Docusign Envelope ID: 7C50003C-051D-4E0C-907A-F452AD5C4EA2
UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2023
NOTES TO THE FINANCIAL STATEMENTS
Further detail of the Scheme’s investment strategy is also contained in the CIF financial statements which are appended to these financial statements.
The following table summarises the extent to which the various classes of investments are affected by financial risks:
Market currency risk
Market interest rate risk
Market other price risk
2023 Value
2022 Value
Credit risk
1,172,762
Bonds
1,145,443
3
2
3
1
Pooled investment vehicles;
464,673
482,870
Direct
3
1
1
1
Indirect
2
2
3
3
2,679
Derivatives - net
(1,675)
2
2
2
2
220,000
Asset Backed Funding
212,600
3
1
3
1
23,855
AVC investments
23,193
3
1
1
3
720
Insurance policies
1,012
3
1
3
3
Cash
971
3,681
3
2
2
1
Other net investment balances
6,871
7,657
3
2
1
1
Repurchase agreements
(312,247)
(311,399)
2
1
3
1
Total
1,580,284
1,563,382
In the table above, a risk rating ‘1’ is deemed none/hardly any risk, ‘2’ is partial and ‘3’ is significant.
Other matters
During 2023/2024, geopolitical issues (such as Russia’s war in Ukraine) and economic issues (such as increases in the rates of inflation and interest rates and movements in foreign currencies) have had a profound effect on domestic and global economies, with disruption and volatility in the financial markets. The Trustee, in conjunction with its advisers, monitors the situation closely and determines any actions that are considered to be necessary. This includes monitoring the Scheme’s investment portfolio, the operational impact on the Scheme and the covenant of the Employer. The extent of the impact on the Scheme’s investment portfolio, including financial performance, will depend on future developments in financial markets and the overall economy, all of which are uncertain and cannot be predicted. Since the year end, the value of the Scheme’s investment assets and investment liabilities have 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.
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