Docusign Envelope ID: 7C07248F-983B-4F8B-904D-FCB9B680B5CE
THE UTC COMMON INVESTMENT FUND
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023
The CIF manages this exposure by investing in pooled funds that invest in a diverse portfolio of instruments across various markets.
At the year end, the CIF’s exposure to investments subject to other price risk was:
2023 Value
2022 Value
129,424
Equity PIVs
150,543
32,204
Diversified Growth Fund PIVs
65,796
39,015
Absolute Return Fund PIVs
76,806
7,096
Property PIVs
36,895
214,649
Secure Income PIVs
116,554
422,388
446,594
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 Administrator, in conjunction with its advisers, monitors the situation closely and determines any actions that are considered to be necessary. This includes monitoring the CIF’s investment portfolio and the operational impact on the CIF. The extent of the impact on the CIF’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 CIF’s investment asse ts and investment liabilities have been impacted. Whilst the Administrator 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.
The following table summarises the extent to which the various classes of investments are affected by financial risks:
Credit risk
Market currency risk
Market interest rate risk
Market other price risk
2023 Value
2022 Value
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 Cash deposits and other net assets
(1,675)
2
2
2
2
7,842
11,338
3
2
2
1
Repurchase agreements
(312,247)
(311,399)
2
1
3
1
Total
1,335,709
1,326,577
In the table above, a risk rating ‘ 1 ’ is deemed none/hardly any risk, ‘ 2 ’ is partial and ‘ 3 ’ is significant.
22
Made with FlippingBook Publishing Software