Summary of the Trustee’s Annual Report and Financial Statements
Each year the Trustee produces the Scheme’s Annual Report and Financial Statements, which are audited by KPMG. Here we provide a summary of the main points. If you want more detailed information, you can view or download the full version.
The Scheme’s financial highlights (both DB and DC Sections)
| Net assets at 6 April 2023 | £5,411.6m |
|---|---|
| Income Includes Company and additional member contributions, transfers in, and other income including insurance policy income |
+ £128.1m |
| Benefits payable and other payments Includes pensions, related benefits and administrative expenses |
- £282.6m |
| Net return on investments | - £153.4m |
| Net assets at 5 April 2024 | £5,103.7m |
The overall fall in the value of the Scheme’s investments was due to a fall in certain DB Section assets which are designed to match the value of that Section’s liabilities. The negative investment return is therefore not cause for concern as the DB Section’s liabilities also fell in value, meaning the Scheme’s funding level remains strong and stable.
Membership
The total membership of the Scheme at 5 April 2024 was 40,875, of which 30,797 were members of the DB Section.
The DB Section’s financial highlights
| Net assets at 6 April 2023 | £4,775.3m |
|---|---|
| Income Includes Company and additional member contributions along with £1.2 million in respect of transfer from the DC Section. |
+ £61.3m |
| Benefits payable and other payments Includes pensions, related benefits and administration expenses |
- £250.1m |
| Net return on investments | - £227.4m |
| Net assets at 5 April 2024 | £4,359.1m |
Investments
The DB Section investment strategy sets benchmarks for the allocation of the DB Section assets in order to protect the Scheme’s ability to pay benefits. 96% are to be held in Liability Matching assets, which aim to move in line with changes in the value of the DB Section’s liabilities, with the remaining 4% in Growth assets.
Over the year to 5 April 2024, the Trustee made no significant changes to the Scheme’s portfolio.
Allowing for income, capital gains and movements in market values, the return on the Scheme’s DB Section assets for the 12 months to 31 March 2024 was -1.8%, which was 0.6% above the benchmark return. This means that although the value of the investments fell, the reduction was smaller than the fall in wider market values.
In September 2024, the Trustee published its TCFD Report, which shows the actions the Scheme is taking in relation to climate change and sustainable investment. You can download a copy of the TCFD report from the documents section of this website. The documents library also contains the Statement of Investment Principles which sets out the Trustee’s investment strategy in more detail.
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