Barclays 2005 Annual Report Download - page 73

Market risk is also taken in overseas treasuries to support and facilitate
customer activity. The risk is comparatively modest. The market risks
are managed by local treasury functions and local asset and liability
committees. The central market risk team maintains regular contact
with the businesses on treasury issues and oversees a comprehensive
financial risk reporting framework.
Other Market Risks
•Defined benefit pension scheme risk
Barclays maintains a number of defined benefit pension schemes
for past and current employees. The ability of the Pension Fund to
meet the projected pension payments is maintained through
investments. Market risk arises because the estimated market value
of the pension fund assets might decline or their investment returns
might reduce or because the estimated value of the pension
liabilities might increase. In these circumstances, Barclays might be
required or might choose to make extra contributions to the
pension fund. Financial details of the pension fund are in Note 38.
•Asset management structural market risk
Asset management structural market risk is the risk that fee and
commission income is affected by a change in asset prices. It affects
Barclays Global Investors, International Retail and Commercial
Banking, Wealth Management and Barclays Life. The risk is
controlled and managed by the respective businesses and the
central market risk team.
Barclays PLC
Annual Report 2005 71
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