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
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