| Report ofthe Salvation | Report ofthe Salvation | Army Pension | Fund Board | 2 to 7 |
|---|---|---|---|---|
| Accounts | 8to 14 | |||
| Auditors' | Report | 15to 17 | ||
| Actuary's | Statement | 18 |
| 1. | Actuaries | and Investment | Messrs. BWCI Consulting | Messrs. BWCI Consulting | Limited | Limited | |||
|---|---|---|---|---|---|---|---|---|---|
| Consultant: | Albert House | ||||||||
| St Peter Port | |||||||||
| Guernsey GY1 1AW |
|||||||||
| 2. | Auditors: | Knox Cropper LLP |
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| 65-68 Leadenhall Street |
|||||||||
| London EC3A 2AD |
|||||||||
| 3. | Solicitors: | Messrs. Slaughter ik May |
|||||||
| One Bunhill Row |
|||||||||
| London EC1Y8YY |
|||||||||
| 4. | Bankers: | Reliance Bank Limited | |||||||
| Faith House, | |||||||||
| 23-24 Lovat Lane, | |||||||||
| London EC3R BEB |
|||||||||
| 5. | Investment | Advisor: | Investment Advisory |
Committee | ofThe Salvation | Army | |||
| 6. | Investment | Managers: | Sarasin 8 Partners LLP |
||||||
| 100St. Paul's Churchyard, | |||||||||
| London EC4M 8BU |
|||||||||
| Legal &General Investment | Management | (LGIM) | |||||||
| 1Coleman Street | |||||||||
| London EC2R SAA |
| verall as | set allocation | , | , | ||||
|---|---|---|---|---|---|---|---|
| Asset | Catai/ory | Long term target asset allocation |
Permitted range |
Performance | Benchmark | ||
| UK Equities | 45.0% | +/- | 5% | FTSE Custom All-Share Specialist | |||
| Ethical Index | |||||||
| Overseas | Equities | 22.5% | +/- | 5% | FTSE Custom All World ex UK |
||
| Specialist Ethical (Net WHT) Index | |||||||
| Long dated UK |
ICE BofAML 15+Year Sterling | ||||||
| corporate | bonds | 25.0% | +/ | So/o | Non-gilt Index | ||
| Property | 7.5% | +/- | 2.5% | MSCI/AREF UK Quarterly Ail |
|||
| Balanced Property |
Fund Index | ||||||
| Cash | 0.0% | + | 5% | ||||
| TOTAL | 100% | ||||||
| ctive manager asset | allocation, | ||||||
| Asset | Category | Asset | allocation | Permitted range |
Performance | Benchmark | |
| UK Equities | 27.0'Yo | +/- | 10'Yo | MSCI UK Investable | Market Index | ||
| Overseas | Equities | 13.0% | +/- | 10% | MSCI AC World ex | uk Index | |
| Long dated UK |
ICE BOfAML 15+Year Sterling | ||||||
| corporate | bonds | 60,0% | +/- | 5% | Non-gilt Index | ||
| Cash | 0,0'/o | + | 5% | ||||
| TOTAL | 100% |
| assive manager asset a | assive manager asset a | llocation, | |||
|---|---|---|---|---|---|
| Asset fund category |
Asset allocation | Permitted range |
Performance Benchmark |
||
| Index-Linked | Giits over | 37.0% | +/- 2% | FTSE A UK Index-Linked | Giits |
| 15years | Over 15Years Index | ||||
| Index-Unked | Giits | 630% | +/ | FTSE A UK Index-Linked | Giits |
| under 15years | Under 15Years Index | ||||
| TOTAL | 100% |
| he analysis | of investments (at bid marke |
t value) as at 31March 2023 was as follows: | |
|---|---|---|---|
| Market Value | |||
| 6 | |||
| UK Equities | |||
| Overseas | Equities | ||
| UK Bonds | 97,290,858 | 36 | |
| Property | 15,779,561 | 6 | |
| Managed | Funds | 153,434,529 | 57 |
| Cash | 423 814 | 1 | |
| E266,928,762 | 100% |
| he Fund performance ag |
ainst benchmark ov |
er 1 and 3years wa | s as follows: | ||
|---|---|---|---|---|---|
| Performance | over 1 ear % | Performance | over3 | ears % a | |
| Fund | Benchmark | Fund | Benchmark | ||
| Sarasin | -11.7 | -10.3 | -0.3 | 2,1 | |
| Le al BtGeneral | 9.3 | 9.0 | 17.5 | 17.2 | |
| OPF Consolidated | -1.4 | -0,3 | 8.5 | 10.0 |
| FOR | THE Y | EAR END | ED 31MARCH | 2023 | ||
|---|---|---|---|---|---|---|
| Notes | 2023 | 2022 | ||||
| I | E | |||||
| CONTRIBUTIONS AND BENEFITS |
||||||
| Contributions Receivable |
1(b), 3 | 5,150,229 | 9,672,563 | |||
| Transfers in |
942 | |||||
| 5 150229 | 9673505 | |||||
| Benefits Payable | 9,236,909 | 8,803,140 | ||||
| Transfers out | ||||||
| Administrative Expenses |
329842 | 457 506 | ||||
| 9566751 | 9260 646 | |||||
| Net AddidonsiflYithdrs | vrslsg | From | ||||
| Dealings arith OiFicers | 4416522 | 412859 | ||||
| RETURNS ON INVESTMENTS | ||||||
| Investment Income |
1(I3),6 | 2,902,815 | 3,038,676 | |||
| Change in Market Value of |
||||||
| Investments | (8,039,551) | 14,378,868 | ||||
| Investment Management Fees |
423 510 | 540 435 | ||||
| iYetRetvrns on Investments | 5560 246 | 16877 109 | ||||
| NET INCREASE/(DECREASE) |
IN | THE | ||||
| FUND DURING THE YEAR | (9,976,768) | 17,289,968 | ||||
| NET ASSETSOFTHE SCHEME | ||||||
| AtIApril 2022 | 278 505 420 | 261 215452 | ||||
| At31 Harsh 2fi23 | E268,528,652 | E278,505,420 |
| ONTRIB | UTION | S RECEIVABLE |
||
|---|---|---|---|---|
| 2023 | 2022 | |||
| f | E | |||
| Ordinary | Annual | Contribution | 5,150,229 | 5,672,563 |
| Annual | Capital | Contribution | 2,000,000 | |
| Special | Contribution | 2,000,000 | ||
| E5,150,229 | E9,672,563 |
| 4. | BENEFITS PAYABLE | FOR TH | E YEAR ENDED 3 | 1MARCH 2023 | |
|---|---|---|---|---|---|
| 2023 | 2022 | ||||
| E | E | ||||
| Pensions to retired Officers | 8,392,166 | 7,522,221 | |||
| Lump Sum Retirement | Grants | 844,743 | 1,280,919 | ||
| Transfers | |||||
| E9,236,909 | E8,803,140 | ||||
| 5. | ADMINISTRATIVE EXPENSES |
||||
| 2023 | 2022 | ||||
| E | E | ||||
| The Salvation Army Management |
Charge | 41,246 | 34,312 | ||
| Auditors Remuneration |
|||||
| Audit Fees | 15,864 | 13,620 | |||
| Actuarial Fees |
213,464 | 144,117 | |||
| Other Professional Fees |
58,800 | 265,457 | |||
| Other Expenses | 468 | ||||
| E329,842 | E457,506 | ||||
| 6. | INVESTMENT INCOME | ||||
| 2023 | 2022 | ||||
| E | E | ||||
| Income from Fixed Interest Securities | 2,249,123 | 2,149,292 | |||
| Dividends from Equities |
650,817 | 888,832 | |||
| Income from Property | Fund | ||||
| Interest on Cash Deposits | 2875 | 552 | |||
| E2,902,815 | E3,038,676 |
| Market | Purchases | Sales | Change in |
Market | |
|---|---|---|---|---|---|
| Value | at Cost | Proceeds | Market | Value | |
| 01/4/22 | Value | 31/03/23 | |||
| f | f | f | f | f | |
| Bonds | 62,852,675 | 173,021,049 | (122,779,866) | (15,803,000) | 97,290,858 |
| Equity Funds | 144,402,599 | 3,090,562 | (152,690,885) | 5,769,207 | 571,483 |
| Equities | 46,720,056 | 7,769,024 | (53,383,231) | (1,105,849) | |
| Gilt Funds | 145,669,624 | 7,193,422 | 152,863,046 | ||
| Property Fund |
19872892 273,848,222 |
329550 259 | ~328 853982 | ~4093 331 ~8039551 |
15779561 266,5D4,948 |
| Cash | |||||
| Deposits | 2 385041 | 423 814 | |||
| f276,233,263 | f266,928,762 |
| 2023 | 2022f | ||||||
|---|---|---|---|---|---|---|---|
| Market Value | |||||||
| Market Value | Book Value | Book Value | |||||
| f | f | ||||||
| BONDS | |||||||
| Fixed Interest Securities | |||||||
| Corporate | Bonds | 97,290,858 | 95,864,833 | 62,852,675 | 66,534,088 | ||
| UK Gilts | |||||||
| Overseas Corporate | |||||||
| Bonds | |||||||
| Overseas Government | |||||||
| Bond Funds | 152863046 | 145669 624 | |||||
| 250 153904 | 241 534 457 | 62 852 675 | 66 534088 | ||||
| Equity Funds | |||||||
| UK Quoted | 272,775 | 4,665,657 | 98,381,126 | 83,204,982 | |||
| Overseas | 298 708 | 1 633475 | 46 021 473 | 32 485 058 | |||
| 571483 | 6299 132 | 144402 599 | 115690 D4D | ||||
| EQUITIES | |||||||
| UK Quoted | 22,949,094 | 21,137,505 | |||||
| Overseas | 23 770 962 | 18368772 | |||||
| 46 720 056 | 39 506 277 | ||||||
| PROPERTY | FUND | 15779 561 | 15599 697 | 19872 892 | 15061473 | ||
| CASH DEPOSITS | |||||||
| Brokers Balances | |||||||
| Sterling | 423 814 | 423 814 | 2 385041 | 1915189 | |||
| TOTALS | E266 504 948 | E263 857 100 | E273 848 222 | E238 707067 |
| The Fund's | investment | assets | and | liabilities | have been fair | valued | using the | above | hierarchy | hierarchy | levels as |
|---|---|---|---|---|---|---|---|---|---|---|---|
| follows: | |||||||||||
| As at31 | March 2023 | Level 1 I |
Level 2 I |
Level I |
3 | TotalI | |||||
| UK Bonds | 97,290,858 | 97,290,858 | |||||||||
| Equity Funds (pooled | investment | 571,483 | 571,483 | ||||||||
| vehicles) | |||||||||||
| Gilt Funds | (pooled investment | vehicles) | 152,863,046 | 152,863,046 | |||||||
| Equities | |||||||||||
| Property | 15,779,561 | 15,779,561 | |||||||||
| Cash | 423 814 | 423 814 | |||||||||
| 97 714672 | 169 | 214090 | 6266 928 762 | ||||||||
| As at31 | March 2022 | Level 1 | Level 2 | Level | 3 | Total | |||||
| I | E | E | |||||||||
| UK Bonds | 62,852,675 | 62,852,675 | |||||||||
| Equity Funds (pooled | investment | 144,402,599 | 144,402,599 | ||||||||
| vehicles) | |||||||||||
| Equities | 46,720,056 | 46,720,056 | |||||||||
| Property | 19,872,892 | 19,872,892 | |||||||||
| Cash | 2 385041 | 2 385 041 | |||||||||
| 6119957772 | 6164 | 275 491 | & | 6276 233263 |
| Price inflation | 4.0% pa | |||
|---|---|---|---|---|
| Rate ofincrease | in allowances | 4.5% pa | ||
| Rate of pension | increases | 4.5% pa | ||
| Rate ofdeferred | pension | increases | 4.5% pa | |
| Pre-retirement discount |
rate | 3.7% pa | ||
| Past-retirement | discount | rate | 2.9%pa | |
| Management expenses |
5.0%ofthe future ordinary | contributions | ||
| (other than investment | related expenses) | |||
| Assets | Market value |