Investment report - DB

02 September 2021

Investment returns

This section gives you a brief overview of each sub-section of the Defined Benefit Section of the Plan’s investments at 31 March 2021, including the distribution of investments across various asset classes.

DB Segregated Section (excluding V&C sub section)

12 month returns to 31 March 2021

1 year return (%)

1 year benchmark (%)

3 year return (%)

3 year benchmark (%)

Global Equities

44.7

45.0

12.7

12.7

Bonds

-2.2

-3.7

4.4

3.9

Total

17.5

17.3

8.3

8.1

The table shows that all asset classes outperformed the benchmark over both 1 and 3 year returns following the general recovery of markets in light of COVID-19.

Asset allocation

The Plan’s allocation is well-diversified among passive UK equities, global equities and corporate bonds. The actual allocation is reviewed monthly, in order to ensure the assets are allocated within the ranges stated above. To lessen currency risk from the increasing investment in global equities, some of that investment is hedged against currency exposure back to sterling.

As at 31 March 2021, the Plan’s strategic asset allocation was as follows:

DB Segregated Section

Asset class

Strategic allocation (%)

Ranges by asset class (%)

Equities

35

32.5 –37.5

Bonds

65

62.5 – 67.5

Total

100

EBCO Segregated Section

Asset class

Strategic allocation (%)

Ranges by asset class (%)

Equities

5

0-10

Bonds

95

90-100

Total

100

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