Notes to the Financial Statements (continued) for the year ended 30 September 2011


11. Employee information (continued) (d) Retirement benefits (continued) Pension funds (continued) (v) Split of assets and expected returns


2011 £m


Wellcome Trust Pension Plan Equity Bond Other


Total assets


Genome Research Limited Pension Plan Equity


Total assets


92 —


0.4 92.4


49.9 49.9


Expected return (%)


7.3% —


0.5% 7.3%


7.3% 7.3%


2010 £m


93.8 —


0.3 94.1


50.2 50.2


Expected return (%)


7.8% —


0.5% 7.8%


7.8% 7.8%


2009 £m


78.8 —


0.3 79.1


41.7 41.7


Expected return (%)


8.0% —


0.5% 8.0%


8.0% 8.0%


The long-term expected rate of return on cash is determined by reference to bank base rates at the balance sheet dates. The long-term expected rate of return on equities is based on the rate of return on bonds with an allowance for out-performance.


None of the fair values of the assets shown above include any of the Group’s own financial instruments or any property occupied by, or other assets used by, the Group.


(vi) Amounts for the current and previous four periods as at 30 September 2011


Group Fair value of schemes’ assets


Present value of schemes’ liabilities Deficit in schemes


Experience adjustment on schemes’ assets Experience adjustment on schemes’ liabilities


Effects of changes in the demographic and financial assumptions underlying the present value of the schemes’ liabilities


Trust Fair value of schemes’ assets


Present value of schemes’ liabilities Deficit in scheme


Experience adjustment on scheme’s assets Experience adjustment on scheme’s liabilities


Effects of changes in the demographic and financial assumptions underlying the present value of the schemes’ liabilities


£m 142.3


(239.4) (97.1) (24.2)


4.6 38.0


2011 £m


92.4


(149.0) (56.6) (14.4)


4.9 19.9


2010 £m


144.3


(257.1) (112.8) 4.8


11.4 (30.6)


2010 £m


94.1


(160.7) (66.6) 3.5


2.1 (17.5)


2009 £m


120.8


(216.0) (95.2) 5.6


0.9 (29.7)


2009 £m


79.1


(134.1) (55.0) 5.4


0.1 (17.7)


2008 £m


101.0


(169.2) (68.2) (36.1)


2.2 8.0


2008 £m


65.9


(114.6) (48.7) (22.1)


3.4 2.0


2007 £m


118.6


(159.0) (40.4) 3.2


(1.0) 13.7


2007 £m


76.5


(108.8) (32.3) 2.4


(1.0) 8.0


(vii) Estimate of contributions to be paid to scheme The best estimate of contributions to be paid by the employer to the Wellcome Trust scheme for the period beginning after 30 September 2011 is £7.2 million. This includes the additional contributions required to make good the shortfall in funding identified in the valuations of 1 January 2008. The best estimate of contributions to be paid by the employer to the Genome Research Limited scheme for the period beginning after 30 September 2011 is £5.3 million. This includes the additional contributions required to make good the shortfall in funding identified in the valuations of 1 January 2010.


54 | Annual Report 2011


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