UTC (UK) Pension Scheme - Annual Report & Chair's Statement

THE UTC COMMON INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024

2024 Value

2023 Value

Equity PIVs

127,897 23,536 38,400

129,424 32,204 39,015

Diversified Growth Fund PIVs Absolute Return Fund PIVs

Property PIVs

-

7,096

Secure Income PIVs

218,263

214,649

408,096

422,388

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 Administrator, in conjunction with its advisers, monitors the situation closely and determines any actions that are considered to be necessary. This

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 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

2024 Value

2023 Value

Bonds

1,044,127

1,172,762

3

2

3

1

Pooled investment vehicles;

430,551

464,673

Direct

3

1

1

1

Indirect

2

2

3

3

Derivatives - net Cash deposits and other net assets

1,277

2,679

2

2

2

2

7,992

7,842

3

2

2

1

Repurchase agreements

(275,746)

(312,247)

2

1

3

1

Total

1,208,201

1,335,709

In the table above, a risk rating 1 is

2

3

22

Made with FlippingBook Publishing Software