33. Funds
under management
34. Retirement benefit plans
Notes to the Consolidated Financial Statements
(Thousands of US dollars)
64
Dar Al-Maal Al-Islami Trust
Annual Report 2012
Funds under management aggregated $3.7 billion (2011: $3.5 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 $43.8 million associated with such funds in 2012
(2011: $27.0 million).
At 31 December 2012, the Group had amounts due to funds under management
of $812.8 million (2011: $751.9 million) and due from of $264.4 million
(2011: $210.1 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 2012 are the best
estimates of the main parameters influencing the pension liability and are
detailed as follows:
2012
2011
Standard financial cost rate
2.8%
2.8%
Expected long-term rates of return
on plan assets
3.0%
2.9%
Rate of increase in compensation
2.0%
2.0%
The funded status of the Group’s pension
plans is as follows:
Projected benefits obligations
65,434
71,569
Plan assets at fair values
(52,052)
(61,691)
Funded status
13,382
9,878
Unrecognised actuarial (loss)/gain
(9,020)
(6,450)
Liability in the statement of financial position
4,362
3,428
Net periodic pension cost consists
of the following:
Service costs
2,146
2,418
Financial costs
2,042
1,818
Expected return on assets
(1,846)
(1,789)
Recognition of past service costs
-
4,063
Recognition of settlement (gains)/losses
-
(1,416)
Total cost
2,342
5,094
Employee contributions
(421)
(491)
Net periodic pension cost
1,921
4,603
Movement in the liability recognised in
the statement of financial position:
At 1 January
3,428
340
Exchange differences
534
299
Net periodic pension cost
1,921
4,603
Employer contributions
(1,521)
(1,814)
At 31 December
4,362
3,428
