22 Retirement benefit obligations (continued) (g) Change in plan assets 31 Mar 2022 £’000 31 Mar 2021 £’000 Fair value of plan assets at 1 April 143,071 124,379 Interest income 2,974 3,034 Actual return on assets less interest 3,247 14,067 Actual return on plan assets 6,221 17,101 Contributions – employer 2,961 5,917 Benefits paid (2,803) (4,186) Exchange difference (37) (140) Fair value of plan assets at 31 March 149,413 143,071 (h) Plan assets The major categories of plan assets areas follows: 31 Mar 2022 31 Mar 2021 £’000 % £’000 % UK equities 1,773 1.2 1,937 North American equities 24,999 16.7 27,430 European equities 5,661 3.8 6,175 Japanese equities 3,042 2.0 3,341 Asia Pacific equities 2,260 1.5 2,474 Emerging markets equities 4,715 3.2 5,199 3.6 Equities 42,450 28.4 46,556 32.5 LDIs 41,339 27.7 26,574 Diversified Growth Funds 12,458 8.3 11,976 8.4 Bonds 2,916 2.0 10,100 Multi Asset Credit Funds 35,226 23.6 34,701 24.2 Property 13,753 9.2 257 Cash and liquidity funds 1,271 0.8 12,907 9.0 149,413 100.0 143,071 Assets are invested in a range of funds operated by Legal & General, Barings (until June 2021), Columbia Threadneedle (from July 2021), Royal London Asset Management, CBRE (from April 2021) and CVC Credit Partners for the UK Scheme and Irish Life for the Irish Scheme. The Trustees believe that investing in a range of funds and investment managers offers the best combination of growth opportunity and risk management. Investments are diversified such that the failure of any single investment would not have a material impact on the overall level of assets. The Trustees have implemented anew investment strategy to further diversify and de-risk the scheme. This included investing in LDIs (Liability Driven Investments) which is a strategy based on the cash flows to fund future liabilities and Multi Asset Credit Funds which can enable trustees to take advantage of credit market opportunities when they arise using a complete array of credit types in a low governance and cost effective manner.
Association of Chartered Certified Accountants Notes to the Financial Statements for the year ended 31 March 2022
