The fourth 'first' for Manchester was undoubtedly the extension of the investment powers, which were limited to trustee securities, so as to enable the Fund to invest in ordinary shares. The City Treasurer, Sir Harry Page, and myself as the actuary, were very anxious for this change to be introduced and, after discussions with the Treasury and the Ministry, powers were finally granted in the Manchester Corporation Act 1956.

The proportion of the investments, which could be so invested, was limited to 25% of the total value of the assets of the fund. It was also a requirement that an Investment Advisory Panel be set up, which in the first instance consisted of Mr R F Pennington, the Investment Manager of the Refuge Assurance Co, Mr Scott Williamson, the Head of the Trustee Investment Department of the District Bank, and myself as the actuary.

At the first meeting of the Investment Panel some £6 million of undated 31/2% War Loan was switched into equities and as the equity market was then in a bull phase, considerable capital profit was made in a short period. Other local authorities took similar powers in subsequent years and legislation was finally applied to all authorities by the Trustee Investments Act 1961.

The investments were for some years managed in house by the City Treasurer and his staff, acting on the advice of the Investment Advisory Panel who actually selected the individual equities. As the Fund grew and the equity proportion became greater, it was realised that day to day management was essential, rather than periodically to review and select investments every two or three months. Investment managers were then appointed and this system of having most of the Fund's assets managed externally continues today, whilst the Management Committee focuses on strategy and investment performance.

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