THE UTC COMMON INVESTMENT FUND
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024
Pooled investment vehicles analysed by type of arrangement are as follows:
2024 Value
2023 Value
Legal nature of pooled investment vehicle
UK unit-linked insurance contract Jersey domiciled unit trust Guernsey domiciled unit trust UK domiciled UCITS OEIC Irish domiciled UCITS OEIC Luxembourg domiciled AIFMD
213,801 82,634
214,920 96,632
-
7,096
38,400 22,455 73,261
39,015 42,285 64,725
430,551
464,673
In the table above the following acronyms apply:
UCITS: Undertakings for the Collective Investment in Transferable Securities OEIC: Open ended investment company AIFMD: Alternative Investment Fund Manager Directive
Indirect credit risk arises in relation to underlying investments held in the bond and pooled investment vehicles. This risk is mitigated by only investing in pooled funds which invest predominantly in investment grade credit rated securities or using active management to mitigate default risk.
basis in addition to having meetings with each manager from time to time as necessary. The Administrator has a written agreement with each investment manager, which contains a number of restrictions on how each investment manager may operate.
Market risk: interest rates
bonds, interest rate swaps and bond and interest rate futures, either as segregated investments or through pooled vehicles, and cash and repurchase agreements. Under this strategy, if interest rates fall, the value of protection assets will rise to help match the increase in actuarial liabilities arising from a fall in the discount rate. Similarly, if interest rates rise, the protection assets will fall in value, as will the actuarial liabilities because of an increase in the discount rate.
Market risk: currency
The CIF is exposed to currency risk because some of its investments are held in overseas markets, either as segregated investments or via pooled investment vehicles. The investment managers manage overseas currency exposure through a currency hedging policy.
Market risk: other price
equities, secure income assets and diversified growth funds, all held in pooled vehicles.
The CIF manages this exposure by investing in pooled funds that invest in a diverse portfolio of instruments across various markets.
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