Audi 2013 Annual Report Download - page 258

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO THE BALANCE SHEET
CONSOLIDATED FINANCIAL STATEMENTS
255
B
31.6 / FAIR VALUE OF PLAN ASSETS
EUR million 2013 2012
Plan assets on January 1 844 714
Interest income from plan assets 28 28
Income/expense from plan assets not recognized in interest income –2 8
Employer contributions to the fund 110 97
Employee contributions to the fund 0 0
Pension payments from the fund –8 –5
Changes in scope of consolidated companies and initial adoption of IAS 19 – 1
Effects from transfers 0 1
Currency differences 0 0
Plan assets on December 31 972 844
The long-term overall yield on the plan assets is determined on
a uniform basis and depends on the actual long-term earnings
of the portfolio, historical overall market yields, and a forecast
of the anticipated yields of the classes of security in the port-
folio. Employer contributions to the fund totaling EUR 93
(88) million are expected for the following fiscal year.
31.7 / COMPOSITION OF PLAN ASSETS
EUR million Dec. 31, 2013 Dec. 31, 2012
Market price in
an active market
No market price
in an active
market
Total Market price in
an active market
No market price
in an active
market
Total
Cash and cash equivalents 51 –51 94 – 94
Equity instruments – – – – – –
Debt instruments – – – – – –
Real estate – 0 0 – 0 0
Derivatives – – – 4 – 4
Equity funds 274 –274 240 – 240
Pension funds 523 86 609 382 85 467
Real estate funds 21 –21 21 – 21
Other funds 16 –16 18 – 18
Asset-backed securities 1 – 1 0 – 0
Structured debts – – – – – –
Other – 0 0 – – –
Plan assets 885 86 972 759 85 844
As well as the general market risk, the plan assets of Volkswagen
Pension Trust e.V. are mainly exposed to interest rate and share
price risks, as they are primarily invested in investment funds
comprising fixed-income securities and shares. To cushion the
market risk, the benefit system provides for funds to be allo-
cated to a fluctuation reserve prior to each surplus allocation.
Additionally, the investment strategy and implementation is
monitored on an ongoing basis by the Volkswagen Pension
Trust e.V. bodies, which include representatives from AUDI AG.
Also, asset-liability-management studies are carried out at
regular intervals, ensuring that the investment is compatible
with the obligations in question.
The present value of the obligation is subject to interest rate
risk. Should the value of the plan assets fall below the present
value of the guaranteed obligation, provisions should be created
in the amount of the shortfall.