Barclays 2010 Annual Report Download - page 234

Notes to the financial statements
For the year ended 31st December 2010 continued
28 Retirement benefit obligations continued
The value of the assets of the schemes, their percentage in relation to total scheme assets, and their expected rate of return at 31st December 2010
and 31st December 2009 were as follows:
UK Schemes Overseas Schemes Total
Analysis of scheme assets Value
£m
% of total
fair value of
scheme
assets
Expected
rate of
return
%
Value
£m
% of total
fair value of
scheme
assets
Expected
rate of
return
%
Value
£m
% of total
fair value of
scheme
assets
Expected
rate of
return
%
2010
Equities 5,349 30.4 8.4 516 40.2 7.4 5,865 31.0 8.3
Bonds 9,164 52.0 4.6 477 37.1 6.0 9,641 51.0 4.7
Property 1,277 7.2 6.8 20 1.6 10.3 1,297 6.9 6.9
Derivatives 410 2.3 – – – – 410 2.2 –
Cash 1,057 6.0 0.5 158 12.3 5.8 1,215 6.4 1.2
Other 364 2.1 4.3 113 8.8 9.9 477 2.5 5.6
Fair value of plan assetsa17,621 100 6.3 1,284 100 7.0 18,905 100 6.3
2009
Equities 4,236 27.0 8.6 400 39.0 7.8 4,636 27.7 8.5
Bonds 8,787 56.0 4.9 387 37.7 6.0 9,174 54.9 4.9
Property 1,186 7.5 7.0 20 2.0 12.6 1,206 7.2 7.1
Derivatives (37) – – – – – (37) – –
Cash 1,157 7.3 0.5 139 13.6 3.2 1,296 7.7 0.8
Other 346 2.2 5.0 79 7.7 8.1 425 2.5 5.6
Fair value of plan assetsa15,675 100 6.7 1,025 100 6.6 16,700 100 6.7
The UKRF plan assets include £58m relating to UK private equity investments (2009: £58m) and £1,128m relating to overseas private equity investments
(2009: £921m). These are disclosed within Equities.
Amounts included in the fair value of plan assets include £14m (2009: £4m) relating to shares in Barclays Group, £13m (2009: £5m) relating to bonds
issued by the Barclays Group, and £10m (2009: £10m) relating to property occupied by Group companies. The UKRF also invests in pooled investment
vehicles which may, or may not hold shares/bonds of Barclays Group.
The expected return on assets is determined by calculating a total return estimate based on weighted average estimated returns for each asset class.
Asset class returns are estimated using current and projected economic and market factors such as inflation, credit spreads and equity risk premiums.
The Group actual return on plan assets was an increase of £2,134m (2009: £2,351m increase).
Note
a Excludes £1,004m (2009: £890m) representing the defined contribution assets of the UKRF.
232 Barclays PLC Annual Report 2010www.barclays.com/annualreport10