Barclays 2013 Annual Report Download - page 357

Note 37: Pensions and post retirement benefits continued
The value of the assets of the schemes and their percentage in relation to total scheme assets were as follows:
Analysis of scheme assets
Total Of which relates to UKRF
Value
£m
% of total
fair value of
scheme
assets
%
Value
£m
% of total
fair value of
scheme
assets
%
As at 31 December 2013
Equities – Quoted 3,420 13.3 2,355 10.0
Equities – Non Quoted 1,299 5.0 1,270 5.4
Bonds – Fixed Governmenta1,342 5.2 888 3.8
Bonds – Index–Linked Governmenta6,356 24.8 6,365 26.8
Bonds – Corporate and othera3,715 14.5 3,533 14.9
Property – Commercialb1,376 5.3 1,320 5.6
Derivativesb1,425 5.5 1,425 6.0
Cashb4,202 16.3 3,903 16.5
Pooled fundsc2,342 9.1 2,342 9.9
Otherb266 1.0 260 1.1
Fair value of scheme assets 25,743 100.0 23,661 100.0
As at 31 December 2012
Equities – Quoted 2,999 12.0 1,917 8.4
Equities – Non Quoted 1,226 4.9 1,204 5.3
Bonds – Fixed Governmenta1,266 5.0 815 3.6
Bonds – Index–Linked Governmenta6,405 25.6 6,405 28.0
Bonds – Corporate and othera3,452 13.8 3,280 14.3
Property – Commercialb1,289 5.1 1,228 5.4
Derivativesb1,637 6.5 1,637 7.2
Cashb4,196 16.7 3,843 16.8
Pooled fundsc2,288 9.1 2,281 10.0
Otherb317 1.3 235 1.0
Fair value of scheme assets 25,075 100.0 22,845 100.0
Included within the fair value of scheme assets were: £5m (2012: £7m) relating to shares in Barclays PLC, £31m (2012: £3m) relating to bonds
issued by the Barclays Group, and £7m (2012: £1m) relating to property occupied by Group companies. The UKRF also invests in investment
vehicles which may hold shares or debt issued by the Barclays Group.
Approximately a third of the UKRF assets are invested in liability driven investment strategies; primarily UK gilts as well as interest rate and inflation swaps.
These are used to better match the assets to its liabilities. The swaps are used to reduce the scheme’s inflation and duration risks against its liabilities.
Funding
The triennial funding valuation of the UKRF is currently underway with an effective date of 30 September 2013. Contribution requirements,
including any deficit recovery plans, will be agreed between the Bank and Trustee by the end of 2014. The previous triennial funding valuation at
30 September 2010 showed a deficit of £5.0bn. Under the agreed recovery plan, deficit contributions of £1.8bn were paid to the fund in December
2011 and a further £0.5bn paid in April 2012. Further deficit contributions are payable from 2017 to 2021 starting at £0.7bn in 2017 and increasing
by approximately 3.5% per annum until 2021. These deficit contributions are in addition to the regular contributions to meet the Group’s share of
the cost of benefits accruing over each year.
In non-valuation years the Scheme Actuary prepares an annual update of the funding position. The latest annual update was carried out as at
30 September 2012 and showed a deficit of £3.6bn. The contributions paid to the UKRF are agreed between Barclays and the Trustee every three years.
Contributions paid with respect to the UKRF were as follows:
Contributions paid
£m
2013 238
2012 742
2011 2,128
The Group’s expected contribution to the UKRF in 2014 is £218m. In addition the expected contributions to UK defined contribution schemes is
£46m to the UKRF and £103m to the BPSP. For non-UK schemes the expected contributions in 2014 are £107m.
Notes
a Assets held are predominately quoted.
b Assets held are predominantly non quoted.
c Pooled funds relate to a variety of investments which are predominantly non-quoted.
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