132 CORBION ANNUAL REPORT 2017 Notes to the consolidated financial statements
The strategic investment policy of the scheme can be summarized as follows: • A strategic asset mix comprising 50% in return-seeking assets and 50% in matching (bondtype) assets. • The return-seeking asset portfolio comprises a mix of equity investments and diversified growth funds. • Interest rate and inflation risk is managed through the use of liability-driven investments and corporate bonds of an appropriate duration. • Currency risk is managed by implementing a 50% currency hedge on the global equity holding. The average duration of the defined benefit obligation as at 31 December 2017 is 25 years. Breakdown of the amounts recognized in respect of defined benefit pension plans in the income statement and statement of comprehensive income
2017
2016
Current service costs
0.5
0.4
Net interest expense
0.5
0.3
Past-service costs
0.9
Total pension costs recognized in income statement
1.9
0.7
• Return on plan assets (excluding amounts included in interest income)
-5.0
-15.6
• Actuarial (gains)/losses arising from changes in demographic assumptions
-0.4
• Actuarial (gains)/losses arising from changes in financial assumptions
-8.1
25.9
0.5
-0.5
Remeasurements net defined benefit liability
• Actuarial (gains)/losses arising from experience adjustments Total pension costs recognized in other comprehensive income
-13.0
9.8
Total
-11.1
10.5
As at 31-12-2017
As at 31-12-2016
Present value of defined benefit obligations
86.7
99.2
Fair value of plan assets
83.0
81.1
3.7
18.1
3.7
18.1
The amounts recognized in the statement of financial position
Funded status Restrictions on assets recognized Net liability