UK - The £2.8bn Boots pension fund has decided to switch 15% of its assets from bonds, abandoning its earlier decision of holding all its assets in bonds.
The company today said that around £425m would be invested in other asset classes.
“The pension fund remains strong, but to better match long term liabilities, the pension fund trustees have decided to switch a small proportion, around 15%, of the fund's assets into asset classes other than bonds,” Boots said in a statement.
The company said that as per the FRS17 accounting standard, the pension scheme deficit before tax was £58m, compared to £154m in 2003.
Market value of liabilities was £2,894m (£2,540m) and market value of assets was £2,836m (£2,694m) as at March 31, 2004.
The P&L cost of the pension fund is expected to increase by £40m in 2004-05 principally due to the roll-off of the amortisation of previous surpluses, and the movement in real bond yields in the three years since the last actuarial valuation.
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