Non-Consolidated Annual Report 2016

BARBADOS PUBLIC WORKERS’ CO-OPERATIVE CREDIT UNION LIMITED NON-CONSOLIDATED ANNUAL REPORT 2016 45 BARBADOS PUBLIC WORKERS' CO-OPERATIVE CREDIT UNION LIMITED Notes to the Non-consolidated Financial Statements For the year ended March 31, 2016 (Expressed in Barbados dollars) 29 13. Pension Plan Asset, continued The Plan is invested in a segregated pensions fund consisting of two Funds which cover a broad spectrum of available assets. The strategic investment policy of the Funds can be summarised as follows: Bonds Fund: A unit trust with a strategy of acquiring regional and non-regional long-dated securities, where possible, but the majority of its financial investments are still predominantly in Barbados currency. The Fund’s objective is to generate income and preserve capital through investment in competitive yielding fixed income securities including mortgages, bonds and other debt instruments. Equity Fund: This is a unit trust that invests mainly in Barbadian equities, Barbadian real estate, commercial mortgages, foreign equities and bonds. This Fund’s objective is to provide long-term capital growth through investment in a diversified portfolio of equity securities and real estate. The current instruction is to invest all new cash flows 50% in the Bonds Fund and 50% in the Equity Fund. At present, approximately 45% of the Plan’s assets are invested in the Equity Fund and 55% are invested in the Bonds Fund. a) The amounts recognised in the statement of financial position are determined as follows: 2016 2015 Present value of obligation to plan members $ (8,919,972) (8,164,276) Pension plan assets at fair value 9,357,750 8,851,705 Asset recognised in the statement of financial position $ 437,778 687,429