Autumn 2005
Pensioners News The Unilever UK Pension Fund
Pages 2 - 3 Financial development of the Fund
Pages 4 - 9 UPA news round-up
Pages 10 - 11 Unilever brands Financial development of the Fund
The Unilever UK Pension Fund Fifth Report The Fund’s assets are invested in line with the investment and Statement of Accounts (for the year ended strategy which is set by the Trustees, taking account of the liability to pay benefits into the future. The diagram 31 March 2005) is now available by request. on the right illustrates the current strategy, which will John Wilcock, Financial Controller of the also be reviewed in light of the valuation results. Fund, outlines some of the highlights below. The Fund’s investments are managed by the following external investment managers:
The recovery in the value of the Fund’s assets continued Equities Barclays Global Investors, during the year ended 31 March 2005. Over the last Capital International, two years the value of the Fund’s assets has increased Fidelity and Goldman Sachs by more than 20%. Bonds Deutsche Asset Management, Expenditure £265m Goldman Sachs and Prudential M&G
Property CB Richard Ellis Benefits paid (Pensions and lump sums) £241m Transfers to other funds £8m Private Equity Pantheon Ventures Expenses £16m During the year ended 31 March 2005 the Fund’s investment managers achieved a collective return Income £229m of 11.9%. This return reflects the continued recovery in global equity markets following an extended period of negative returns. Over the last ten years investment Investment Income £104m returns averaging 7.8% a year have been slightly Contributions £122m ahead of the comparable market indices and well Transfers from other funds £3m ahead of inflation, as measured by the Retail Prices Index, which averaged 2.6%.
Expenditure during the year, mainly benefits in the If you would like a copy of the Unilever UK Pension form of pensions and lump sums, exceeded the Fund’s Fund Fifth Report and Statement of Accounts (for the income by £36 million (see diagrams above). Company year ended 31 March 2005), please contact the Fund and member contributions have been payable at the Secretary, Andy Rowell. Write to him at Unilever UK full rate since January 2004. Contribution income also Pensions (see address on the back page), remembering includes Special Company Contributions payable at please to quote your pensioner record number. the rate of £62 million per annum since January 2004. Contribution levels will be reviewed later this year based on the results of the 2005 actuarial valuation.
2 Pensioners News Autumn 2005 Investment Strategy
UK Equities 25% North American Equities 20% European Equities 15% Japan/Pacific/Emerging 7.5% Market Equities UK Bonds 17.5% Property 10% Private Equity 5%
4,9
4,3 4,2 4,2 4,1
3,8 3,7 3,6 3,5
3,1 Value of Investments 1996 - 2005 (as at 31 March)
Property Private Equity
£billions Ordinary Shares Fixed Interest Cash, Deposits and Others 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Autumn 2005 Pensioners News 3 UPA Ashford