Annual Report - EDP

notes to the EDP consolidated - Energias de Portugal, and company S.A. financial statementsfor the years ended 31 december 2012 and 2011Notes to the Consolidated and Company Financial Statementsfor the years ended 31 December 2012 and 2011Shares include securities issued by Group companies that are analysed as follows:Thousands of Euros 2012 2011Shares:EDP Renováveis 5,911 5,849EDP S.A. - 275,911 5,876Pension fund assets in Brazil as at 31 December 2012 and 2011 are analysed as follows:Fund assets by natureThousands of Euros Liquidity Bonds Shares Property Other Total31 December 2012 - 289,354 26,144 1,109 4,824 321,43131 December 2011 - 272,074 31,949 1,281 6,080 311,384Fund assets by nature% Liquidity Bonds Shares Property Other Total31 December 2012 - 90.02% 8.13% 0.35% 1.50% 100.00%31 December 2011 - 87.38% 10.26% 0.41% 1.95% 100.00%Assumptions regarding the discount rate and expected return rate of the assetsThe discount rates used for the EDP Group pension plan were selected based on an analysis of the rates of return available at the date for the bonds considered themost appropriate. Bonds with maturities and ratings considered appropriate were selected considering the amount and the periods that the benefits are expected tobe paid.The expected return rate of assets for 2012, as presented as follows:2012ExpectedannualPortugalWeight return rateBonds 55.40% 2.90%Shares 23.60% 6.80%Hedge Funds 3.10% 3.90%Property 16.00% 4.50%Other 1.90% 6.50%Total 100.00% 5.00%The real return rate of assets in 2012 was positive in 8.73% (2011: negative in 1.39%).2012ExpectedannualBrazilWeight return rateBonds 82.40% 10.22%Shares 14.40% 16.27%Hedge Funds - -Property 0.60% 10.01%Other 2.60% 10.77%Total 100.00% 11.10%The expected return rate of assets for 2013 and subsequent years, in accordance with expectations in January 2013, was determined based on the investmentobjectives by class of assets and the best estimate of long term return for each class, amounting to 3.25% in Portugal and 9.30% in Brazil.As at 31 December 2012 the amount of future benefits expected to be paid, relating to the activity in Portugal, Spain and Brazil, is analysed as follows:PortugalExpected future benefits to be paidMedical plansPensions and otherbenefitsTotal2013 188,545 35,833 224,3782014 180,193 36,646 216,8392015 169,099 37,572 206,6712016 158,460 38,233 196,6932017 150,317 39,525 189,8422018 139,574 40,356 179,9302019 131,569 41,513 173,0822020 123,063 42,472 165,5352021 111,781 43,362 155,1432022 100,340 43,780 144,120EDP - Annual Report 2012229