Pensions Fund Annual Report 2011-12 , item 18. PDF 4 MB

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F i n a n c i a l s t a t e m e n t s 2 Accounting policies (continued) Financial instruments The fair value of financial instruments is defined as the amount for which an asset could be exchanged, or a liability settled between knowledgeable, willing parties in an arms length transaction. The financial instruments of the pension fund have to be classified into the following categories under International Financial Reporting Standards (IFRS): Financial assets and liabilities at fair value through profit or loss, these have two categories: Designated, where assets and liabilities are measured at fair value with fair value changes through profit and loss and; Held for trading, where financial assets and liabilities are held for the purpose of selling in the short term for which there is a pattern of short term profit making. Available for sale financial assets: any financial asset designated on initial recognition as available for sale. Loans and receivables: any financial asset with fixed or determinable payments not quoted in the open market such as debtors. Held to maturity investments: any financial asset which is intended to be held to maturity at amortised cost. Other financial liabilities measured at amortised cost using the effective interest rate. DRAFT 36
F i n a n c i a l s t a t e m e n t s 3 Pension fund investments 2011/2012 Funds are invested through several investment managers. The percentage of the market value of investment assets held by each of these managers at the end of the financial year is shown below. 31 March 2011 31 March 2012 External fund manager £ 000 % £ 000 % Standard Life Investments (UK equity) 257,068 10% 262,787 10% State Street Global Advisors (global index tracking) 808,344 31% 808,253 30% Insight Investment (UK Government conventional and index-linked bonds) 263,722 10% 265,077 10% Aberdeen Fund Management (global equity) 188,305 7% 200,302 8% JP Morgan Asset Management (global equity) 191,440 7% 187,207 7% Legal & General Investment Management (UK Government index-linked bonds) 68,394 3% 68,452 3% Longview Partners (global equity) 93,447 4% 100,908 4% Record Currency Management (currency hedging) (6,748) 0% 1,809 0% Sarasin & Partners (global equity) 189,430 7% 182,796 7% Colliers International UK plc (property) 187,489 7% 234,669 9% Russell Investments (emerging markets equity) 66,924 3% 62,461 2% Pictet Asset Management (emerging markets equity) 57,971 2% 50,001 2% Goldman Sachs Asset Management (hedge funds) 28,341 1% 28,350 1% Financial Risk Management (hedge funds) 24,425 1% 24,120 1% Morgan Stanley Investment Management (alternatives) 0 0% 33,250 1% Schroder Investment Management (alternatives)* 0 0% 33,250 1% Various private equity managers (private equity) 79,261 3% 94,181 3% Director of Finance and Resources (centrally held) 99,894 4% 25,519 1% 2,597,707 100% 2,663,392 100% * At 31 March 2012 the fund manager held cash pending purchase of alternatives on 2 April 2012. The fund lends stock in return for payment. The table below summarises the value of the stock lent out by the fund at the end of the year. DRAFT 31 March 2011 31 March 2012 £ 000 £ 000 Equities - UK 22,814 44,583 Equities - Overseas 21,368 43,609 Index linked - UK 10,694 7,519 Fixed interest - UK 9,076 92,044 63,952 187,755 Securities released to a third party under the stock-lending agreement are included in the net assets statement to reflect the fund’s continuing economic interest in those securities. Collateral holdings, supporting the loans, are not identified as individual loans, but are kept in a pooled structure. As security for the stocks on loan, as at 31 March 2012, the fund held £200.180 million (£68.944 million at 31 March 2011) of collateral in the form of government obligations (such as gilts) and equities. Income received from stock-lending activities was £0.179 million for the year ending 31 March 2012 (£0.145 million for year ending 31 March 2011). This is included within the investment income figure shown on the pension fund account. 37
Page 1 and 2: Staffordshire Pension Fund Annual r
Page 3 and 4: Contents 2 3 9 18 27 53 55 Chairman
Page 5 and 6: F u n d m a n a g e m e n t Governa
Page 7 and 8: 7 F u n d m a n a g e m e n t Pensi
Page 9 and 10: F u n d m a n a g e m e n t Adminis
Page 11 and 12: I n v e s t m e n t r e p o r t DRA
Page 13 and 14: I n v e s t m e n t r e p o r t DRA
Page 15 and 16: I n v e s t m e n t r e p o r t Inv
Page 17 and 18: I n v e s t m e n t r e p o r t Inv
Page 19 and 20: I n v e s t m e n t r e p o r t Cur
Page 21 and 22: F u n d m e m b e r s h i p Benefit
Page 23 and 24: F u n d m e m b e r s h i p aT New
Page 25 and 26: F u n d m e m b e r s h i p Benchma
Page 27 and 28: F u n d m e m b e r s h i p Custome
Page 29 and 30: Financial statements Staffordshire
Page 31 and 32: F i n a n c i a l s t a t e m e n t
Page 35 and 36: notesDRAFT DRAFT Assumptions The as
Page 37: Financial statements F i n a n c i
Page 55 and 56: G l o s s a r y Glossary of terms A
Page 57 and 58: C o n t a c t s If you have any que

Pensions Fund Annual Report 2011-12 , item 18. PDF 4 MB

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