IBM Retirees’ Club - Hursley Branch

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March 2010 Events

Hursley Retirees AGM, Tuesday 9th March 2010

Agenda:

1. Introduction
2. Welcome and Address by Hursley Lab Management
3. Apologies
4. Minutes of the previous AGM
5. Chairman's Report for 2009
6. Treasurer's Report for 2009
7. Speakers
8. Election of officers (including electing a new Treasurer)
9. Plans for 2010
10. Club Website
11. eCommunications/Newsletter
12. Any other business

Presentation at 2010 AGM by David Newman, Pensions Trust Manager

In reviewing the performance of the Pension Fund, David made the following points:

IBM Corporate results for 2009 again showed record profits of in excess of $10 per share against a share price of $120+/- currently.  Turnover was $96B, down 8% on 2008, with the hardware side declining relative to the software and services parts of the business.  Total Corporate profits of $13B after tax represent were 9% up on last year, assisted by cost and expense reductions.

IBM UK figures will be available in the autumn.

Regarding the status of the Pension Fund, especially for C & N Plan members, David said that following a very poor year in 2008, 2009 was one of recovery for the Fund.  The 50% of the portfolio in equities in UK and abroad rose by 15% to 20%, with emerging markets in the Far East and South America showing growth, in some situations, of up to 60% to 80%.  The 45% in Gilts and Bonds generated 6% to 8%.  The remaining 5% in property produced its anticipated rental income stream.  Overall, 2009 brought a 15% - 20% increase in the value of the Fund.

At year end 2008, the Fund was £800M in deficit. This is being and will be addressed and the Fund brought into balance over the coming years.

David also confirmed that C and N Plan Members will get a pension increase, from next month, of 2.3% in relation to their pre 1997 service.

In answer to a question regarding the potential legal case involving IBM and the Trustee, David explained that the Trustee continues to be very active in pursuing matters, but that he was unable to say more at this time.

Members present thanked David for his summary of the current position of the Fund and for attending the meeting.

At this point, David assumed chairmanship of the Meeting and conducted the appointment of Officers and Committee.

The Annual Corporate Report is available on the web.

Notes by M J Hughes, Chairman.