UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2024
NOTES TO THE FINANCIAL STATEMENTS
Details of the Asset Back Funding Arrangements are set out in note 13. The Scheme holds an interest in two
credit risk relating to these entities. Credit risk is primarily mitigated throu
t value
on the payments due from the SPV asset.
Other matters
In the 12-month period to 31 December 2024, the dominant economic factors have been high, but falling, inflation through the first half of 2024, followed by interest rates cuts through the second half of the year. In the final quarter of 2024, inflation, and expectations of future inflation, began to rise again. The election of Donald Trump as US president exacerbated these expectations as markets attempted to price in the impact of his policies such as tax cuts and trade tariffs, which are expected to raise US inflation. These events have had a significant effect on domestic and global economies, with disruption and volatility in financial markets. The Trustee, in conjunction with its advisers, monitors the situation closely and determines any actions that are
impact on the Scheme and the covenant of the Employer.
on future developments in financial markets and the overall economy, all of which are uncertain and cannot be predicted. Since the year end, the val been impacted. Whilst the Trustee monitors the overall position, it has not, at this time, quantified the change (being an increase or decrease) in market value of the investment assets and investment liabilities as markets remain fluid and unpredictable and therefore such an estimate cannot be made.
20 Concentration of investments
Investments accounting for more than 5% of the net assets of the Scheme at the year-end date were:
Proportion of net assets (%)
Proportion of net assets (%)
2024
2023
Asset Backed Funding Goodrich ABC Asset Backed Funding UTC ABC Legal & General Secure Income Fund BlackRock Secure Income Fund
120,100 86,500 85,903 73,261
8.3 6.0 6.0 5.1
127,900 92,100 85,496
8.1 5.8 5.4 n/a
n/a
year-end date.
With the exception of the Asset Backed Funding arrangements (detailed in note 13) the above investments are pooled investment vehicles which have multiple underlying assets, none of which exceeds 5% of the net assets of the Scheme.
21 Employer related investments
At 31 December 2024, there were no holdings of assets that were indirectly invested in RTX Corporation, the ultimate parent of the principal employer of the Scheme (2023: less than 0.01% through pooled investment vehicles with BlackRock).
With the exception of AVCs, Asset Backed Funding and Insurance policies, all investment assets are managed within the CIF.
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