Refunds of Contributions                                                         384
               956      Administrative & Other Expenses                                     note 5          978
            11,709    Net Additions from Dealing with Members                                            15,542
                    Returns on Investments
            33,097      Investment Income                                                   note 6       36,570
            74,488      Change in Market Value of Investments                                           238,878
            (2,700)     Less Investment Management Expenses                                 note 5       (3,375)
           108,885 Net Return on Investments                                                            272,073
           120,594      Net Increase/(Decrease) in Fund during Year                                     287,615
           968,399      Net Assets of Scheme at 1 April 2005                                          1,088,993
         1,088,993 Net Assets of Scheme at 31st March 2006                                            1,376,608

       2. Net Asset Statement for the Year Ended 31st March 2006
         2004-05                                                       Notes    2005-06    2005-06    2005-06
          Total                                                                   UK       Foreign     Total
          £'000                                                                  £'000      £'000      £'000
                      Quoted Investments at Market Value
                        Fixed Interest:
            35,663         Public Sector                                         22,112      9,974       32,086
            64,635         Other                                                 34,688     47,497       82,185
            66,396      Index Linked Securities                                  74,983          0       74,983
           696,969      Equities                                       note 7   572,619    330,168      902,787
                      Managed Funds
                        Unit Trusts:
            56,258         Property                                              74,080                  74,080
            54,770         Other                                                 26,593     55,648       82,241
                        Property:
            54,605         Freehold                                              55,686                  55,686
               970         Leasehold                                              1,075                   1,075
         1,030,266      Total Investments                              note 7   861,836    443,287    1,305,123
                      Current Assets
            12,750      Short Term Loan to RBWM                        note 8                             9,208
             8,205      Sundry Debtors                                                                    9,687
            18,865      Cash Held by Fund Managers                     note 7                            17,538
            12,635      Cash Held by Cash Manager                                                        13,357
             7,173      Cash at Bank                                                                     23,053
            59,448      Total Current Assets                                                             72,843
                      Current Liabilities
              (721)     Sundry Creditors                                                                 (1,358)
            58,727      Net Current Assets                                                               71,485
         1,088,993    Total Net Assets                                 note 9                         1,376,608




Royal Borough of Windsor and Maidenhead                           32                      dcf9c760-a34b-4a3e-ab2a-f038799b8bd0.xls
                               NOTES TO THE ROYAL COUNTY OF BERKSHIRE PENSION FUND
        Income and expenditure are the accounts debited with thevalue, whichof Recommended Practice 1
           Investments are been in credited and at their to the Statement has been determined as follows:
        The accounts have shownprepared in accordance marketrevenue account when earned or incurred on
        The Royal Borough of Windsor and Maidenhead operates a scheme within the Local
        Government Pension Scheme (LGPS) Regulations which covers local government employees
        throughout the geographical area of Berkshire (other than teachers and fire personnel who have
        their own schemes). As at 31st March 2006 there were 16,859 contributing members of the Fund
        and 9,363 pensioners or dependants receiving continuing benefits from the Fund. There are also
        10,355 former contributing members whose deferred pensions will be paid on their eventual
        retirement.

        Employer bodies who are members of the Fund can be classified as either Scheduled ( these
        being obliged by legislation to participate in the Fund) or Admitted ( these participate at the
        discretion of the Administering Authority). Those bodies who are classified as scheduled and the
        rules applicable to bodies who can be admitted into the scheme are covered by the LGPS
        Regulations.


        The benefits due and contributions to be paid by employees who are members of the scheme
        are fixed according to the relevant LGPS Regulations. Employer contributions for each of the
        scheduled or admitted bodies within the scheme are set and reviewed at three-yearly intervals by
        the Actuary to the Fund. The employer rates in place for the year ended 31st March 2006 were
        based on the valuation of the scheme as at 31st March 2004 and became payable with effect
        from 1 April 2005. The individual contribution rate of each employer is calculated according to the
        long-term contribution rate required, assuming 100% funding of future pension liabilities and after
        allowing for the surplus on the Fund and the individual liability profile of each employer.


        At the valuation of 31st March 2004 the Actuary valued the Fund's assets at £972 million and
        assessed that the Fund had an actuarial deficit of £146 million. Arrangements for the recovery of
        the deficit are covered in the Funding Strategy Statement of the Fund.



        The Funding Strategy Statement and more detailed information about the management of the
        Fund can be obtained from the Pension Fund Annual Report, which is published separately.


        1. Accounting Policies
        Accounting Standards
        The accounts have been prepared in accordance with the provisions of Chapter 2 Recommended
        Accounting Practice of the Pension SORP and the Code of Practice on Local Authority
        Accounting issued by the Chartered Institute of Public Finance and Accountancy (CIPFA). The
        accounts summarise the transactions and net assets of the Fund. They do not take account of
        future liabilities to pay pensions and other benefits.
        Basis of Preparation
        Income and expenditure are credited and debited to the revenue account when earned or
        incurred (that is, on an accruals basis), not when received or paid. Transfer values arise when a
        contributor transfers to or from the Fund. They have been included in the accounts on the basis
        of actual amounts received and paid due to the lack of sufficient information to account for them
        on an accruals basis.




        Investments
        Investments are shown in the accounts at their market value, which has been determined as
        follows:

        FTSE-100 and Reserve List stocks are valued using the SETS volume weighted average price
        over the last ten minutes of trading on 31st March 2006
        Other listed securities and securities on other domestic markets at mid-market price at the close
        of business on 31st March 2006 as supplied by Extel.
        Unlisted securities using latest dealings, professional valuations, asset values and other
        appropriate financial information.
        Investments held in overseas securities at mid-market price at the close of dealing on 31 March
        2006 translated into sterling at the rate that day.
        The UK property portfolio value reflects an external property valuation, as at the 31 March 2006,
        carried out by Atis Real for all the properties in the Fund.




Royal Borough of Windsor and Maidenhead                               33                             dcf9c760-a34b-4a3e-ab2a-f038799b8bd0.xls
        appropriate financial information.
        Investments held in overseas securities at mid-market price at the close of dealing on 31 March
        2006 translated into sterling at the rate that day.
        The UK property portfolio value reflects an external property valuation, as at the 31 March 2006,
                                  for all the properties in the COUNTY OF BERKSHIRE PENSION FUND
        carried out by Atis RealNOTES TO THE ROYAL Fund.




        2. Contributions Received and Pensions Paid

                                                                     Employers       Employees         Pensions
          Analysis by type of Employer                               Contribution    Contribution      Payable
                                                                       £'000           £'000            £'000
             Berkshire County Council                                        -               -            13,000
             Administering Authority                                       4,425           2,721           3,174
             Scheduled Bodies                                             26,141          13,726          19,041
             Admitted Bodies                                               5,176           2,101           2,637

             Total                                                         35,742          18,548          37,852

        3. Transfer Values Received
        The figure for transfer values received includes £4.647 million by way of a bulk transfer from
        Oxfordshire County Council Pension Fund for staff employed in the Thames Valley Probation
        service.

        4. Transfer Values Paid
        There were no bulk transfers of staff benefits from the Fund during the year.


        5. Administrative and Other Expenses
        The full costs of both the investment and the administration of pensions are charged to the Fund.
        The breakdown between the investment management and benefits functions was:

                                                        £m
          Investment Management                        3.375 *
          Benefits Payroll and Administration          0.978
                                                       4.353
                                                      (* includes £2.679m fees paid to external managers)




        6. Investment Income
        Investment income includes dividends and interest earned and is analysed by asset class as
        follows:

                                                                                        2005/06         2004/05
                 Asset Class                                                             £000's          £000's
             Fixed Interest                                                                 7,033           6,488
             Equities - UK                                                                 16,281          14,334
             Equities - Overseas                                                            5,335           5,101
             Property Trusts                                                                2,049           1,904
             Property                                                                       3,340           3,460
             Cash                                                                           2,532           1,810
             Total                                                                         36,570          33,097

        The changes in income mainly reflect the reallocation of the assets of the Fund, movements in
        currency and changes in interest rates.



        There were noof
         The full costs bulk transfers of staff and the administration of pensions are Figures to 1998/99 included
        7. Investmentsboth the investment benefits from the Fund during the year. chargedfor the Fund.
        The cost value of investments was £957,517,000 and the transactions for the year comprised:-


             Purchases                £875,377,000
             Sales                    £827,218,000

        The figure for equities includes £ 2,259,565 investment in unquoted private equity
        Cash with Managers includes Futures Contracts valued at £7,761,000



Royal Borough of Windsor and Maidenhead                                    34                              dcf9c760-a34b-4a3e-ab2a-f038799b8bd0.xls
                              NOTES TO THE ROYAL COUNTY OF BERKSHIRE PENSION FUND
        8. Short Term Loan
        Cash on loan to the Royal Borough of Windsor and Maidenhead earns interest at the seven-day
        rate.

        9. Net Assets
        The Fund's assets are managed partly in-house and partly by external managers. At 31 March
        2006 the split of assets was as follows:

                                                                                 £M             %
          External Managers
            Fleming Investment Management                                           163.5            11.9
            Barclays Global Investors                                               183.2            13.3
            Schroder Asset Management                                                50.5             3.7
            Wellington Management International                                     175.0            12.7
            Capital Management                                                      104.6             7.6
            Fidelity Pensions Management                                            123.5             9.0
          Managed In-House
            UK Equity Index Fund                                                   185.6             13.5
            UK Smaller Companies                                                    43.9              3.2
            UK Index Linked Gilts                                                   65.8              4.8
            Property                                                               130.8              9.5
            Other (including Cash)                                                 150.6             10.8
            Total                                                                 1377.0            100.0




        10. Change in Market Value of Investments
        The increase in the market value of investments mainly reflects the increase in the value of
        This represents during the year.
        equity markets the net change in the market value of investments after deducting the net profits

        11. Officers' Emoluments
        The Fund has no directly appointed employees. The management and administration of the Fund
        is carried out by employees of the Royal Borough of Windsor and Maidenhead and statements of
        emoluments are covered in those accounts.

        12. Related Party Transactions
        Officers have no relevant connections with related parties to declare. Members of the Pension
        Fund Panel are concerned with the overview of the Pension Fund rather than particular
        transactions.

        13. Statement of Investment Principles
        A more detailed Annual report for the Berkshire Pension Fund is produced as a separate
        document to these accounts. This report contains the Statement of Investment Principles for the
        Fund and a list of the participating employer bodies.

        14. Stock Lending
        The value of stock at loan via HSBC Global Investor Services (Fund Custodian) was £12,503,000
        as at 31st March 2006

        15. Post Balance Sheet Statement
        The asset values quoted in the balance sheet refer to market values at the date of the closure
        of the accounts, 31st March 2006. Any subsequent market movements are not reflected.
        The Actuary as part of assessing the employer contribution rates to be paid, uses a long-term
        smoothed approach to account for movements in asset values.




Royal Borough of Windsor and Maidenhead                            35                           dcf9c760-a34b-4a3e-ab2a-f038799b8bd0.xls
                             NOTES TO THE ROYAL COUNTY OF BERKSHIRE PENSION FUND




Royal Borough of Windsor and Maidenhead              36                  dcf9c760-a34b-4a3e-ab2a-f038799b8bd0.xls
              2005-2006 2004-2005 2003-2004 2002-2003 1998/99 1999/00 1998/99
Financial Years
Year End                 2006       2005       2004
              31st March 31st March 31st March 31st March  2000    1999    1998
                         31ST MARCH 2005 31ST March
              31ST MARCH 2006 31ST MARCH 2004
              2005-06 2004-05 2003-04 2002-03

								
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