EC Meeting Papers July 2018

General Federation of Trade Unions Pension Scheme

Notes to the Financial Statements

Year Ended 31 December 2017

10 Investment risk disclosures (continued)

b) Currency risk

The Scheme is subject to currency risk because some of the Scheme’s investments are held in overseas markets, either as segregated investments or via pooled investment vehicles.

c) Interest rate risk

The Scheme is subject to interest rate risk on LDI investments comprising bonds and interest rate swaps held either as segregated investments or through pooled vehicles and cash.

d) Other price risk

Other price risk arises principally in relation to the Scheme’s return seeking portfolio which includes directly held equities, equities held in pooled vehicles, equity futures, hedge funds, private equity and investment properties.

The Scheme manages this exposure to other price risk by constructing a diverse portfolio of investments across various markets.

11 Current assets

GFTU

PCS

2017

2016

£

£

£

£

Contributions due from employer in respect of: Employer

- -

2,028 1,321

2,028 1,321

2,028 1,321

Employees Other debtors Cash balances

64,653 18,389

-

64,653 44,183

64,653 44,183

25,794

83,042

29,143

112,185

112,185

12 Current liabilities

GFTU

PCS

2017

2016

£

£

£

£

Other creditors

3,091

960 963

4,051

4,051

Accruals

26,770

27,733

27,733

29,861

1,923

31,784

31,784

15