Mercedes 2013 Annual Report Download - page 227

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F | Consolidated Financial Statements | Notes to the Consolidated Financial Statements
The fair value of plan assets is predominantly determined by
the situation on the capital markets. Unfavorable developments,
especially of equity prices and fixed-interest securities, could
reduce that fair value. The broad spread of investments and of
the selections of asset managers using quantitative and quali-
tative analyses as well as the continual monitoring of performance
and risk help to reduce the investment risk. The Group regu-
larly makes additional contributions to the plan assets in order
to cover the future obligations from defined benefit pension
plans.
Reconciliation of the net obligation from defined benefit
pension plans. The development of the relevant factors
is shown in table  F.56.
Composition of plan assets. Plan assets and income
from plan assets are used solely to pay pension benefits and
to administer the plans. The Group’s plan asset allocations
are presented in table  F.57.
Market prices are available for equities and bonds due to their
listing in active markets. As of the balance sheet date, the assets
of the German pension plans do not include any significant
investments in government bonds that are currently affected
by the European sovereign-debt crisis; all government bonds
denominated in euros have a rating of at least AA as of the
balance sheet date.
The investment strategy is determined by the Investment Com-
mittees, which are composed of representatives of the Finance
and Human Resources departments, and each investment
strategy is generally determined annually by the respective
committee.
F.57
Composition of plan assets
2013 2012
Total
German
plans
Non-German
plans Total
German
plans
Non-German
plans
In millions of euros
Energy, commodities and utilities 839 737 102 917 807 110
Financials 995 861 134 932 788 144
Healthcare 387 322 65 365 302 63
Industrials 479 408 71 407 348 59
Consumer goods 865 732 133 805 684 121
Information technology and telecommunication 636 538 98 588 501 87
Others 88 – 88 152 – 152
Equities 4,289 3,598 691 4,166 3,430 736
Government bonds in EUR 4,084 4,078 6 3,348 3,348 –
Government bonds in USD 936 628 308 998 643 355
Government bonds in other currencies 329 – 329 377 - 377
Government bonds 5,349 4,706 643 4,723 3,991 732
Corporate bonds 1,948 1,501 447 1,584 1,278 306
Securitized bonds 1,066 1,009 57 981 888 93
Bonds 8,363 7,216 1,147 7,288 6,157 1,131
Other exchange-traded instruments 5 1 4 45 42 3
Total exchange-traded instruments 12,657 10,815 1,842 11,499 9,629 1,870
Alternative investments1690 592 98 1,021 931 90
Real estate 496 408 88 460 398 62
Other non-exchange-traded instruments 85 78 7 119 119 –
Cash and cash equivalents 740 695 45 1,108 1,066 42
Total non-exchange-traded instruments 2,011 1,773 238 2,708 2,514 194
Plan assets as of December 31 14,668 12,588 2,080 14,207 12,143 2,064
thereof fair value of own transferable
financial instruments
3 3 –
1 1 –
thereof fair value of self-used plan assets 96 96 – 102 102 –
1 Alternative investments mainly include private equity.