19. Pension arrangements (continued)

The major categories of assets as a proportion of total assets are as follows:

– 10%) recognised in the statement of financial position:

The actual return on the Scheme’s assets was a decrease of £17,949,000 (2021: decrease of £903,000). The assets do not include any investment in shares or property of the Group.

The projected charge to the income statement for the next period is £301,000.

19. Pension arrangements (continued)

Recognised in other comprehensive income over the year:

Reconciliation of assets and defined benefit obligation

The change in fair value of assets over the year was:

The change in present value of the defined benefit obligation over the year was:

Defined contribution schemes

The pension charge in respect of defined contribution schemes represents contributions payable by the Group to such schemes and amounted to £679,000 (2021 – £620,000), of which nil (2021 – nil) was unpaid at the balance sheet date.

20. Hedging activities and derivatives

The Group has entered into foreign currency and interest rate swap contracts with notional amounts of $321m (2021 – $321m) whereby it pays a fixed rate of interest of between 5.25% and 7.40%. The swaps are used to hedge the exposure to the variable foreign currency and interest rate payments on the US dollar variable rate unsecured loans (note 15).

The loans and interest rate swaps have the same critical terms and are fully effective. Cash flows are expected to occur between August 2023 and June 2051 and will be recognised through the income statement at that time.

The aggregate fair value of the interest rate swaps at the end of the reporting period was an asset of £117,640,000 (2021 – £86,360,000).

The Group enters into foreign currency and interest rate swap contracts with various counterparties, principally financial institutions with investment grade credit ratings. The valuation techniques applied to fair value these derivatives employ the use of market observable inputs and include swap models which use present value calculations. The model incorporates various inputs including the credit quality of counterparties and forward rates.

As at 31 December 2022, the marked-to-market value of derivative asset positions is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the hedge effectiveness assessment of these derivatives designated in hedge relationships recognised at fair value.

21. Capital and other commitments

Outstanding capital commitments were as follows:

There were no outstanding commitments for capital expenditure in the company at either year end.

The Group had the following future minimum operating lease receivables under non-cancellable operating leases in respect of investment properties at the year end:

22. Related party relationships and transactions

Viscount Chelsea DL, Chairman and director of Cadogan Group Limited, rents residential property owned by the Group. The rent paid by Viscount Chelsea in the year totalled £313,122. At 31 December 2022 the outstanding balance owed to the Group was £2,852 (2021 – £2,600). The annual rental charge is at market rate.

23. Post balance sheet events

Since the year end, the Group has bought three properties in its regional property fund at an aggregate cost of £72m. The Group has also purchased a property investment group whose principal assets are two properties at a cost of £39m. On 15 March 2023 the Group refinanced its revolving credit facilities, increasing them by £50m to £350m in a new syndicated revolving credit facility for a term of 3½ years expiring on 15 September 2026, with two 1-year extension options exercisable from 1½ years and 2½ years of the start date.

24. Ultimate ownership

The ultimate holding company is Cadogan Settled Estates Holdings Limited, which is registered in England and Wales and which is ultimately controlled by The Eighth Earl Cadogan’s 6 December 1961 Settlement. The consolidated financial statements of Cadogan Settled Estates Holdings Limited may be obtained from The Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.