CARRIER (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2020
NOTES TO THE 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
2020 Value
2019 Value
Credit risk
Bonds
28,982
30,005
3
2
3
1
Pooled investment vehicles;
93,732
91,746
Direct
3
1
1
1
Indirect
2
2
3
3
Derivatives
368 220
135 282
2
2
2
2
AVC investments Cash deposits and other net assets
3
1
1
3
911
1,116
3
2
1
1
124,213
123,284
In the table above, a risk rating ‘1’ is deemed none/hardly any risk, ‘2’ is partial and ‘3’ is significant.
COVID 19
Since March 2020, Covid-19 has had a profound effect on domestic and global economies, with disruption and volatility in the financial markets.
The Trustee, in conjunction with their advisers, monitor the situation closely and review any actions that are deemed to be necessary. This includes monitoring the employer covenant, the operational impact on the Scheme and the Scheme’s investment portfolio. 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.
18 Concentration of investments
Investments accounting for more than 5% of the net assets of the Scheme at the year-end date were:
Proportion of net assets (%)
Proportion of net assets (%)
2020
2019
Legal & General UK Equity Fund
17,249
13.6
15,462
12.3
Legal & General European Equity Fund - Hedged Legal & General European Equity Fund - Unhedged Legal & General North America Equity Fund - Hedged Legal & General North America Equity Fund - Unhedged Legal & General Emerging Markets Equity Fund Legal & General Over 5 years Gilts Fund
7,356 7,379 7,527
5.8 5.8 5.9
7,977 7,957 7,600
6.4 6.3 6.1
7,117 7,550
5.6 5.9
6,556 6,344
5.2 5.1
14,321
11.3
12,742
10.2
All of the above investments are pooled investment vehicles which have multiple underlying assets, none of which exceeds 5% of the net assets of the Scheme.
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