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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Thousands of US dollars)
67
Dar Al-Maal Al-Islami Trust
Annual Report 2011
33. Funds
under management
34. Retirement benefit plans
Funds under management aggregated $3.5 billion (2010: $4.0 billion) and
represented amounts invested by clients and placed with funds managed by the
Group. These funds are invested without recourse to the Group. The Group
earned fees of approximately $27.0 million associated with such funds in 2011
(2010: $23.5 million).
At 31 December 2011, the Group had amounts due to funds under
management of $751.9 million (2010: $613.0 million) and due from of
$210.1 million (2010: $442.7 million).
Substantially all employees of the Group’s European incorporated subsidiaries
are covered either by insured or state pension plans. In accordance with
local practice, no pension plans exist in certain countries in which the Group
operates.
The Group’s principal retirement benefit plans are in Switzerland and are
defined benefit plans. The assets of the funded plans are held in separate trustee
administered funds. These plans are valued by independent actuaries every year
using the projected unit credit method.
The assumptions used in the actuarial valuations for 2011 are the best
estimates of the main parameters influencing the pension liability and are
detailed as follows:
2011
2010
Standard financial cost rate
2.8 %
2.8 %
Expected long-term rates of return
on plan assets
2.9 %
3.8 %
Rate of increase in compensation
2.0 %
2.0 %
The funded status of the Group’s pension
plans is as follows:
Projected benefits obligations
71,569
70,098
Plan assets at fair values
(61,691)
(66,712)
Funded status
9,878
3,386
Unrecognised actuarial (loss)/gain
(6,450)
(3,046)
Liability in the statement of financial position
3,428
340
Net periodic pension cost consists
of the following:
Service costs
2,418
2,129
Financial costs
1,818
2,038
Expected return on assets
(1,789)
(2,283)
Recognition of past service costs
4,063
-
Recognition of settlement (gains)/losses
(1,416)
-
Total cost
5,094
1,884
Employee contributions
(491)
(557)
Net periodic pension cost
4,603
1,327
Movement in the liability recognised in
the statement of financial position:
At 1 January
340
-
Conversion of an associate to subsidiary
-
484
Exchange differences
299
587
Net periodic pension cost
4,603
1,327
Employer contributions
(1,814)
(2,058)
At 31 December
3,428
340