UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2024
NOTES TO THE FINANCIAL STATEMENTS
Analysis for the prior year end is as follows:
2023 Total
(1)
(2)
(3)
Level
Bonds
- -
1,172,762
-
1,172,762
Pooled investment vehicles
335,519
129,154 (3,362) 220,000
464,673
Derivatives - net
517
5,524
2,679
Asset Backed Funding
- - -
-
220,000 23,855
AVC investments Insurance policies
23,086
769 720
- - -
720 971
Cash
971
- - -
Other investment balances Repurchase agreements
6,871
6,871
-
(312,247)
(312,247)
Total
8,359
1,224,644
347,281
1,580,284
19 Investment risks
Types of risk relating to investments
FRS 102 requires the disclosure of information in relation to certain investment risks.
Credit risk : this is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.
Market risk : this comprises currency risk, interest rate risk and other price risk.
Currency risk : this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in foreign exchange rates. Interest rate risk : this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market interest rates. Other price risk : this is the risk that the fair value or future cash flows of a financial asset will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Trustee determines the investment strategy. The Scheme has exposure to these risks because of the investments it makes in following the investment strategy set out below. The CIF Administrator manages investment risk, including credit risk and market risk; within agreed risk limits which are set taking into account the strategic investment objectives. These investment objectives and risk limits are implemented through the investment management agreements in place with the CIF investment managers and monitored by the CIF Administrator by regular reviews of the investment portfolio. , and the legal nature of pooled investment vehicles, is set out in the financial statements of the CIF which are appended to these financial statements. This does not include AVC investments or insurance policies as these are not significant to the overall Scheme investments nor the Asset Backed Funding, none of which are managed within the CIF.
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