110


John Lewis Partnership plc Annual Report and Accounts 2014


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONTINUED 22 Retirement benefit obligations (continued)


Reconciliation of defined benefit obligation Defined benefit obligation at beginning of year Service cost


Interest on pension liabilities


Remeasurements – from changes in demographic assumptions – from changes in financial assumptions Benefits paid


Defined benefit obligation at end of year


2014 £m


(3,796.0) (159.2) (172.5)


39.4


(234.9) 105.0


(4,218.2) 2013


(restated) £m


(3,175.0) (124.5) (154.8)


30.3


(469.4) 97.4


(3,796.0)


The scheme liabilities are 51% in respect of active scheme participants, 16% in respect of deferred scheme participants and 33% in respect of retirees. The weighted average duration of the scheme liabilities at the end of the period is 20 years.


22.6 Scheme assets Reconciliation of value of assets


Value of assets at the beginning of year Interest income on assets


Return on plan assets (less)/greater than discount rate Benefits paid


Administrative expenses paid Contributions


Value of assets at the end of year 22.7 Analysis of assets


Analysis of assets Listed Equities Private Equities Properties


Government Bonds* Credit**


Infrastructure


Investment Funds Cash and Other***


£m


2014 %


1,249.9 39% 235.3 7% 206.4 6% 219.5 7% 304.7 10% 115.0 4% 397.7 12% 486.3 15%


3,214.8


* Government bond holdings at 25 January 2014 consisted of a portfolio of long dated index linked government bonds. ** Credit holdings consist of short dated listed corporate bond holdings (£216.9m at 25 January 2014) and unlisted credit (£87.8m at 25 January 2014). *** Cash holdings at 25 January 2014 include £294.4m which was invested in long dated index linked government bonds following the year end.


The Trustee’s investment strategy as set out in their statement of Investment Principles dated 11 March 2014 is to hold 15% of assets in a liability matching portfolio mainly consisting of index linked government bonds of an appropriate duration. The remaining 85% is invested in a return seeking portfolio that aims to reduce concentrations of risk by diversifying across a range of asset classes and geographies.


£m


1,595.3 198.6 181.6 70.6


292.4 81.6


292.7 261.1


2,973.9


2013 %


53% 7% 6% 2%


10% 3%


10% 9%


2014 £m


2,973.9 137.2 (49.7)


(105.0) (4.5)


262.9 3,214.8 2013


(restated) £m


2,536.9 125.7 179.1 (97.4) (3.5)


233.1 2,973.9


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