Barclays 2007 Annual Report Download - page 213

3
Financial statements
Barclays PLC Annual Report 2007 211
Note
aExcludes £782m (2006: £613m) representing the money purchase assets of the UKRF.
30 Retirement benefit obligations (continued)
Assets (continued)
2006
UK schemes Overseas schemes Total
% of Expected % of Expected % of Expected
total fair rate total fair rate total fair rate
value of of value of of value of of
Value scheme return Value scheme return Value scheme return
£m assets % £m assets % £m assets %
Equities 7,285 43 7.9 337 45 9.4 7,622 44 8.0
Bonds 6.930 41 4.7 300 40 6.2 7,230 41 4.7
Property 1,995 12 6.4 15 2 13.4 2,010 11 6.6
Derivatives 21 – n/a – – – 21 – n/a
Cash 293 2 4.6 37 5 5.9 330 2 4.8
Other 237 2 5.9 56 8 9.4 293 2 6.6
Fair value of plan asset a16,761 100 6.3 745 100 7.9 17,506 100 6.4
The UKRF plan assets include £39m relating to UK private equity investments (2006: £27m) and £664m relating to overseas private equity investments
(2006: £447m). These are disclosed within Equities.
Amounts included in the fair value of plan assets include £6m (2006: £7m) relating to shares in Barclays Group, £6m (2006: £10m) relating to bonds
issued by the Barclays Group, £nil (2006: £1m) relating to other investments in the Barclays Group, and £10m (2006: £8m) relating to property occupied
by Group companies.
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 actual return on plan assets was £731m (2006: £1,447m).
Actuarial gains and losses
The actuarial gains and losses arising on plan liabilities and plan assets are as follows:
UK schemes Overseas schemes Total
2007 2006 2005 2004 2007 2006 2005 2004 2007 2006 2005 2004
£m £m £m £m £m £m £m £m £m £m £m £m
Present value of obligations (16,623) (17,353) (18,252) (15,574) (1,011) (970) (1,017) (587) (17,634) (18,323) (19,269) (16,161)
Fair value of plan assets 17,231 16,761 15,571 13,261 796 745 819 436 18,027 17,506 16,390 13,697
Net surplus/(deficit)
in the plans 608 (592) (2,681) (2,313) (215) (225) (198) (151) 393 (817) (2,879) (2,464)
Experience gains and
losses on plan liabilities
– amount (297) 48 (2) 16 (79) (54) (2) (31) (376) (6) (4) (15)
– as percentage of
plan liabilities (2%) –––(8%) (6%) – (5%) (2%) –––
Difference between
actual and expected
return on net assets
– amount (332) 423 1,599 570 (11) 25 2 9 (343) 448 1,601 579
– as percentage of
plan assets (2%) 3% 10% 4% –3% – 2% (2%) 3% 10% 4%