Category: housing

MIL-OSI Economics: Monetary developments in the euro area: March 2025
Source: European Central Bank

29 April 2025

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 decreased to 3.6% in March 2025 from 3.9% in February, averaging 3.7% in the three months up to March. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, increased to 3.8% in March from 3.4% in February. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 1.5% in March from 2.0% in February. The annual growth rate of marketable instruments (M3-M2) decreased to 11.3% in March from 18.0% in February.

Chart 1

Monetary aggregates

(annual growth rates)

Data for monetary aggregates

Looking at the components’ contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 2.4 percentage points (up from 2.2 percentage points in February), short-term deposits other than overnight deposits (M2-M1) contributed 0.4 percentage points (down from 0.6 percentage points) and marketable instruments (M3-M2) contributed 0.7 percentage points (down from 1.1 percentage points).

Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 3.5% in March, compared with 3.4% in February, while the annual growth rate of deposits placed by non-financial corporations decreased to 2.3% in March from 3.0% in February. Finally, the annual growth rate of deposits placed by investment funds other than money market funds increased to 16.2% in March from 8.5% in February.

Counterparts of the broad monetary aggregate M3

The annual growth rate of M3 in March 2025, as a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), can be broken down as follows: net external assets contributed 2.7 percentage points (down from 3.1 percentage points in February), claims on the private sector contributed 2.1 percentage points (down from 2.2 percentage points), claims on general government contributed 0.2 percentage points (as in the previous month), longer-term liabilities contributed -1.3 percentage points (up from -1.5 percentage points), and the remaining counterparts of M3 contributed -0.1 percentage points (as in the previous month).

Chart 2

Contribution of the M3 counterparts to the annual growth rate of M3

(percentage points)

Data for contribution of the M3 counterparts to the annual growth rate of M3

Claims on euro area residents

The annual growth rate of total claims on euro area residents stood at 1.7% in March 2025, unchanged from the previous month. The annual growth rate of claims on general government stood at 0.4% in March, unchanged from the previous month, while the annual growth rate of claims on the private sector stood at 2.2% in March, compared with 2.3% in February.

The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) increased to 2.6% in March from 2.4% in February. Among the borrowing sectors, the annual growth rate of adjusted loans to households increased to 1.7% in March from 1.5% in February, while the annual growth rate of adjusted loans to non-financial corporations increased to 2.3% in March from 2.1% in February.

Chart 3

Adjusted loans to the private sector

(annual growth rates)

Data for adjusted loans to the private sector

Notes:
- Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
- “Private sector” refers to euro area non-MFIs excluding general government.
- Hyperlinks lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.
MIL OSI Economics –
April 29, 2025
MIL-OSI Economics: Piero Cipollone: Navigating a fractured horizon: risks and policy options in a fragmenting world

Source: European Central Bank

Speech by Piero Cipollone, Member of the Executive Board of the ECB, at the conference on “Policy challenges in a fragmenting world: Global trade, exchange rates, and capital flow” organised by the Bank for International Settlements, the Bank of England, the ECB and the International Monetary Fund

Frankfurt am Main, 29 April 2025

I’m honoured to welcome you to this conference, jointly organised by the Bank for International Settlements (BIS), the Bank of England, the European Central Bank (ECB) and the International Monetary Fund (IMF).^[1]

Today, we come together to discuss the urgent challenges posed by global fragmentation – a growing risk to our interconnected world. Earlier this month, the President of the United States announced tariff hikes, sending shockwaves through the global economy – a stark reminder that the fractures we face are no longer hypothetical, but real.

This announcement is but the latest chapter in a series of four major shocks that have been reshaping our world in recent years.

First, since 2018 the intensifying power struggle between the United States and China has led to tit-for-tat tariffs affecting nearly two-thirds of the trade between these two economic giants. Second, starting in 2020, the pandemic caused unprecedented disruptions to supply chains, which prompted a re-evaluation of the balance between global integration and resilience. Third, in 2022 Russia’s unjustified invasion of Ukraine not only triggered an energy crisis but also deepened a geopolitical divide that continues to have worldwide repercussions. And fourth, we are now facing the rising risk of economic fragmentation within the western bloc itself, as new trade barriers threaten long-standing international partnerships.

The data paint a sobering picture. Geopolitical risk levels have surged to 50% above the post-global financial crisis average, and uncertainty surrounding trade policy has risen to more than eight times its average since 2021.^[2] What we are experiencing is not merely a temporary disruption – it is a profound shift in how nations interact economically, financially and diplomatically. So, it does not come as a surprise that financial markets have experienced considerable volatility in recent weeks. It remains to be seen if, for markets to find a stable equilibrium, it will be enough to step back from the current international economic disorder towards a more stable, predictable and reliable trading system – a development that appears elusive in the short term. Against this backdrop, recent moves in exchange rates, bond yields and equities, suggest that US markets have not been playing their usual role as a safe haven in this particular episode of stress. This potentially has far-reaching longer-term implications for capital flows and the international financial system.

Today I will focus on three key points. First, we are seeing increasing signs of fragmentation becoming visible across the economy and financial system. Second, the implications of this accelerating fragmentation could extend far beyond the immediate disruptions, with consequences for growth, stability and prosperity. Third, in this evolving economic landscape, central banks must adapt their approaches yet retain a steadfast focus on their core mandates, while striving to preserve international cooperation.

The emerging reality of fragmentation

Let me begin by addressing a common belief – still held by many until recently – that, despite rising geopolitical tensions, globalisation appears largely resilient. Headline figures in trade and cross-border investment, for example, do indeed appear to support this belief. In 2024 world trade expanded to a record USD 33 trillion – up 3.7% from 2023. Similarly, the global stock of foreign direct investment reached an unprecedented USD 41 trillion.^[3] However, these surface-level indicators may not reflect the underlying realities, creating a misleading sense of stability when important changes are already underway. In reality, fragmentation is already happening in both the global economy and the financial system.

Fragmentation of the real economy

Fragmentation is most evident in rebalancing trade, driven by escalating geopolitical tensions. Take, for instance, the escalating US-China trade tensions that have been intensifying since 2018. Studies show the impact of geopolitical distance on trade has become notably negative. A doubling of geopolitical distance between countries – akin to moving from the position of Germany to that of India in relation to the United States – decreases bilateral trade flows by approximately 20%.^[4]

The series of shocks to the global economy in recent years have also contributed to this fragmentation. According to gravity model estimates, trade between geopolitically distant blocs has significantly declined. Trade between rivals is about 4% lower than it might have been without the heightened tensions post-2017, while trade between friends is approximately 6% higher.^[5] Global value chains are being reconfigured as companies respond to these new realities. In 2023 surveys already indicated that only about a quarter of leading firms operating in the euro area^[6] that sourced critical inputs from countries considered subject to elevated risk had not developed strategies to reduce their exposure.^[7]

However, these shifting trade patterns have not yet been reflected in overall global trade flows. Non-aligned countries have played a crucial role as intermediaries, or connectors, helping to sustain global trade levels even as direct trade between rival blocs declines.^[8] But this stabilising influence is unlikely to endure as trade fragmentation deepens and geopolitical alliances continue to shift.

The tariffs announced by the US Administration are far-reaching and affect a substantial share of global trade flows. The effects on the real economy are likely to be material. In its World Economic Outlook, published last week, the International Monetary Fund revised down global growth projections for 2025-26 by a cumulative 0.8 percentage points and global trade by a cumulative 2.3 percentage points.^[9] This notably reflects a negative hit from tariffs that ranges between 0.4% to 1% of world GDP by 2027.^[10] In particular, IMF growth projections for the United States have been revised down by a cumulative 1.3 percentage points in 2025-26. The cumulative impact on euro area growth is smaller, at 0.4 percentage points.

Financial fragmentation

The fragmentation we are witnessing in global trade is mirrored in the financial sector, where geopolitical tensions are also reshaping the landscape.

In recent years, global foreign direct investment flows have increasingly aligned with geopolitical divides. Foreign direct investment in new ventures has plunged by nearly two-thirds between countries from different geopolitical blocs. However, strong intra-bloc investments have helped sustain overall foreign direct investment levels globally, masking some of the fragmentation occurring beneath the surface.^[11]

But, as with trade flows, this dynamic is unlikely to persist as geopolitical tensions grow within established economic blocs. For instance, increased geopolitical distance is shown to curtail cross-border lending. A two standard deviation rise in geopolitical distance – akin to moving from the position of France to that of Pakistan in relation to Germany – leads to a reduction of 3 percentage points in cross-border bank lending.^[12]

The impact of fragmentation in global financial infrastructure is perhaps even more revealing. Since 2014 correspondent banking relationships – crucial for facilitating trade flows across countries – have declined by 20%. While other factors – such as a wave of concentration in the banking industry, technological disruptions and profitability considerations – have played a role^[13], the contribution of the geopolitical dimension can hardly be overstated. The repercussions of this decline can be profound. Research shows that when correspondent banking relationships are severed in a specific corridor, a firm’s likelihood of continuing to export between the two countries of that corridor falls by about 5 percentage points in the short term, and by about 20 percentage points after four years.^[14]

Contributing to this trend, countries such as China, Russia and Iran have launched multiple initiatives to develop alternatives to established networks such as SWIFT, raising the possibility of a fragmented global payment system.^[15] Geopolitical alignment now exerts a stronger influence than trade relationships or technical standards in connecting payment systems between countries.^[16] This poses risks of regional networks becoming more unstable, increased trade costs and settlement times, and reduced risk sharing across countries.

Additionally, we are witnessing a noticeable shift away from traditional reserve currencies, with growing interest in holding gold. Central banks purchased more than 1,000 tonnes of gold in 2024, almost double the level of the previous decade, with China being the largest purchaser, at over 225 tonnes. At market valuations, the share of gold in global official reserves has increased, reaching 20% in 2024, while that of the US dollar has decreased. Survey data suggest that two-thirds of central banks invested in gold to diversify, 40% to protect against geopolitical risk and 18% because of the uncertainty over the future of the international monetary system.^[17] There are further signs that geopolitical considerations increasingly influence decisions to invest in gold. The negative correlation of gold prices with real yields has broken down since 2022, a phenomenon we have also observed in recent weeks. This suggests that gold prices have been influenced by more than simply the use of gold to hedge against inflation. Moreover, countries geopolitically close to China and Russia have seen more pronounced increases in the share of gold in official foreign reserves since the last quarter of 2021.

The looming consequences of fragmentation

Accelerating fragmentation is resulting in the immediate disruptions we are now seeing, but this is likely to only be the beginning – potentially profound medium and long-term consequences for growth, stability and prosperity can be expected.

Medium-term impacts

The initial consequences of fragmentation are already evident in the form of increased uncertainty. In particular, trade policy uncertainty has led to a broader rise in global economic policy instability, which is stifling investment and dampening consumption. Our research suggests that the recent increase in trade policy uncertainty could reduce euro area business investment by 1.1% in the first year and real GDP growth by around 0.2 percentage points in 2025-26^[18]. Consumer sentiment is also under strain, with the ECB’s Consumer Expectations Survey revealing that rising geopolitical risks are leading to more pessimistic expectations, higher income uncertainty and ultimately a lower willingness to spend.^[19] Moreover, ECB staff estimates suggest that the observed increase in financial market volatility might imply lower GDP growth of about 0.2 percentage points in 2025.

Over the medium term, tariffs are set to have an unambiguously recessionary effect, both for countries imposing restrictions and those receiving them. The costs are particularly high when exchange rates fail to absorb tariff shocks, and some evidence suggests exchange rates have become less effective in this role.^[20]

The Eurosystem’s analysis of potential fragmentation scenarios suggests that such trade disruptions could turn out to be significant. In the case of a mild decoupling between the western (United States-centric) and the eastern (China-centric) bloc, where trade between East and West reverts to the level observed in the mid-1990s, global output could drop by close to 2%.^[21] In the more extreme case of a severe decoupling – essentially a halt to trade flows – between the two blocs, global output could drop by up to 9%. Trade-dependent nations would bear the brunt of these trade shocks, with China potentially suffering losses of between 5% and 20%, and the EU seeing declines ranging from 2.4% to 9.5% in the mild and severe decoupling scenarios respectively. The analysis also shows that the United States would be more significantly affected if it imposed additional trade restrictions against western and neutral economies – with real GDP losses of almost 11% in the severe decoupling scenario – whereas EU losses would increase only slightly in such a case.^[22]

The inflationary effects of trade fragmentation are more uncertain. They depend mainly on the response of exchange rates, firms’ markups and wages. Moreover, they are not distributed equally. While higher import costs and the ensuing price pressures are likely to drive up inflation in the countries raising tariffs, the impact is more ambiguous in other countries as a result of the tariffs’ global recessionary effects, which push down demand and commodity prices, as well as of the possible dumping of exports from countries with overcapacity. The short to medium-term effects may even prove disinflationary for the euro area, where real rates have increased and the euro has appreciated following US tariff announcements.

In fact, a key feature of most model-based assessments is that higher US tariffs lead to a depreciation of currencies against the US dollar, moderating the inflationary effect for the United States and amplifying it for other countries. But so far we have seen the opposite: the risk-off sentiment in response to US tariff announcements and economic policy uncertainty have led to capital flows away from the United States, depreciating the dollar and putting upward pressure on US bond yields. Conversely, the euro area benefited from safe haven flows, with the euro appreciating and nominal bond yields decreasing.

Long-term structural changes

The long-term consequences of economic fragmentation are inherently difficult to predict, but by drawing on historical examples and recognising emerging trends, it’s clear that we are on the verge of significant structural changes. Two areas stand out.

The first one is structurally lower growth. On this point, international economic literature has reached an overwhelming consensus.^[23] Quantitatively, point estimates might vary. For example, research of 151 countries spanning more than five decades of the 20th century reveals that higher tariffs have typically led to lower economic growth. This is largely due to key production factors – labour and capital – being redirected into less productive sectors.^[24]

However, data from the late 19th and early 20th centuries, a period which tariff supporters often look back to, seem to tell a different story. At that time, trade barriers across countries were high – the US effective tariff rate, for example, reached almost 60%, twice as high as after the 2 April tariffs. And sometimes countries imposing higher trade barriers enjoyed higher growth, which may provide motivation for current policymakers’ trade tariff policies. But these episodes need to be read in historical context. Before 1913, tariffs mostly shielded manufacturing, a high-productivity sector at the time, attracting labour from other, less productive sectors, like agriculture. Therefore, their negative effects were mitigated by the expansion of industries at the frontier of technological innovation. Moreover, the interwar years offer further nuance – the Smoot-Hawley tariffs of the 1930s had relatively limited direct effects on US growth, mainly because trade accounted for just 5% of the economy.

But today’s tariffs are unlikely to replicate the positive effects seen in the 19th century. Instead, they risk creating the same inefficiencies observed in the course of the 20th century, by diverting resources from high-productivity sectors to lower-productivity ones. This contractionary effect could lead to persistently lower global growth rates. In fact, the abolition of trade barriers within the EU and the international efforts towards lower trade barriers in the second half of the 20th century were a direct response to the economic and political impact of protectionism,^[25] which had played a key role in worsening and prolonging the Great Depression^[26] and had contributed to the formation of competing blocs in the run-up to the Second World War.^[27]

The second long-term shift driven by fragmentation might be the gradual transition from a US-dominated, global system to a more multipolar one, where multiple currencies compete for reserve status. For example, if the long-term implications of higher tariffs materialise, notably in the form of higher inflation, slower growth and higher US debt, this could undermine confidence in the US dollar’s dominant role in international trade and finance.^[28] Combined with a further disengagement from global geopolitical affairs and military alliances, this could, over time, undermine the “exorbitant privilege” enjoyed by the United States, resulting in higher interest rates domestically.^[29]

Moreover, as alternative payment systems gain traction, regional currencies may start to emerge as reserves within their respective blocs. This could be accompanied by the rise of competing payment systems, further fragmenting global financial flows and international trade. Such shifts would increase transaction costs and erode the capacity of countries to share risks on a global scale, making the world economy more fragmented and less efficient.

The central bank’s role in a fragmented world

So, as these tectonic shifts reshape the global economic landscape, central banks must adapt their approaches while remaining steadfast in their core mandates. The challenges posed by fragmentation require a delicate balance between confronting new realities and working to preserve the benefits of an integrated global economy. In order to navigate the present age of fragmentation, it is necessary to take action in four key areas.

First, central banks must focus on understanding and monitoring fragmentation. Traditional macroeconomic models often assume seamless global integration and may not fully capture the dynamics of a fragmenting world. Enhanced analytical frameworks that incorporate geopolitical factors and how businesses adjust to these risks will be essential for accurate forecasting and effective policy formulation. The Eurosystem is reflecting on these issues.

Second, monetary policy must adapt to the new nature of supply shocks generated by fragmentation. The effects of the greater frequency, size and more persistent nature of fragmentation-induced shocks and their incidence on prices require a careful calibration of our monetary responses. In this respect, our communication needs to acknowledge the uncertainty and trade-offs we face while giving a clear sense of how we will react depending on the incoming data. This can be done by making use of scenario analysis and providing clarity about our reaction function, as emphasised recently by President Lagarde.^[30]

Third, instead of building walls, we must forge unity. Even as political winds shift, central banks should strengthen international cooperation where possible. Through forums such as those provided by the BIS and the Financial Stability Board, we can keep open channels of cooperation that transcend borders. Our work on cross-border payments stands as proof of this commitment in line with the G20 Roadmap^[31]. The ECB is pioneering a cross-currency settlement service through TARGET Instant Payment Settlement (TIPS) – initially linking the euro, the Swedish krona and the Danish krone. We are exploring connections between TIPS and other fast-payment systems globally, both bilaterally and on the basis of a multilateral network such as the BIS’ Project Nexus.^[32]

And fourth, central banks must enhance their capacity to address financial stability risks arising from fragmentation. The potential for sudden stops in capital flows, payment disruptions and volatility in currency markets requires robust contingency planning and crisis management frameworks. Global financial interlinkages and spillovers highlight the importance of preserving and further reinforcing the global financial safety net so that we can swiftly and effectively address financial stress, which is more likely to emerge in a fragmenting world.^[33]

In fact, the lesson from the 1930s is that international coordination is key to avoiding protectionist snowball effects, where tit-for-tat trade barriers multiply as each country seeks to direct spending to merchandise produced at home rather than abroad.^[34] In order to avoid this, the G20 countries committed to preserving open trade could call an international trade conference to avoid beggar-thy-neighbour policies^[35] and instead agree on other measures, such as macroeconomic policies that can support the global economy in this period of uncertainty and contribute to reduce global imbalances.

Let me finally emphasise that the current situation also has important implications for the euro area. If the EU upholds its status as a reliable partner that defends trade openness, investor protection, the rule of law and central bank independence, the euro has the potential to play the role of a global public good. This requires a deep, trusted market for internationally accepted euro debt securities. That is why policy efforts to integrate and deepen European capital markets must go hand in hand with efforts to issue European safe assets.^[36]

Conclusion

Let me conclude.

As we stand at this crossroads of global fragmentation, we must confront an uncomfortable truth: we are drifting toward a fractured economic and financial landscape where trust is eroded and alliances are strained.

Central banks now face a double challenge: to be an anchor of stability in turbulent economic waters while reimagining their role in a world where multiple economic blocs are forming. The question is not whether we adapt, but how we mitigate the costs of fragmentation without sacrificing the potential of global integration.

Our greatest risk lies not in the shocks we anticipate, but in the alliances we neglect, the innovations we overlook and the common ground we fail to find. The future of global prosperity hinges on our ability to use fragmentation as a catalyst to reinvent the common good.

MIL OSI Economics –

April 29, 2025
MIL-OSI United Nations: Madagascar: Improving Infrastructure Resilience to Reduce Climate-Related Economic Losses
Source: UNISDR Disaster Risk Reduction

Madagascar: Improving Infrastructure Resilience to Reduce Climate-Related Economic Losses

(In collaboration with UNDRR and CDRI)

One of the world’s largest islands, located in the tropical south-west Indian Ocean, Madagascar needs new roads, schools, electricity networks, and more to lift large portions of its 30 million population out of poverty. But even as it builds this new infrastructure, its progress remains fragile. Tropical cyclones and other extreme hazard events can wipe out these development gains, and climate change multiplies that threat.

Four cyclones

in 2022 affected or displaced half a million people and flooded over 200 000 hectares of agricultural lands.

Nation-wide impact:

50,000 homes destroyed
10,000 classrooms wrecked
40 roads blocked

The damage

was equal to almost 5% of Madagascar’s GDP, increasing the poverty rate of affected households by 27%.

The challenge is significant. Madagascar is the world’s fourth largest island, and its relatively small population is spread out, much of it in rural hard-to-access areas. Most villages are isolated and they lack access to decent roads, drinking water or electricity, preventing sustainable development and poverty reduction too. Rapid population growth increases the pressure to build new infrastructure fast, but Madagascar must also find new ways to protect its transport networks, energy supplies, water supplies, and more from the growing threat of climate change.

Building resilience into infrastructure will bring significant benefits. Madagascar’s infrastructure currently suffers damage worth roughly USD 100 million each year. Cyclones account for 85 percent of this damage and are expected to increase with climate change.

With that in mind, Madagascar has become one of four countries – together with Bhutan, Chile, and Tonga – to pioneer the Global Methodology for Infrastructure Resilience Review. Developed by the UN Office for Disaster Risk Reduction (UNDRR) and the Coalition for Disaster Resilient Infrastructure (CDRI), the methodology helps countries to identify and prioritize strategies that will make their infrastructure more resilient through a five-step approach.
1

Stakeholder mapping
Key ministries, regulators and operators in infrastructure development

Cross-sector coordination mechanisms
Review of existing policies and regulations
Policies and regulations shaping infrastructure resilience

Integration of disaster risks in national plans and strategies
Identification of vulnerabilities (Stress Testing)
Data collection on hazards and vulnerabilities

Multi-hazard resilience testing of infrastructure systems
Principles for resilient infrastructure
Infrastructure resilience assessment using the UNDRR Resilience Principles

Identification of resilience-building interventions
Development of an Implementation plan
Results validation and prioritization

Implementation plan with assigned responsibilities
The roadmap for infrastructure resilience in Madagascar is a key strategic document, as it outlines a comprehensive action plan aimed at minimising disaster risks in the country,” he adds.

Advancing Infrastructure Resilience in Madagascar
Developing the plan

Developing the plan

The methodology follows five steps: Map institutional governance and identify key stakeholders; Review existing policies and regulations; Detect vulnerabilities through a stress-testing analysis; Assess current resilience through the Principles of Resilient Infrastructure; then Develop an implementation plan and produce a final report.

As part of that process, Madagascar hosted multiple workshops, that were accompanied by an assessment of institutions and regulations, analysis of sector-specific risks, and an evaluation of current practices too.

Countries need access to forward-looking information and for infrastructure systems, this means assessing the risks of interconnected infrastructure systems. The final “Roadmap for Infrastructure Resilience in Madagascar” identified nearly 50 measures to enhance the country’s infrastructure resilience.

The process integrates and complements work by Madagascar’s Cellule de Prévention et d’appui à la Gestion des Urgences (CPGU) to improve construction standards against cyclones, floods, and other hazards. It also brought in a wider range of stakeholders from the disaster risk, climate change, construction and planning, and investment sectors.

[embedded content]

“With this new way of looking by zooming out, we have more of an overall vision of everything that makes infrastructure vulnerable,” Randrianandrasana Lila Norolalaina, Head of Disaster Risk Reduction at the Ministry of Education, says.

Together, these stakeholders looked at six specific sectors – transport, energy, water, telecommunications, health and education – analyzing them against ten key hazards. Cyclones account for most of Madagascar’s recorded losses, but floods, rising sea levels, variations in rainfall patterns, and heatwaves also have an impact.

Cascading disasters were central to the analysis, since a failure in one infrastructure sector can spread to others. Electricity failure impacts communication, transportation, and water supply systems, for example. And pumping equipment loses power and is unable to keep floodwaters under control around the capital Antananarivo, then an electricity failure would lead to other disasters, for example. Understanding these interdependencies helps to prevent a chain of failures and thus much bigger crises.

The UNDRR stress testing tool simulated various scenarios and assessed the potential impact on different sectors. It helped decision-makers to understand their vulnerabilities and to analyse the possibilities for cascading disasters. Finally, it concluded that telecommunications and energy were the sectors most likely to trigger further failures, while wastewater management was the most vulnerable to disruptions from elsewhere.

Interdependencies of Functions and Cascading Effects

Energy

Energy

Discussed within the context of resilient infrastructure, energy is also vital for Madagascar’s human development. It is, however, in short supply throughout the country and this shortage prevents the country from industrialising its key sectors, especially farming. Some 80 percent of the workforce is involved with subsistence farming, for example, while failure to industrialise prevents the creation of higher paying jobs. The lack of energy also slows the modernisation of Madagascar’s young mining sector, a major contributor to GDP, through exports of nickel, cobalt, chromium, titanium, and heavy metals.

Madagascar aims to connect 70 percent of its population to electricity by 2030, from just 15 percent at present. For those who are connected, however, power cuts and voltage fluctuations are frequent, causing serious disruptions to daily life and economic development alike. The issue is often acute in rural areas, where just 5 percent of the population is connected.

Stress-testing analysis, Energy

Inadequate maintenance is part of the problem, but cyclones, heavy rains, landslides, and strong winds all lead to widespread interruptions and power outages. Two of six power stations are vulnerable to rising water levels, while earthquakes and cyber-attacks can also damage production. Droughts and fires threaten serious impacts to water supplies. They can therefore limit the production of electricity from hydropower, which accounts for 31 percent of Madagascar’s energy.

Resilience is a vital priority. Part of Madagascar’s resilience plan is to move away from imported fossil fuels towards renewables. Oil and coal, for example, account for 49 and 19 percent respectively of the island’s energy production, but they depend heavily on Madagascar’s transport, which is also vulnerable to storms. Madagascar wants renewables to account for 80 percent of its energy production by 2030, up from 33 percent at present.

Even before the review of infrastructure resilience, Madagascar had already begun to improve its energy infrastructure, through its 2015-2030 New Energy Policy (NPE). One key element of NPE is to integrate disaster risk management into the energy sector. In case of emergency, Madagascar has also developed a contingency plan to ensure continuity of essential services. With support from the World Bank, Madagascar is enhancing its energy sector management and improving service quality.

[embedded content]

Despite these initiatives, the infrastructure resilience review highlighted the continued need for Madagascar to strengthen the resilience of its energy infrastructure. While limited finances, insufficient institutional capacity, and lack of maintenance create significant barriers, which all compromise the energy sector’s ability to resist new shocks and crises, the Roadmap includes multiple opportunities to improve its resilience.

These opportunities mainly link to information and data. Stakeholders discussed the need to strengthen and update data for monitoring and evaluation, as well as to request information and disaster risk best practices from private operators in the sector. By mapping the state of energy infrastructure, including an assessment of vulnerability and resilience levels, Madagascar will be better placed to prioritise its interventions.

Following the Global Methodology for Infrastructure Resilience Review, therefore, Madagascar has already begun to work with other partners. The Global Risk Modelling Alliance (GRMA), for example, is working with Madagascar to improve their data through better hazard modelling.

“When we know the state of all our assets, then we will be better able to ensure proper maintenance, keep track of the hotspots, and manage all the gaps.”

Transport

Transport

Made up of four sub-sectors – air, sea, road, and rail – Madagascar’s transport illustrates the country’s challenges effectively too. Even without the natural hazards, Madagascar’s transport networks are limited. To the south, for example, one single trainline connects a region of roughly 100,000 people to the rest of the country. Also in the South, covering 500km by road can take three days.

With limited internal roads and railways, Madagascar uses its air network to connect different parts of the vast country, especially in the rainy season or when humanitarian aid is needed urgently. Its ports are also vital for the country’s economy, exporting vanilla and other agricultural products, together with minerals and seafood products.

Much of this infrastructure is, however, vulnerable to disasters, such as cyclones, cyber-attacks, fire hazards, and even pandemics. Cyclones, landslides, and flooding routinely damage roads and – in the wake of Cyclone Gamane in March 2024 – reconstruction of road infrastructure was set to cost USD 76 million.

International financial institutions, such as the World Bank and European Investment Bank, support Madagascar to recover from cyclone damage and to make their transport infrastructure more resilient. The Japan International Cooperation Agency (JICA) is supporting the USD 640 million expansion of Toamasina port, the gateway for about 75 percent of Madagascar’s international freight, while the African Development Bank (AfDB) is also considering rehabilitation of the port at Manakara.

Policies on rigorous maintenance, disaster planning, and construction or rehabilitation of new infrastructure, such as Ivato International Airport, will also help Madagascar to strengthen its infrastructure resilience.

Stress-testing analysis, Transportation

However, the Infrastructure Resilience Review brought new insights, enabling Madagascar to prioritise its interventions. Data analysis identified:

5 airports

vulnerable to flooding of up to 3.5 metres

9 of 57

ports vulnerable

16,292 km

roads at risk of landslides

Stakeholders discussed the need to improve regulations and institutions alike, including by incorporating resilience principles. More work is needed on climate adaptation, while Madagascar would also benefit from better engagement with financial institutions and the insurance sector too. Better coordination would improve national adaptation plans and coastal area management.

Stakeholders also discussed the need for more data analysis, preventive maintenance, capacity building, and emergency planning, as well as the need to involve the private sector and facilitate more competition.

One key topic was the importance of resilience norms, especially in the transport sector. How does Madagascar develop these and then ensure compliance? These norms – and stakeholder compliance – are essential in reducing the amount of substandard construction, a major boost for resilience.

“Raising awareness about the importance of norms is an important moment,” Ventsolalaina Ramilison, Head of Disaster Risk Reduction Department at CPGU / Madagascar said. “Now there is just the question of creating and strengthening a monitoring authority.”

Lessons for other countries

Lessons for other countries

The Infrastructure Resilience Review represents an important step forward by Madagascar towards infrastructure resilience. Stakeholders hope it will also benefit donors and provide key lessons for other countries.

“Given that donors tend to pay the costs of reconstruction following a disaster in Madagascar, they also benefit when Madagascar reduces the extent and cost of those disasters,” Ventsolalaina Ramilison, Head of Disaster Risk Reduction Department at CPGU / Madagascar says.

“When we can prevent storms from destroying our water supply infrastructure every year, then we can begin to build more sustainably,” she said. “That gives us hope, because we want to escape these endless cycles of recovery.”

Resilient infrastructure is important because it enables and protects sustainable development. All too often, ferocious storms have destroyed donor-financed infrastructure, which means – in other words – that insufficient resilience puts development progress at risk.
Download the full report:
Roadmap for Infrastructure Resilience in Madagascar

MIL OSI United Nations News –
April 29, 2025
MIL-OSI United Nations: Bhutan: Protecting hydropower and water from climate and other risks

Source: UNISDR Disaster Risk Reduction

Building energy resilience

Water also plays a vital role in Bhutan’s hydropower sector, which serves as the backbone of both its energy generation and exports.

Some 70%

of the energy generated is exported to India.

Hydropower revenues

account for about 25% of the total government revenue.

Offsetting Bhutan’s

balance of payments with India and accounting for roughly 7.5% of Bhutan’s GDP.

Indeed, Bhutan’s human and economic development is closely tied to the growth of its hydropower. Some 99.7 percent of households have access to electricity, which is also essential for hospitals, schools, and communication networks. Besides supporting domestic sectors, hydropower also enables industrial growth.

But Bhutan’s hydropower sector faces increasing risks linked to the growing challenges to its water supply. Climate change is expected to exacerbate challenges such as droughts, glacial lake outburst floods (GLOFs), heavy rainfall, and flash floods. Additionally, Bhutan’s seismic activity makes hydropower assets vulnerable to loss and damage.

The country’s electricity transmission and distribution network is also at risk from geological events like earthquakes and landslides, as well as from fires and flash floods. At the same time, this network itself is a potential fire hazard, which could endanger surrounding infrastructure, settlements and forests.

The Assessment identified several resilience measures, including some which are already well-advanced and which reflect a proactive approach to risk reduction. Bhutan is exploring investments into reservoirs and pumped storage projects, for example, to increase its water storage capacity.
However, the Assessment also highlighted several areas for improvement. It noted gaps in grid stability, real-time monitoring, and the ability to respond quickly to transmission and distribution outages. To address these challenges, the assessment recommended upgrades to safety standards and the introduction of mandatory risk reporting as a regulatory requirement for electricity transmission and distribution. Establishing feedback loops and mechanisms will also help to improve the network’s resilience.

MIL OSI United Nations News –

April 29, 2025
MIL-OSI United Nations: Chile: Strengthening infrastructure resilience to face new and emerging hazards
Source: UNISDR Disaster Risk Reduction

Chile: Strengthening infrastructure resilience to face existing and emerging hazards

(In collaboration with UNDRR and CDRI)

Stretching along Latin America’s Pacific coast from tropics in the north to freezing micro-climates in the south, Chile faces an array of natural hazards. Home to 20 million people, its location in the Ring of Fire and proximity to major tectonic plates exposes Chile to earthquakes and volcanic activity.

February 2010

a magnitude 8.8 earthquake and subsequent tsunami collapsed buildings, bridges, and highways.

75% of the population

was affected and the damage cost roughly USD 30 billion, or about 18 percent of Chile’s GNP.

stated that the annual average loss for Chile is USD 5.4 billion

A high-income country recognized for its good governance, Chile has reduced many of the risks associated with earthquakes and tsunamis. However, the country must also adapt to the new and intensifying hazards related to climate.

Chile was one of the first countries, together with Bhutan, Madagascar, and Tonga, to implement the new Global Methodology for Infrastructure Resilience Review. Developed by the UN Office for Disaster Risk Reduction (UNDRR) and the Coalition for Disaster Resilient Infrastructure (CDRI) the methodology helps countries to identify and prioritise the strategies that will build their infrastructure resilience through a five-step approach:
1

Stakeholder mapping
Key ministries, regulators and operators in infrastructure development

Cross-sector coordination mechanisms
Review of existing policies and regulations
Policies and regulations shaping infrastructure resilience

Integration of disaster risks in national plans and strategies
Identification of vulnerabilities (Stress Testing)
Data collection on hazards and vulnerabilities

Multi-hazard resilience testing of infrastructure systems
Principles for resilient infrastructure
Infrastructure resilience assessment using the UNDRR Resilience Principles

Identification of resilience-building interventions
Development of an Implementation plan
Results validation and prioritization

Implementation plan with assigned responsibilities
“With that in mind, we need to bring together a greater number of stakeholders to identify the vulnerabilities of our infrastructure systems and propose solutions. Without a doubt, we need to explore new solutions that involve more stakeholders in the system” she added.

Advancing Infrastructure Resilience in Chile
Early start

Early start

Within the disaster risk community, Chile stands out for its proactive approach to disaster risk. While saving lives is the top priority, the motivations are also economic. Between 2000 and 2019, damage to infrastructure accounted for 53 percent of all economic losses from disasters in the Latin American and Caribbean region. By enhancing its infrastructure resilience, Chile also protects its economy.

Chile had already begun its search for new solutions to its disaster risk by the time Chile engaged with UNDRR and CDRI. In 2021, Chile replaced its National Emergency Office of the Ministry of the Interior and Public Safety (ONEMI) with SENAPRED, a new National Disaster Prevention and Response Agency, shifting the emphasis from recovery and reconstruction to disaster prevention.

Meanwhile, Chile’s new policies are also improving the resilience of Chilean infrastructure. New infrastructure projects require a disaster risk analysis, for example. Also, Chile’s 2022 Law on Climate Change (LMCC) requires sectoral, regional, and municipal authorities to reduce greenhouse gas emissions and promote resilience to climate change. Such laws complement SENAPRED’s focus on disasters by focusing on hazards that can be slower to develop, such as water scarcity and desertification.

The implementation of these laws cannot come soon enough. Only a year after the LMCC was passed, climate change already began showing its impact. In 2023, a 14-year megadrought strained Chile’s freshwater reserves to breaking point.

Followed by several days of persistent rainfall and flooding, the overwhelmed and parched landscapes resulted in a rapid runoff and flooding. Some 22,000 people were affected by the rains, the heaviest in 30 years, while swollen rivers blocked roads and left thousands of people isolated or in shelters. This event only highlighted the need to build resilience against multiple hazards that Chile has had.

The process

The process

The Global Methodology for Infrastructure Resilience Review builds on UNDRR’s six Principles for Resilient Infrastructure, which set out the key conditions for sustainable infrastructure resilience. In doing so, the principles support the Sendai Framework for Disaster Risk Reduction and Sustainable Development Goals, as well as the G20 Principles for Investing in Quality Infrastructure.

However, each country needs its own paths to infrastructure resilience, which is why the Global Methodology for Infrastructure Resilience Review is important. It provides a structured approach for every country to review and enhance their infrastructure governance, identifying the opportunities to create resilience across government levels.

Chile implemented the methodology’s five steps at the national level from June 2023 to May 2024. A deep dive was then completed for the Biobío region in December 2024, adapting the Global Methodology to the regional level. The analysis focused on six sectors – water, energy, transportation, telecommunications, health and education.

The government was well represented throughout the process, bringing together stakeholders from the ministries of public works (MOP), transport and telecommunications (MTT), energy (MINEN), education (MINEDUC), health (MINSAL), social development (MIDESO), housing and urban planning (MINVU), international relations (MINREL), finance, defence, and environment (MMA).

While this broad representation in the assessment and workshops created a truly multi-stakeholder approach, the Chile pilot also looked at the role of the private sector, which manages a large portion of the country’s infrastructure. This raised questions in terms of coordination, information asymmetries, and the incentives for private companies to invest in disaster risk reduction. When a private company is managing public assets, for example, how can incentives be aligned so that the private company puts the public interest before its desire for profit?

Recognising drought

Recognising drought

Stakeholders highlighted discussions of risk as a major strength, noting that the stress testing allowed for a broader assessment of existing infrastructure vulnerabilities, including pandemics and cyber risks. While other threats—such as violence, sea level rise, atmospheric pollution, invasive exotic species, and diseases—were considered, they were ultimately excluded from further analysis due to their limited impact on infrastructure.

Prioritization of Threats in Chile

Click to download the Prioritization of Threats in Chile table in PDF

Drawing from data analysis and workshop discussions, participants ranked the greatest threats to Chilean infrastructure in the following order: drought, fires, floods, landslides, earthquakes, tsunamis, heat waves, tidal waves, and volcanic eruptions.

Drought and water scarcity emerged as a priority because of their interdependent nature and potential cascading impacts on infrastructure systems. Around 53 percent of Chile’s territory is considered at high risk of drought, and 23 percent is at high risk of desertification. The central areas of Chile have experienced a nearly continuous megadrought since 2010.

“The application of the global methdology allowed us to break new ground by conducting a hazard analysis in Chile specifically targeted to infrastructure, consolidating a systemic view and adding new elements that had previously gone unnoticed, such as droughts,” stated Luis Doñas, Project Coordinator, SENAPRED

“Chile must now analyse these factors more closely to generate appropriate investment and make progress on key issues identified by stakeholders: territorial application, unification of information systems, strengthening intersectoral resilience training, and more decisive private sector involvement,” add Doñas

[embedded content]

Protecting water

Protecting water

Throughout the assessment, stakeholders distinguished between their infrastructure’s direct economic value and its critical functions. They also examined vulnerabilities, highlighting how the frequency and impact of different hazards can vary significantly between the regions.

Beyond these individual risks, the discussions also explored interdependencies between sectors and the potential for cascading failures. One key example is the relationship between water and energy in Chile.

After more than a decade of mega-drought, water supply companies have implemented contingency measures to limit the impacts in urban areas. However, the sustained dry conditions have seriously affected drinking water, irrigation, and other vital needs in rural areas. The proposed infrastructure assessment integrates advanced technology – such as desalination plants – with ongoing training and public education. Through a combination of short-, medium-, and long-term actions, the plan aims to enhance the resilience and sustainability of Chile’s water resources.

Water supply is not an isolated system, of course. It relies on other critical infrastructure, such as energy and transportation. Energy, in particular, is a priority as every other sector depends on it. A failure in the energy sector could trigger widespread cascading effects. To protect its energy infrastructure, Chile’s plan promotes advanced technologies and renewable energy solutions, reducing dependence on fossil fuels and strengthening long-term resilience.

[embedded content]

Chile’s water infrastructure does not have a massive economic value per se, but a sustainable water supply is vital for the health and welfare of Chile’s population. However, this supply depends heavily on other key infrastructure systems (such as energy or transportation) as well as surface and underground sources. These latter make it very vulnerable to interruptions such as drought.

Next steps

Next steps

The process initiated in Chile concluded with establishing a Roadmap for Infrastructure Resilience, a strategic guide that will shape actions in this area for years to come. While the Roadmap outlines a series of proposals across six key infrastructure sectors, it also lays out a broader pathway for Chile to strengthen its infrastructure governance.

This includes better coordination, the incorporation of risk analysis into infrastructure planning and investment, better compliance, and more available and accessible risk data, including interactive platforms and information exchanges. In other words, Chile is committed to building more resilience into its infrastructure.

With this in mind, Chile has come up with three immediate actions.

Click to download the Immediate Intervention scheme in PDF

1.

First, the Roadmap suggests establishing an intersectoral working group so that the necessary sectors and ministries can develop shared definitions and guidelines for resilient infrastructure. This group will receive extra training from a “Resilience Academy” involving both national and international experts.

Second, recognizing the sheer variety of hazards and territorial conditions across the country, Chile launched a regional-level infrastructure assessment to deepen risk analysis and develop improvements to governance. This process began in the Biobío Region, one of Chile’s 16 regions.

2.

Roughly 40 percent of Chile’s population and 40 percent of its economic activity are concentrated in the central region, where Santiago, the capital, is located. As a result, this area has a higher density of critical infrastructure increasing the infrastructure exposure to hazards. At the same time, remote regions remain highly vulnerable, as they often lack the resources and preparedness to withstand disasters effectively.

Each territory has its own unique needs, making it essential to tailor disaster risk reduction to local context.

Distribution of hazards in micro-zones over the period 2000-2023

3.

Third, Chile will design and pilot an integrated data hub to consolidate risk-related information, enabling better monitoring, evaluation, and decision-making in risk management. The integrated data centre will serve as a unified system for tracking, reporting, and verifying the fragmented infrastructure resilience assessments and diagnostics currently dispersed across different sectors and agencies. By centralising this information, Chile will strengthen infrastructure planning and enhance its disaster risk reduction.

Implementing these and other measures will also move Chile towards a more resilient infrastructure, aligning with UNDRR’s principles for resilient infrastructure. This will better position the country to tackle current challenges, but also to enhance its ability to adapt to new and emerging hazards.

Collaboration will be key to success. Achieving resilience will require continued collaboration between government, business, and civil society. By enabling new analyses and multi-stakeholder workshops, the Global Methodology for Infrastructure Resilience Review has played a crucial role in fostering vital trust between the different stakeholders.

“The infrastructure resilience review process achieved excellent work by bringing together different partners, and we now undoubtedly have a space for collective responsibility to strengthen our infrastructure ecosystem from a disaster risk perspective,” said Alicia Cebrián, National Director of SENAPRED
Download the full report:
Roadmap for Infrastructure Resilience in the Republic of Chile

MIL OSI United Nations News –
April 29, 2025
MIL-OSI United Nations: Tonga: Building infrastructure resilience in an isolated, hazardous world
Source: UNISDR Disaster Risk Reduction

Tonga: Building infrastructure resilience in an isolated, hazardous world

(In collaboration with UNDRR and CDRI)

When an underwater volcano erupted about 65 kilometres north of Tonga’s main island, Tongatapu, in January 2022, it sent ash high into the atmosphere and triggered a tsunami that struck the archipelago nation with waves as high as 15 metres. While the waves killed four people directly in Tonga, the eruption and consequent tsunami smashed into residential and non-residential buildings alike, damaged other infrastructure such as submarine cables, and contaminated water supplies with ashfall.

Tonga

is one of the most disaster-prone countries in the world.

85,000 people

in Tonga affected by the 2022 volcano eruption.

The event also highlighted how Tonga must quickly build more resilience into its infrastructure and economy if it wants to improve the quality of life for its roughly 100,000 population.

The country is a lower-middle income nation, constrained by its geographic isolation, small market size, and high cost of basic services. A Pacific archipelago of 172 islands, whose nearest neighbours – Fiji and Samoa – are more than 700 kilometres away, Tonga is highly dependent on climate sensitive-sectors such as agriculture, fisheries, and tourism. Its economy is sensitive to external shocks.

Cyclones, tsunamis, and volcanoes cause serious damage every time they hit Tonga, and yet – in recent years – the Pacific nation has experienced more extreme weather events than usual. Cyclone Gita, a category 4 tropical cyclone which hit Tonga in February 2018, was one of the most powerful storms to hit Tonga in decades, killing two, destroying at least 171 homes, and damaging more than 1,100 others.

This immense vulnerability to multiple natural hazards – and the dangers of cascading impacts – led Tonga to become one of four countries – together with Bhutan, Chile, and Madagascar – pioneering the Global Methodology for Infrastructure Resilience Review. Developed by the UN Office for Disaster Risk Reduction (UNDRR) and the Coalition for Disaster Resilient Infrastructure (CDRI), the methodology helps countries to identify and prioritise the strategies that will build their infrastructure resilience through a five-step approach.

[embedded content]
1

Stakeholder mapping
Key ministries, regulators and operators in infrastructure development

Cross-sector coordination mechanisms
Review of existing policies and regulations
Policies and regulations shaping infrastructure resilience

Integration of disaster risks in national plans and strategies
Identification of vulnerabilities (Stress Testing)
Data collection on hazards and vulnerabilities

Multi-hazard resilience testing of infrastructure systems
Principles for resilient infrastructure
Infrastructure resilience assessment using the UNDRR Resilience Principles

Identification of resilience-building interventions
Development of an Implementation plan
Results validation and prioritization

Implementation plan with assigned responsibilities
“The infrastructure resilience review process is already helping us to do that,” he said.

Advancing Infrastructure Resilience in Tonga
The process

The process

In 2021, Tonga enacted the Disaster Risk Management (DRM) 2021 Act, replacing the Emergency Management Act 2007, signaling a new ambition to manage risk instead of reacting to disaster.

After the 2022 volcano eruption, it also connected quickly with international partners. With World Bank support, it upgraded its ports, roads, and an airport, making them more resilient to storm surges, floods, and high winds. The Asian Development Bank has also helped with grants to help the country recover from disasters and health emergencies, including the COVID-19 pandemic.

The infrastructure resilience assessment approach in the Global Methodology, provided Tonga with the opportunity to take a holistic look at their infrastructure and risk, identify the gaps, and then fill them.

Stress-testing of Critical Infrastructure against Identified Hazard, Tonga

In the first phase, a technical working group was set up with representatives from 21 departments and agencies across six ministries. Supported by this working group, the review process began with a kick-off meeting that included key stakeholders for infrastructure development, disaster risk reduction, and sectoral operations. Next, in phase two, it reviewed existing policies and regulations, assessing the extent to which they address disaster risks and support infrastructure resilience.

In the third phase, stakeholders conducted stress tests and gap analysis on ten critical infrastructure functions against a range of hazards, including cyclones, droughts, underground water / seawater intrusion, tsunamis, volcanic eruptions, non-communicable diseases, land degradation and erosion, floods, sea level rises, and cybersecurity breaches. By identifying these vulnerabilities, interdependences, and cascading risks, the participants were able to seriously consider the economic impacts and interdependences of different hazards throughout.

Fourth, Tonga’s current resilient infrastructure practices were assessed against the UNDRR Principles for Resilient Infrastructure. These six principles set out the key conditions for sustainable infrastructure resilience. They support the Sendai Framework for Disaster Risk Reduction and Sustainable Development Goals, as well as the G20 Principles for Investing in Quality Infrastructure.

Finally, stakeholders drafted an implementation plan, consolidating the findings and providing a road map for enhancing infrastructure resilience.

“By prioritising resilience, the country can support sustainable economic growth, adapt to climate change, and protect communities, while minimising economic and human losses.”

Water sector

Water sector

One of the sectors examined was the water sector, including a deep dive analysis. Water is everywhere in a small island development state (SIDS) like Tonga, of course, but securing a stable supply remains difficult. Water in Tonga comes from ground water and rainwater, which are both vulnerable to impacts from climate change.

Rising sea-levels mean that many assets are at risk of flooding, while soil erosion is also a threat. When sea levels rise, salt water can enter some freshwater supplies, reducing the available water for drinking.

Funding the necessary upgrades, however, is a challenge. The Tonga Water Board (TWB) operates without subsidies, making capital investment difficult.

Meanwhile, the lack of a centralised infrastructure database complicates the assessment and management of existing resources. Multiple institutions manage water resources across the archipelago’s 45 or so inhabited islands, doing so with varying levels of expertise. While integrated planning and coordination should be essential for efficiency, the system is fragmented. Integrated planning and management are urgently needed to ensure resilience in the water sector. Equally as importantly, there’s a need for more data and information, and for a better understanding of how to use the already available data, which does not capture all boreholes and rainwater harvesting.

[embedded content]

Challenges are even greater on the outer islands. Most villages lack a formalised tariff system, complicating the collection of revenue for repairs and maintenance. Composed of local residents, Village Water Committees (VWCs) play a crucial role, but they often lack financial and other supporting skills. Without structured regulations and trained personnel, infrastructure upkeep is inconsistent.

“But at the same time, it takes four or five hours by boat to reach some of these communities,” he said. “It is not an easy job.” The support system for water infrastructure needs to be planned, designed, and monitored more effectively to become more resilient to hazards, which is an area of need for VWC.

Finally, the water pumping stations are dependent on electricity. This means that if a cyclone damages the power lines and impacts electricity supply, then water supply would also be affected. The disaster responses are complicated by limited standard operating procedures (SOPs) as cyclones, volcanoes, and tsunamis all affect the water infrastructure in different ways. Take a look at how some of the most recent events have affected Tonga’s water infrastructure:

Hazard-related disruptions in Tonga’s water sector

TROPICAL CYCLONES:

Cyclone Gita (2018) damaged water distribution systems and rainwater tanks, while other cyclones have led to extensive system failures.

VOLCANIC ERUPTIONS AND ASHFALL:

The 2022 eruption of Hunga Tonga-Hunga Ha’apai severely impacted water punps and contaminated rainwater tanks, leading to supply disruptions.

DROUGHTS:

Prolonged droughts in 2023 have affected rainwater collection systems, exacerbating water shortages.

TSUNAMIS:

The 2022 tsunami contamined groundwater sources in southern islands and destroyed coastal water infrastructure.

Several resilience measures do exist. Desalination units provide emergency water, even if their maintenance or repairs sometimes fall on untrained community members, causing delays and potential safety issues. Overall, however, these are uneven and insufficient.

Some development support has been provided, but the projects are also unevenly distributed. They tend to focus mostly on the main island, leaving outer islands underserved.

From the Infrastructure Resilience Review, several recommendations emerged:

Build Village Water Committee capacity by developing management manuals, training, and emergency water plans for climate and disaster events.

Establish standard procedures for Village Water Committees to capture and share water data, linking it into a centralised system. Procure and distribute the necessary hardware, then train the VWCs in its use.

Set up processes to coordinate donor projects across the water sector.

Review the complete water sector for exposure to hazards, including its dependencies on other sectors such as transport, ICT and energy.

Find ways to improve the management of both rainwater and groundwater.

Improve water security on the outer islands by increasing water storage volumes, testing new solutions such as hydro panels and mobile desalination units.

Transport

Transport

The Infrastructure Resilience Review also looked at transport, given the importance and vulnerabilities of Tonga’s ports, airports, and roads.

On the one hand, Tonga’s geographic isolation makes it highly dependent on its ports and airports for imports of food, fuel, and spare parts. In 2000, the last available energy balance showed that 75 percent of the country’s energy depends on imported petroleum products. Over 98 percent of Tonga’s grid-supplied electricity is generated using imported diesel.

On the other hand, those ports and airports are highly vulnerable to disruption of the other critical infrastructure functions, including transport. The ports and airports both depend on Tonga’s roads, for example, to connect them with the rest of the country.

Multi Hazards Disaster Risk Assessment, ARUP 2021

However, while Tonga’s climate is already tropical, climate change is expected to bring heavier and more frequent rainfall, damaging roads in the low-lying areas. Inadequate drainage will compound this damage, disrupting transport and mobility to the ports and airports.

In turn, this could also disrupt Tonga’s electricity, which relies heavily on diesel imports, as well as the delivery of clean water to remote areas or even – in case of emergencies – access to evacuation centres.

The Roadmap for Infrastructure Resilience has multiple recommendations for improving road transport resilience, including the following:

Improve data on infrastructure quality to understand better which rural and urban roads are exposed to flooding.

Produce geohazard maps to enable monitoring of infrastructure resilience and vulnerability.

Develop mitigation measures based on assessments of the road quality.

Integrate climate safety factors into road design.

Additionally, the Roadmap for Infrastructure Resilience in the Kingdom of Tonga makes specific priority recommendations for individual sectors, including the development of a national resilient critical infrastructure strategy, the establishment of a critical infrastructure working group, and the establishment of a central disaster data centre.

“The infrastructure resilience review reminds us that we are not passive actors, but that to a much greater extent we are masters of our own destiny,” said Sione Pulotu ‘Akau’ola, CEO for Ministry of MEIDECC.

“In the long run, building resilience into our infrastructure will save us lives, destruction, and economic damage,” he said.
Download the full report:
Roadmap for Infrastructure Resilience in the Kingdom of Tonga

MIL OSI United Nations News –
April 29, 2025
MIL-OSI Russia: “Passing on the Memory of the Feat”: HSE Hosts Conference in Honor of the 80th Anniversary of Victory

Translation. Region: Russian Federal

Source: State University Higher School of Economics – State University Higher School of Economics –

© Higher School of Economics

On April 25, the International Student Military-Patriotic Conference was held at the HSE Cultural Center “The Great Victory is 80 years old”. Russian and foreign students, students Lyceum of the National Research University Higher School of Economics and partner schools, teachers and university administrators. The key role in the preparation of the conference was played by Military Training Center of the National Research University Higher School of Economics under the leadership of Hero of Russia Colonel Vladimir Korgutov.

In the hall of the first floor of the Center of Culture, there was an exhibition called “Weapons of Victory”. Students dressed in military uniforms from the Great Patriotic War demonstrated rare rifles, machine guns, grenades, helmets, and even a cavalry saber to guests.

Levitan’s voice was heard from the speakers, announcing the signing of the act of unconditional surrender of Germany on May 8, 1945. And in the halls of the second and third floors, students danced to the song “Our Cossacks are Riding, Riding Through Berlin.” There was an exhibition of student paintings on military themes, as well as an exhibition “Coal of Victory” – images of the heroes of the SVO.

At one of the stands, anyone could receive a collection of the best competition works by HSE students for the 80th anniversary of the Victory.

There was no indifference

The conference in the Great Hall began with the carrying out of the banners and the performance of the Russian Federation Anthem. Then the participants were addressed by the Vice-Rector of the National Research University Higher School of Economics Sergey Rozhkov.

He called the conference “a significant event in the life of our team,” emphasizing that it was preceded by meticulous work. The commission reviewed more than 200 student studies devoted to various pages of the Great Patriotic War, and the authors of the best of them were invited to speak.

“As the chairman of the commission, I responsibly declare that there was no indifference in these works. They are imbued with a sense of patriotism, personal pride for their relatives and friends who forged the Great Victory on the fronts of the Great Patriotic War, on the labor fronts in the rear, and everyone made their contribution to the common cause,” noted Sergei Rozhkov.

The vice-rector emphasized that 80 years separate us from 1945, but we must not forget the price we paid for the victory. “When a person stops remembering, he stops living. And we must pass on the memory of the feat that our ancestors accomplished from generation to generation so that we could study and work in peace,” he said.

After this, a minute of silence was declared.

The Truth About War

The introductory report was given by the HSE full professor, Major General Adam Nizhalovsky.

He recalled that, according to official data, losses in World War II amounted to 55 million people, of which 27 million were losses of the Soviet Union, that is, 14% of its population. “Think about this figure! Every seventh Soviet person died, and these are the best people of our country,” the general noted.

The report touched upon such topics as the beginning of the Great Patriotic War, the participation of European armies in it, the atrocities of the fascists, the fate of prisoners of war, and the circumstances of Germany’s capitulation. In the West, it is believed that Germany capitulated to the Allied forces on May 7 in Reims, although the USSR did not recognize this, and the signing of the real act of capitulation took place on May 8 in Karlshorst with the participation of Marshal Zhukov.

“Thus, even before the end of the war, Western countries began to falsify its results. Having begun attacks on the USSR in May 1945, they intensified them in the following years and erased the truth about that war from the consciousness of their citizens, belittling the role of the Soviet Union in the victory over fascism,” Adam Niżalowski emphasized.

In conclusion of his report, he recalled that today only a few creators of victory remain in the veteran ranks and due to their age it is difficult for them to defend what they fought for in the soldier ranks. Now this task and sacred duty falls on us – the heirs of the Great Victory.

Pain and pride

Eight student papers, selected based on the results of the competition, were presented at the conference.

In a report dedicated to the Brest Fortress, the student Faculty of Creative Industries From the Republic of Belarus, Kristina Alekseeva focused on little-known facts: that the fortress was stormed by the Austrians, that it was defended by representatives of more than 30 nationalities, that the inscriptions scratched on the walls of the casemates and the buried banners were found years later, that it was in Brest that the first burial place for Wehrmacht soldiers was created.

Students of the Military Training Center Evgeny Dolgov and Ivan Singay presented the results of a study on military training in universities during the Great Patriotic War.

Such training began already in 1941, most students managed to apply the knowledge they had acquired in practice and maintain contact with universities. Over a thousand MSU graduates were awarded, seven of them became Heroes of the Soviet Union. And, for example, among the graduates of the Moscow Institute of Transport Engineers there were partisans who blew up enemy trains.

Family history

Student Higher School of Business Kirill Pivovarov spoke about eight heroes of the Great Patriotic War – members of his family.

Among them is his great-great-uncle Nikolai Shabrov, who volunteered for the front, was seriously wounded, recovered and was again called up to the army, commanded a platoon of the 8th Guards Panfilov Division, was personally acquainted with Marshal Zhukov, who gave him his accordion. And Kirill’s great-great-grandfather Sergei Kraskov fought in the unit commanded by his son Viktor, and they served together until the end of the war.

Student Faculty of Social Sciences Olga Avdeevich from the Republic of Belarus said that her great-great-uncle Mikhail Avdeevich became the secretary of an underground Komsomol organization in a village in Western Belarus at the beginning of the war. In 1943, he was taken into slavery to Germany, and after the liberation of East Prussia, he was drafted into the Red Army and took part in battles, was wounded, and his subsequent fate is unknown.

“My father and I are looking for Grandpa Misha, and according to one version, he died of his wounds and was buried in Poland. But the search for the burial site has now been suspended, since Poland, an unfriendly country, does not respond to our requests,” Olga explained.

Friendly countries

The conference was attended by Chinese and Mongolian students. Xiao Yanbo, student Faculty of Humanities from China, gave a report on the topic “The Great Victory in the Fates of the Peoples of China,” telling about some events of the Sino-Japanese War of 1937–1945.

“If the Bryansk forests are a symbol of the Soviet people’s resistance to fascism, then the fields and hills of Shandong, a region in eastern China, are a symbol of the Chinese people’s resilience in the face of Japanese invaders. Our countries fought together against fascism and militarism, and the actions of Chinese partisans in many ways echo the feat of their Soviet brothers,” the Chinese student noted.

One of the conclusions of his research is that the victory of the USSR in the Great Patriotic War and the decisive actions of the Red Army to defeat Japan made it possible to liberate the lands of China, opening a new page in Soviet-Chinese relations.

A student of the creative industries department, Batjargal Ganbalor from Mongolia, told how her country, despite limited resources, helped the Soviet Union during the war. They sent food, clothing, horses (every fifth horse in the Red Army was Mongolian) to the front, paid for the construction of tanks and planes – the amount of aid was equivalent to three years of the country’s budget.

An activist of the Mongolian Club of the National Research University Higher School of Economics, Tugsmandal Sergelen, spoke about her ancestors, one of whom fought against the Nazis in the ranks of the Red Army, was wounded, awarded an order and returned home, and the other, being of advanced age and possessing great authority in his country, personally donated 39 horses and almost 20 kg of silver to the needs of the front.

“I am filled with gratitude to my ancestors for their contribution to the victory. The peoples of Mongolia and the USSR have the right to celebrate this victory together,” the girl concluded.

Made your choice

The leitmotif of the conference was the thesis about the continuity of generations that stood up to defend the Motherland during the Great Patriotic War and now, during the Central Military District.

Anton Yukhnevsky, a graduate of the Military Training Center last year, told how HSE students continue the tradition of helping the front today. A month after the start of the SVO, the “White Raven” movement was created at the university. Its participants organize humanitarian actions and visiting missions in the SVO zone and in areas adjacent to the combat contact line, and hold sports and educational events at the university.

“You and I could have distanced ourselves from this, studied, had fun and spent time carefree,” Anton addressed the students. “But we made our choice long before the start of the SVO, back in childhood, thanks to our upbringing, and I am sure that it was the only right one.”

Social Sciences student Anton Nudny read his poem dedicated to a soldier who defended the Motherland in the 1940s and his grandson who followed his example 80 years later: “…And the years flew by like a moment, / and again Kharkov, again battle and smoke, / and the current soldier is of a different generation, / but his spirit is still the same – he is invincible.”

Betting on talent

The conference reports alternated with concert numbers. The hit of the day was the song “Faith in Victory”, written by the instructor of the military intelligence cycle, Colonel Evgeny Mityukov, and performed by him together with the students. Another discovery was the compositions of the vocal and instrumental ensemble created at the Military Training Center a month ago.

As explained by the head of the Military Training Center, Hero of Russia Colonel Vladimir Korgutov, the organizers decided not to invite fashionable presenters and professional musical groups, relying on the talents of teachers and students.

In closing the conference, he thanked its participants and organizers, congratulated all those present on Victory Day, and reported that the Military Training Center, which has already graduated more than 7,000 officers, sergeants, and reserve soldiers, continues to train true defenders of the Fatherland.

Patriots become

According to Vice-Rector Elena Odoevskaya, to achieve the goals set in the strategic documents of the HSE, it is necessary to have fortitude, to be able to overcome difficulties and move forward, and the conference once again showed that HSE students have these qualities. They also demonstrated unique creative abilities. “I am delighted with the vocal and instrumental ensemble,” added Elena Odoevskaya.

“Patriots are not born – they become them, including thanks to correctly presented and emotionally colored information. The conference was filled with such information about the Great Patriotic War, about the contribution of our people to the victory, and its better perception was facilitated by the concert program. Many facts and conclusions that were voiced here should be known to every schoolchild and student,” noted Vice-Rector Vyacheslav Bashev.

“The main impression from the conference is a feeling of pride for the younger generation. It is worthy of the memory of its ancestors,” concluded Sergei Rozhkov.

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

April 29, 2025
MIL-OSI Russia: RN-Yuganskneftegaz’s drilling has reached 7 million meters of rock

Translation. Region: Russian Federal

Source: Rosneft – Rosneft – An important disclaimer is at the bottom of this article.

RN-Yuganskneftegaz, Rosneft’s largest oil producing asset, drilled 7 million meters of rock in 2024, or 23% of all production drilling in the Russian oil industry. The company’s fields have 1,612 oil wells, including more than 1,000 horizontal ones.

Last year, RN-Yuganskneftegaz updated its production records. In June, the penetration rate in production drilling amounted to 678 thousand meters per month, in August, the daily penetration rate reached 30 thousand meters of rock.

The company’s fields have begun to replicate the technology of horizontal well casing with casing string running with shank rotation. The method ensures uniform distribution of cement and improves the quality of its adhesion to the rock. During production drilling and sidetracking (SBC), the TAML multi-well injection system of the 4th complexity level has been successfully tested. An automatic drilling control system has been introduced to control and optimize the production process.

687 oil wells were reconstructed using the sidetracking method. Of the 766 wells, oil production began after the sidetracking. As a result of using the technology, an additional 1.7 million tons were obtained in 2024. The number of wells put into production after the sidetracking increased by 23% compared to the previous year.

There are 136 production drilling rigs and 84 sidetracking rigs operating at RN-Yuganskneftegaz fields. Most of the drilling capacity is provided by the in-house oil service RN-Drilling.

Development of technological potential is one of the key elements of the Rosneft-2030 strategy. The introduction of new technological solutions allows increasing the geological potential of wells and conducting cost-effective production of complex hydrocarbon reserves.

Reference:

RN-Yuganskneftegaz is a key asset of Rosneft Oil Company, accounting for approximately 30% of the Company’s total production. The company carries out geological exploration and development of fields in 40 license areas with a total area of over 21 thousand square kilometers in the Khanty-Mansi Autonomous Okrug-Yugra. The company’s cumulative production since the start of its operations exceeds 2.7 billion tons of oil.

TAML – technology for drilling and completing multilateral wells. Level 4 involves casing and cementing the main and side bores.

Department of Information and Advertising of PJSC NK Rosneft April 29, 2025

Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

MIL OSI Russia News –

April 29, 2025
MIL-OSI USA: Smith Thanks Trump Administration for Granting Emergency Ethanol Waiver

Source: United States House of Representatives – Congressman Adrian Smith (R-NE)

Washington, DC — Today Representative Adrian Smith (R-NE) released the following statement after the Environmental Protection Agency (EPA) announced an emergency waiver to allow E15 sales nationwide through May 20 and took action to ensure uniform standards for E10 fuel sales.

“Drivers are looking for fuel price relief and higher ethanol blends are the commonsense solution. Ensuring the availability of this renewable, homegrown energy source empowers producers and retailers to meet demand during the summer travel months. I thank EPA Administrator Lee Zeldin and USDA Secretary Brooke Rollins for taking the necessary action to unleash domestic energy production. A permanent solution to provide long-term certainty is still needed, and I will continue to work toward enactment of my bill, the Nationwide Consumer and Fuel Retailer Choice Act, to eliminate unnecessary restrictions to E15.”

BACKGROUND:
Congressman Smith first introduced a bill to approve year-round sale of E15 in 2015.

On April 22, Smith led a bipartisan letter urging the administration to allow the nationwide sale of E-15 this summer

On March 11, Smith led a bipartisan press conference highlighting grassroots support for eliminating restrictions on E15 sales.

On February 13, Smith introduced the Nationwide Consumer and Fuel Retailer Choice Act to enable the year-round, nationwide sale of E15. Read more about the bipartisan, bicameral legislation here.

On February 6, 2025, Smith and Rep. Angie Craig (D-MN) led nearly 30 colleagues in sending a bipartisan letter to EPA Administrator Lee Zeldin. The letter emphasized the important role of the American biofuels industry in maximizing energy abundance and affordability while encouraging the EPA to issue timely and science-driven guidance to fulfill the Renewable Fuels Standard (RFS).

###

MIL OSI USA News –

April 29, 2025
MIL-OSI: BW Energy: OTC Markets Group Welcomes BW Energy Limited to OTCQX

Source: GlobeNewswire (MIL-OSI)

OTC Markets Group Welcomes BW Energy Limited to OTCQX

NEW YORK – OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced BW Energy Limited (Oslo Bors: BWE; OTCQX: BWERY, BWEFF), a growth-focused oil and gas company, has qualified to trade on the OTCQX® Best Market. BW Energy Limited upgraded to OTCQX from the Pink® market.

BW Energy Limited begins trading today on OTCQX under the symbols “BWERY” and “BWEFF.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.

Upgrading to the OTCQX Market is an important step for companies seeking to provide transparent trading for their U.S. investors. For companies listed on a qualified international exchange, streamlined market standards enable them to utilize their home market reporting to make their information available in the U.S. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws.

“The OTCQX Market provides a platform for increased recognition and engagement with a wider base of US investors. BW Energy is a fast-growing oil and gas company with production and attractive development assets in Gabon, Namibia and Brazil. We expect cross-trading on OTCQX to create additional long-term value through a broader US investor base and increased trading volumes in our shares,” says Carl K. Arnet, the CEO of BW Energy.

About BW Energy Limited
BW Energy is a growth E&P company with a differentiated strategy targeting proven offshore oil and gas reservoirs through low risk phased developments. The Company has access to existing production facilities to reduce time to first oil and cashflow with lower investments than traditional offshore developments. The Company’s assets are 73.5% of the producing Dussafu Marine licence offshore Gabon, 100% interest in the Golfinho and Camarupim fields, a 76.5% interest in the BM-ES-23 block, a 95% interest in the Maromba field in Brazil, a 95% interest in the Kudu field in Namibia, all operated by BW Energy. In addition, BW Energy holds approximately 6.6% of the common shares in Reconnaissance Energy Africa Ltd. and a 20% non-operating interest in the onshore Petroleum Exploration License 73 (“PEL 73”) in Namibia. Total net 2P+2C reserves and resources were 599 million barrels of oil equivalent at the start of 2025.

About OTC Markets Group Inc.:
OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX^® Best Market, OTCQB^® Venture Market, and Pink^® Open Market.

Our OTC Link^® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

OTC Link ATS, OTC Link ECN, OTC Link NQB, and MOON ATS^TM are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

Subscribe to the OTC Markets RSS Feed

Media Contact:
OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com

This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act

The MIL Network –

April 29, 2025
MIL-OSI Economics: 28 April 2025 Yury Trutnev: EEF big contributor to development of Far East and President’s instructions Deputy Prime Minister of the Russian Federation and Presidential Envoy to the Far Eastern Federal District Yury Trutnev chaired a meeting in Vladivostok on preparations in the lead-up to the 10th Eastern Economic Forum, which is scheduled to take place on the campus of Far Eastern Federal University on 3–6 September. The EEF is being organized by the Roscongress Foundation.

Source: Eastern Economic Forum

28 April 2025

Yury Trutnev: EEF big contributor to development of Far East and President’s instructions

Deputy Prime Minister of the Russian Federation and Presidential Envoy to the Far Eastern Federal District Yury Trutnev chaired a meeting in Vladivostok on preparations in the lead-up to the 10th Eastern Economic Forum, which is scheduled to take place on the campus of Far Eastern Federal University on 3–6 September. The EEF is being organized by the Roscongress Foundation.

“The Eastern Economic Forum has contributed much over the years to the development of the Far East and the fulfilment of the instructions of the President of the Russian Federation, Vladimir Putin. Thousands of people from all over the world attend the EEF every year, and no sanctions or anything else will succeed in weakening interest in it. The Russian Far East is a huge region, and its development affects its neighbours and the entire world. We will do our best as always to ensure that our guests receive all the information they seek and are able to carry out their work in comfort and safety at the Eastern Economic Forum,” Trutnev said as he opened the meeting.

The composition of the Forum programme was considered in detail.

“We discussed possible themes for the EEF, and I believe it would be impossible to ignore the Soviet nation’s victory in the Great Patriotic War. Our proposal for the main theme is going to be something like ‘The Far East: From Victory to Victory’, though we’ll think a bit more about the exact wording. The Second World War ended in the Far East. The President of the Russian Federation has ordered us to prepare a major exhibition on the island of Shumshu, where the Kuril landing took place, to educate young people and remind all of us about the heroic feats that led to the great victory,” Trutnev said.

The Ministry for the Development of the Russian Far East and Arctic suggested including in the business programme topics of vital importance to regional development and possible integration with the economy of the broader Asia-Pacific region.

“We would focus in particular on technological development. Technology is changing the world now. It is changing the very fabric of life. And many of these technologies either originate in Asia or are first brought to market here. We would like to see the Far East play a bigger role in this process and believe it can. We would like to use new tools like our international advanced-development territories to ensure that these technologies are created and replicated in Russia,” Minister for the Development of the Russian Far East and Arctic Alexei Chekunkov said.

First Deputy CEO of the Roscongress Foundation and Director of the Eastern Economic Forum Igor Pavlov touched on organizational issues and how preparations for the 10th Eastern Economic Forum were getting along.

“A great many events have been planned for EEF 2025, including the ‘Welcome to the Far East!’ exhibition, which traditionally enjoys the participation of federal ministries and agencies. And the sports programme will include a special patriotic Parade of Sails, rowing competitions, a hockey match, a run, and more,” Pavlov said.

According to Governor of Primorsky Territory Oleg Kozhemyako, the region has been following the roadmap laid out last year in its preparations for the Forum. Funds have been set aside in the regional budget for the construction of the region’s pavilion at the Far East Street exhibition, sports and cultural programmes, medical care, and road inspections. A special unit has been tasked with ensuring electrical supply, and preparations are underway on transmission lines and at power facilities. Law enforcement agencies are coming together to create a task force to ensure public order and security. 25 hotels in Vladivostok and Artem are on call to accommodate Forum guests and participants in 1,600 rooms.

Mayor of Vladivostok Konstantin Shestakov reported on the measures being implemented as part of the preparations for the Forum in the capital of the Far Eastern Federal District in landscaping, road infrastructure, sanitation and security, building facades, and catering and cultural events. Work has been planned to repair roads, paint elevated and underground pedestrian crossings, and fix metal and concrete fences, bus stops, and bridges. The storm water drainage system will also be cleaned, sunken manholes fixed, pavement and curbs touched up, graffiti and unauthorized advertising removed, and concrete surfaces and road infrastructure painted. The city itself will receive an important facelift, with private investors funding 10 objets d’art across the route that will be travelled by guests through the city. Special events, concerts, and evening programmes are also being planned for the city’s open-air venues, with additional cultural initiatives for Forum participants and the residents of Vladivostok in development.

Far Eastern Federal University President Boris Korobets spoke about the preparation of the Far Eastern Federal University campus for the Forum, with large-scale modernization of infrastructure to begin in May and student service brigades to take part in campus renovation work for the first time this year, for which volunteers are currently being recruited. For the fourth year in a row, FEFU will work together with the Russian Znanie Society to organize a lecture hall for the students and youth of Primorsky Territory at the Forum. 350 top students and talented schoolchildren will attend in person, with another 8.5 million people expected to join the event online. This year, the lecture will focus on the end of World War II, the contribution of the Soviet nation to the fight against fascism, and the events of the Soviet-Japanese War of 1945. A new visual attraction will be installed in the park on FEFU’s central square in the form of a 50-metre-high flagpole flying a 150-square-metre tricolour. As part of the Year of the Defender of the Fatherland announced by the President of Russia, an Alley of Heroes will be established in the campus park and dedicated to the Russian heroes serving their country in the special military operation from all eleven regions of the Far East.

The regions of the Far East are also preparing for this tenth anniversary forum. As in the past, they will present their economic achievements and unique culture and customs at the Far East Street exhibition. 11 region and five industry pavilions have been planned this year: two pavilions for the Ministry of Sport of Russia, the ‘Business’ and ‘GTO Arena’; the Far East and Arctic Development Corporation’s ‘Developing the Far East’ Pavilion; the Ministry of Natural Resources and Environment of Russia’s ‘Falcon House’ Pavilion; and the ‘Corporation Turizm.RF’ Pavilion. The pavilions dedicated to the regions will focus on economic and social achievements of the past ten years, provide information about investment projects, advanced technological developments, and the implementation of master plans for the development of the cities of the Far East, and the celebration of the 80th anniversary of victory in the Great Patriotic War. An alley dedicated to brands from the Far East is being organized in conjunction with ASI and will present the goods manufactured in the region.

Also discussed during the meeting were issues of sanitary and epidemiological safety to be addressed during the preparation for EEF 2025.

“The EEF is a well-prepared, balanced tool for attracting investment to the Far East that allows all federal executive authorities to see whether they are fulfilling the President’s instructions and for investors to understand that they are on the right track. And we will protect what we have here, even as we turn now to the content and move forward, work on the sessions, and think about how to set the right tasks,” Trutnev said in conclusion.

Read more

MIL OSI Economics –

April 29, 2025
MIL-OSI: Municipality Finance issues a EUR 175 million tap under its MTN programme

Source: GlobeNewswire (MIL-OSI)

Municipality Finance Plc
Stock exchange release
29 April 2025 at 11:00 am (EEST)

Municipality Finance issues a EUR 175 million tap under its MTN programme

On 30 April 2025 Municipality Finance Plc issues a new tranche in an amount of EUR 175 million to an existing benchmark issued on 26 April 2023. With the new tranche, the aggregate nominal amount of the benchmark is EUR 1.650 billion. The maturity date of the benchmark is 29 July 2030. The benchmark bears interest at a fixed rate of 3.125 % per annum.

The new tranche is issued under MuniFin’s EUR 50 billion programme for the issuance of debt instruments. The offering circular, the supplemental offering circular and final terms of the notes are available in English on the company’s website at https://www.kuntarahoitus.fi/en/for-investors.

MuniFin has applied for the new tranche to be admitted to trading on the Helsinki Stock Exchange maintained by Nasdaq Helsinki. The public trading is expected to commence on 30 April 2025. The existing notes in the series are admitted to trading on the Helsinki Stock Exchange.

J.P. Morgan SE acts as the Dealer for the issue of the new tranche.

MUNICIPALITY FINANCE PLC

Further information:

Joakim Holmström
Executive Vice President, Capital Markets and Sustainability
tel. +358 50 444 3638

MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions. The owners of the company include Finnish municipalities, the public sector pension fund Keva and the State of Finland.
The Group’s balance sheet is over EUR 53 billion.

MuniFin builds a better and more sustainable future with its customers. MuniFin’s customers include municipalities, joint municipal authorities, wellbeing services counties, corporate entities under their control, and non-profit organisations nominated by the Housing Finance and Development Centre of Finland (ARA). Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centres, schools and day care centres, and homes for people with special needs.

MuniFin’s customers are domestic but the company operates in a completely global business environment. The company is an active Finnish bond issuer in international capital markets and the first Finnish green and social bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.

Read more: https://www.kuntarahoitus.fi/en/

Important Information

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into any such country or jurisdiction or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, any securities or other financial instruments in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

This communication does not constitute an offer of securities for sale in the United States. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

The MIL Network –

April 29, 2025
MIL-OSI Europe: ECB Consumer Expectations Survey results – March 2025
Source: European Central Bank

29 April 2025

Compared with February 2025:
- median consumer perceptions of inflation over the previous 12 months remained unchanged, as did expectations for inflation five years ahead (reported for the first time this month), while median inflation expectations for both the next 12 months and three years ahead increased;
- expectations for nominal income growth over the next 12 months remained unchanged, while expectations for spending growth over the next 12 months decreased;
- expectations for economic growth over the next 12 months were unchanged (remaining somewhat negative), while the expected unemployment rate in 12 months’ time decreased;
- expectations for growth in the price of homes over the next 12 months increased, while expectations for mortgage interest rates 12 months ahead remained unchanged.
Inflation

The median rate of perceived inflation over the previous 12 months remained unchanged at 3.1% in March. This is its lowest level since September 2021. Median expectations for inflation over the next 12 months increased by 0.3 percentage points to 2.9%, the highest level since April 2024, while expectations for three years ahead edged up by 0.1 percentage points to 2.5%, the highest level since March 2024. Expectations for inflation five years ahead, which are being reported for the first time this month, were unchanged for the fourth consecutive month at 2.1%. For more information on this new measure of inflation expectations, please see the box entitled “Consumers’ long-term inflation expectations: an overview” in the Economic Bulletin, Issue 3, ECB, 2025. Inflation expectations at the one-year, three-year and five-year horizons thus remained below the perceived past inflation rate. Uncertainty about inflation expectations over the next 12 months remained unchanged in March at its lowest level since January 2022. While the broad evolution of inflation perceptions and expectations remained relatively closely aligned across income groups, over the previous year and a half inflation perceptions and short-horizon expectations for lower income quintiles were, on average, slightly above those for higher income quintiles. Younger respondents (aged 18-34) continued to report lower inflation perceptions and expectations than older respondents (those aged 35-54 and 55-70), albeit to a lesser degree than in previous years. (Inflation results)

Income and consumption

Consumers’ nominal income growth expectations over the next 12 months remained unchanged at 1.0%. Perceived nominal spending growth over the previous 12 months increased to 5.0%, from 4.9% in February. Expected nominal spending growth over the next 12 months decreased to 3.4% in March, from 3.5% in February and 3.6% in January. This decrease was observed across most income groups. (Income and consumption results)

Economic growth and labour market

Economic growth expectations for the next 12 months were stable in March, standing at -1.2%. Expectations for the unemployment rate 12 months ahead decreased to 10.4%, from 10.5% in February. Consumers continued to expect the future unemployment rate to be only slightly higher than the perceived current unemployment rate (10.0%), implying a broadly stable labour market. Expectations for both economic growth and the unemployment rate remained broadly stable over the previous four months, fluctuating within a narrow range. (Economic growth and labour market results)

Housing and credit access

Consumers expected the price of their home to increase by 3.1% over the next 12 months, which was slightly higher than in February. Households in the lowest income quintile continued to expect higher growth in house prices than those in the highest income quintile (3.3% and 2.8% respectively), although the difference between them narrowed in recent months. Expectations for mortgage interest rates 12 months ahead remained unchanged from February at 4.4%. As in previous months, the lowest income households expected the highest mortgage interest rates 12 months ahead (5.1%), while the highest income households expected the lowest rates (4.0%). The net percentage of households reporting a tightening (relative to those reporting an easing) in access to credit over the previous 12 months increased, while the net percentage of those expecting a tightening over the next 12 months declined. (Housing and credit access results)

The microdata underlying the aggregate results are available on the Consumer Expectations Survey (CES) web page in the Data and methodological information section.

The release of the Consumer Expectations Survey (CES) results for April is scheduled for 28 May 2025.

For media queries, please contact: Benoit Deeg, tel.: +49 172 1683704.

Notes
- Unless otherwise indicated, the statistics presented in this press release refer to the 2% winsorised mean. For further details, see ECB Consumer Expectations Survey – Guide to the computation of aggregate statistics.
- The CES is a monthly online survey of, currently, around 19,000 adult consumers (i.e. aged 18 or over) from 11 euro area countries: Belgium, Germany, Ireland, Greece, Spain, France, Italy, the Netherlands, Austria, Portugal and Finland. The main aggregate results of the CES are published on the ECB’s website every month. The results are used for policy analysis and complement other data sources used by the ECB.
- Further information about the survey and the data collected is available on the CES web page. Detailed information can also be found in the following two publications: Bańkowska, K. et al., “ECB Consumer Expectations Survey: an overview and first evaluation”, Occasional Paper Series, No 287, ECB, Frankfurt am Main, December 2021; and Georgarakos, D. and Kenny, G., “Household spending and fiscal support during the COVID-19 pandemic: Insights from a new consumer survey”, Journal of Monetary Economics, Vol. 129, Supplement, July 2022, pp. S1-S14.
- The survey results do not represent the views of the ECB’s decision-making bodies or staff.
MIL OSI Europe News –
April 29, 2025
MIL-OSI Europe: Monetary developments in the euro area: March 2025
Source: European Central Bank

29 April 2025

Components of the broad monetary aggregate M3

The annual growth rate of the broad monetary aggregate M3 decreased to 3.6% in March 2025 from 3.9% in February, averaging 3.7% in the three months up to March. The components of M3 showed the following developments. The annual growth rate of the narrower aggregate M1, which comprises currency in circulation and overnight deposits, increased to 3.8% in March from 3.4% in February. The annual growth rate of short-term deposits other than overnight deposits (M2-M1) decreased to 1.5% in March from 2.0% in February. The annual growth rate of marketable instruments (M3-M2) decreased to 11.3% in March from 18.0% in February.

Chart 1

Monetary aggregates

(annual growth rates)

Data for monetary aggregates

Looking at the components’ contributions to the annual growth rate of M3, the narrower aggregate M1 contributed 2.4 percentage points (up from 2.2 percentage points in February), short-term deposits other than overnight deposits (M2-M1) contributed 0.4 percentage points (down from 0.6 percentage points) and marketable instruments (M3-M2) contributed 0.7 percentage points (down from 1.1 percentage points).

Among the holding sectors of deposits in M3, the annual growth rate of deposits placed by households stood at 3.5% in March, compared with 3.4% in February, while the annual growth rate of deposits placed by non-financial corporations decreased to 2.3% in March from 3.0% in February. Finally, the annual growth rate of deposits placed by investment funds other than money market funds increased to 16.2% in March from 8.5% in February.

Counterparts of the broad monetary aggregate M3

The annual growth rate of M3 in March 2025, as a reflection of changes in the items on the monetary financial institution (MFI) consolidated balance sheet other than M3 (counterparts of M3), can be broken down as follows: net external assets contributed 2.7 percentage points (down from 3.1 percentage points in February), claims on the private sector contributed 2.1 percentage points (down from 2.2 percentage points), claims on general government contributed 0.2 percentage points (as in the previous month), longer-term liabilities contributed -1.3 percentage points (up from -1.5 percentage points), and the remaining counterparts of M3 contributed -0.1 percentage points (as in the previous month).

Chart 2

Contribution of the M3 counterparts to the annual growth rate of M3

(percentage points)

Data for contribution of the M3 counterparts to the annual growth rate of M3

Claims on euro area residents

The annual growth rate of total claims on euro area residents stood at 1.7% in March 2025, unchanged from the previous month. The annual growth rate of claims on general government stood at 0.4% in March, unchanged from the previous month, while the annual growth rate of claims on the private sector stood at 2.2% in March, compared with 2.3% in February.

The annual growth rate of adjusted loans to the private sector (i.e. adjusted for loan transfers and notional cash pooling) increased to 2.6% in March from 2.4% in February. Among the borrowing sectors, the annual growth rate of adjusted loans to households increased to 1.7% in March from 1.5% in February, while the annual growth rate of adjusted loans to non-financial corporations increased to 2.3% in March from 2.1% in February.

Chart 3

Adjusted loans to the private sector

(annual growth rates)

Data for adjusted loans to the private sector

Notes:
- Data in this press release are adjusted for seasonal and end-of-month calendar effects, unless stated otherwise.
- “Private sector” refers to euro area non-MFIs excluding general government.
- Hyperlinks lead to data that may change with subsequent releases as a result of revisions. Figures shown in annex tables are a snapshot of the data as at the time of the current release.
MIL OSI Europe News –
April 29, 2025
MIL-OSI United Kingdom: Get in a spin for Compton Care at WV Active

Source: City of Wolverhampton

WV Active Aldersley and WV Active Bilston-Bert Williams are hosting an epic two-hour spin-a-thon on Saturday 10 May from 9.30am-11.30am in support of the Cycle for Compton appeal.

The charity is asking people to cycle 50, 100, 250 or 500 miles throughout May to enable it to continue its work supporting patients and their families.

To get involved at WV Active costs just £10 per bike, with all proceeds going to Compton Care. Every participant will also get a WV Active and Compton goodie bag. It is open to members and non-members and places can be booked via the WV Active app or by visiting one of the centres.

Councillor Jasbir Jaspal, the City of Wolverhampton Council’s Cabinet Member for Adults and Wellbeing, said: “We’re delighted to be supporting Compton Care’s Cycle for Compton appeal with this spin-a-thon next weekend, so please take up this opportunity to spin, sweat and support this vital good cause.”

People can also support the Cycle for Compton appeal by donating online at Cycle for Compton.

Emily Thompson, Compton Care Community and Events Manager, said: “For over 40 years, we have been providing specialist palliative and end of life care to patients, and support for their families, helping them to navigate every aspect of life with a life limiting condition.

“Our care, whether delivered at our purpose-built facilities or at home, is tailored to individual needs, helping patients and their loved ones to feel safe and supported. Ensuring local people living with or caring for someone with a palliative diagnosis have access to the care and support they need remains our priority.

“By Cycling for Compton you are helping to raise vital funds for Compton Care.”

MIL OSI United Kingdom –

April 29, 2025
MIL-OSI United Kingdom: Greens lodge plans for tenants to withhold rent if landlords don’t carry out repairs

Source: Scottish Greens

29 Apr 2025 Housing

Homes are for living in, not for profiteering.

More in Housing

Scottish Green MSP Ariane Burgess has lodged proposals that would allow renters to withhold rent payments if landlords do not promptly carry out serious repairs to their property.

Ms Burgess’ proposed amendment to the Housing (Scotland) Bill would see renters able to withhold payment of rent if landlords do not carry out the repairs within 30 days of being notified about the issues.

This would ensure major concerns such as damp, mould, broken floorings and heating and hot water systems are repaired promptly, so that private housing stock is maintained to a safe standard for living in.

The amendment would also make the tribunal process more evenly shared, as landlords who act in bad faith would have to prove they have done enough to resolve the issue to unlock the withheld rent.

Ms Burgess said:

“My proposals will make it easier for renters to stand up to rogue landlords and to get vital repairs done quickly.

“At the moment, renters can do little except threaten to take their landlords to tribunals, which can be time consuming and stressful, and the burden of the tribunal falls on the renter.

“My amendment, which is backed by Living Rent, would allow tenants to withhold rent if their landlord hasn’t fixed serious issues within a timeframe of 30 days of being notified about them.

“Renters should expect their homes to be maintained to the same standard as any other. But in some cases, there are landlords who simply feel it is okay to take rent and let their properties fester with damp, mould and serious problems that significantly impact health and wellbeing.

“While not all landlords let this happen, and many will be encouraged to keep up the good work, there are some bad faith actors who fail to maintain their properties. For those who rent these properties, it can be a miserable experience. People in this situation need more support and the power to make sure major repairs happen.”

MIL OSI United Kingdom –

April 29, 2025
MIL-OSI United Kingdom: Greens in tax bid to tackle holiday home crisis in National Parks

Source: Scottish Greens

29 Apr 2025 Finance

National Parks are iconic spaces that should be protected.

More in Finance

The Scottish Greens are lodging plans to tackle the housing crisis in our National Parks and protect the communities who live there by increasing the tax due when buying a holiday home within park boundaries.

At present, someone buying a second or holiday home anywhere in Scotland must pay a tax known as the Additional Dwelling Supplement.

These new proposals, to be lodged by Ross Greer MSP as an amendment to the upcoming Housing Bill, would create a further charge on top of this within National Parks, in recognition of the housing crisis in these communities being caused by so many properties becoming holiday homes.

The change would build on successful changes already made by the Scottish Greens, namely doubling the Additional Dwelling Supplement from 4% to 8% since 2021. This will raise more than a quarter of a billion pounds in the current financial year.

The Greens preferred policy would be for the Additional Dwelling Supplement to be doubled again in National Parks, though this would be for MSPs to agree on an annual basis.

The latest data shows there are 2455 second homes in Loch Lomond and the Trossachs National Park, which is around 5% of all homes. This is more than five times the national average of 0.9%.

The problem is far worse within the Cairngorms National Park, where around 12% of all houses are second homes, reaching 20% in some communities, meaning one in five homes are empty for most of the year.

The Greens are confident that their amendment would raise more funds for public services and free up more homes for people to live in by reducing the number bought to be used as holiday homes.

Research from 2022 shows that 75% of National Park households cannot afford average house prices.

Ross Greer said:

“Our National Parks are iconic and beautiful places, but the families who actually live there are being pushed out by second home owners.

“Young people in particular are too often forced to leave the communities they grew up in after being outbid by those wealthy enough to buy a second property.

“Too many properties are also used as cash cows for short-term lets while local people are priced out and businesses find it impossible to recruit staff because there is nowhere for them to live.

“The changes already delivered by Green MSPs have reduced the number of second and holiday homes bought each year, freeing up more properties for people who need a home to live in. Now we can build on this success and ensure that the communities within our National Parks are more than just holiday parks.”

MIL OSI United Kingdom –

April 29, 2025
MIL-OSI Asia-Pac: 105k private flats projected

Source: Hong Kong Information Services

The projected private flat supply for the next three to four years is 105,000 units, 2,000 lower than the previous estimate.

The Housing Bureau today said there were 28,000 unsold units in completed projects at the end of March.

There were also 65,000 units under construction, excluding those pre-sold by developers, and 12,000 units from disposed sites where construction may start anytime.

The number of flats under construction in the first quarter was 3,600, while 5,500 units were completed during the period.

Click here for details.

MIL OSI Asia Pacific News –

April 29, 2025
MIL-OSI New Zealand: VANUATU: Families find climate-smart ways to grow crops

Source: Save The Children

Tropical Cyclone Lola was one of the most powerful off-season storms to strike the Pacific when it made landfall in October 2023 with wind speeds of up to 215 km/h, destroying homes, schools and plantations, claiming the lives of at least four people [2] and affecting about 91,000 people [1].

Recovery efforts were made significantly more challenging when Vanuatu’s capital Port Vila was then hit by a 7.3 magnitude earthquake in December last year, claiming 14 lives and destroying critical infrastructure.

Madleen, 11, said when the cyclone hit, her family’s crops were destroyed, leaving them short of food.

“It destroyed the food crops. When we came outside, we saw the crops were destroyed. The banana tree was just bearing fruit and it was destroyed. And we didn’t have enough food. We were eating rice, but we were almost running short. We were not eating well, we ate just enough. I felt bad.”

After the cyclone, a shortage of nutritious food put children at risk of hunger as well as diseases like diarrhea, with typically an increase in the number of children hospitalised for diarrhea following cyclones, Save the Children said.

Vanuatu is already one of the most climate disaster-prone countries in the world, and scientists say tropical cyclones will become more extreme as the climate crisis worsens. This will disproportionately impact children due to food shortages, disruption to education and psychosocial trauma associated with experiencing disasters.

Save the Children, alongside Vanuatu’s Ministry of Agriculture, Livestock, Forestry, Fisheries, and Biosecurity (MALFFB) and local partners, is supporting Madleen and her family through the Tropical Cyclone Lola Recovery Programme, which is helping improve food security and resilience in communities impacted by the cyclone.

As a part of the Recovery Programme, over 1,100 households have received climate-resistant [3] seeds from a seedbank. These seeds, for growing watermelon, papaya, Chinese cabbage, tomato, capsicum and cucumber, are proven to perform in Vanuatu’s changing climate, with tolerance to high rainfall, drought, pests and disease. Farmers are encouraged to preserve the seeds from crops and sell them back to the seed bank.

The programme is also training communities in other climate-smart agricultural techniques such as growing smaller fruit trees that are robust enough to withstand strong cyclone winds.

Save the Children has also built a collapsible nursery for plants in Madleen’s community that can be taken down when a cyclone is predicted, so saplings and trees can be stored, protected and replanted after it passes.

Save the Children Vanuatu Country Director, Polly Banks, said:

“In just 18 months, people in Vanuatu have been deeply shaken by a devastating cyclone and a powerful earthquake.

“Children have borne the brunt of this, with food taken off their plates, crops destroyed, homes and schools damaged and diseases on the rise. As the climate crisis accelerates, we must work with communities to strengthen their resilience, so children and their families are better equipped to face whatever comes next.

“We’re working in partnership with the Government of Vanuatu and local partners to help communities build the skills and resources they need to support themselves when future cyclones and disasters strike.”

Save the Children has been working in in Vanuatu for more than 40 years to make sure children are learning, protected from harm, and grow up healthy and strong.

MIL OSI New Zealand News –

April 29, 2025
MIL-OSI Asia-Pac: President Lai meets Japanese Diet Member and former Minister of State for Economic Security Takaichi Sanae

Source: Republic of China Taiwan

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2025-04-23
President Lai delivers remarks at International Holocaust Remembrance Day event
On the afternoon of April 23, President Lai Ching-te attended an International Holocaust Remembrance Day event and delivered remarks, in which he emphasized that peace is priceless, and war has no winners, while morality, democracy, and respect for human rights are powerful forces against violence and tyranny. The president stated that Taiwan will continue to expand cooperation with democratic partners and safeguard regional and global peace and stability, defending democracy, freedom, and human rights. He said we must never forget history, and must overcome our differences and join in solidarity to ensure that the next generations live in a world that is more just and more peaceful. Upon arriving at the event, President Lai heard a testimony from the granddaughter of a Holocaust survivor, followed by a rabbi’s recitation of the prayer “El Maleh Rachamim.” He then joined other distinguished guests in lighting candles in memory of the victims. A transcript of President Lai’s remarks follows: To begin, I want to thank the Israel Economic and Cultural Office (ISECO) in Taipei, German Institute Taipei, Taiwan Foundation for Democracy, and Ministry of Foreign Affairs for co-organizing this deeply significant memorial ceremony again this year. I also want to thank everyone for attending. We are here today to remember the victims of the Holocaust, express sympathy for the survivors, honor the brave individuals who protected the victims, and acknowledge all who were impacted by this atrocity. It was deeply moving to hear Ms. [Orly] Sela share the story of how her grandmother, Yehudit Biksz, escaped the Nazi regime. I want to thank her specially for traveling so far to attend this event. From the 1930s through World War II, the Nazi regime sought to exclude Jewish people from society. In their campaign, they perpetrated systematic genocide driven by their ideology. Policies and directives under the authoritarian Nazi regime resulted in the deaths of approximately 6 million Jews. Millions of others were persecuted, including Romani people, persons with disabilities, the gay community, and anyone who disagreed with Nazi ideology. It is one of the darkest chapters in human history. Many countries, including Taiwan, have enacted anti-massacre legislation, and observe a remembrance day each year. Those occasions help us remember the victims, preserve historical memory, and most importantly, reinforce our resolve to fight against hatred and discrimination. Twenty-three years ago, Chelujan (車路墘) Church in Tainan founded the Taiwan Holocaust Memorial Museum. It is the first Jewish museum in Taiwan, and the second Holocaust museum in Asia. Its founding mission urges us to forget hatred and love one another; put an end to war and advocate peace. Many of the exhibition items come from Jewish people, connecting Taiwan closer with Israel and helping Taiwanese better understand the experiences of Jewish people. In this way, we grow to more deeply cherish peace. When I was mayor of Tainan, I took part in an exhibition event at Chelujan Church. I was also invited by the Israeli government to join the International Mayors Conference in Israel, where I visited the World Holocaust Remembrance Center. I will never forget how deeply that experience moved me, and as a result, peace and human rights became even more important issues for me. These issues are valued by Taiwan and our friends and allies. They are also important links connecting Taiwan with the world. Peace is priceless, and war has no winners. We will continue to expand cooperation with democratic partners and safeguard regional and global peace and stability. We will also continue to make greater contributions and work with the international community to defend democracy, freedom, and human rights. This year also marks the 80th anniversary of the end of World War II. However, we still see wars raging around the world. We see a resurgence of authoritarian powers, which could severely impact global democracy, peace, and prosperous development. Today’s event allows for more than reflection on the past; it also serves as a warning for the future. We are reminded of the threats that hatred, prejudice, and extremism pose to humanity. But we are also reminded that morality, democracy, and respect for human rights are powerful forces against violence and tyranny. We must never forget history. We must overcome our differences and join in solidarity for a better future. Let’s work together to ensure that the next generations live in a world that is more just and more peaceful. Also in attendance at the event were Member of the Israeli Knesset (parliament) and Taiwan friendship group Chair Boaz Toporovsky, ISECO Representative Maya Yaron, and German Institute Taipei Deputy Director General Andreas Hofem.

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2025-04-23
President Lai pays respects to Pope Francis
On the morning of April 23, President Lai Ching-te visited the Taipei Archdiocesan Curia to pay respects in a memorial ceremony for His Holiness Pope Francis. As officiant of the ceremony, President Lai burned incense and presented flowers, fruits, and wine to pay his respects to Pope Francis. At the direction of the master of ceremonies, the president then bowed three times in front of Pope Francis’s memorial portrait, conveying his grief and deep respect for the late pope. After hearing of Pope Francis’s passing on April 21, President Lai promptly requested the Ministry of Foreign Affairs to express sincere condolences from the people and government of Taiwan to the Vatican. The president also instructed Minister of Foreign Affairs Lin Chia-lung (林佳龍) to convey condolences to the Holy See’s Apostolic Nunciature in Taiwan.

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2025-04-23
President Lai meets US CNAS NextGen fellows
On the morning of April 23, President Lai Ching-te met with fellows from the Shawn Brimley Next Generation National Security Leaders Program (NextGen) run by the Center for a New American Security (CNAS). In remarks, President Lai thanked the government of the United States for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. The president pointed out that we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US, and form a “Taiwan investment in the US team” to expand investment and bring about even closer Taiwan-US trade cooperation, allowing us to reduce the trade deficit and generate development that benefits both sides. A translation of President Lai’s remarks follows: Ms. Michèle Flournoy, chair of the CNAS Board of Directors, is a good friend of Taiwan, and she has made major contributions to Taiwan-US relations through her long-time efforts on various aspects of our cooperation. I am happy to welcome Chair Flournoy, who is once again leading a NextGen Fellowship delegation to Taiwan. CNAS is a prominent think tank focusing on US national security and defense policy based in Washington, DC. Its NextGen Fellowship has fostered talented individuals in the fields of national security and foreign affairs. This year’s delegation is significantly larger than those of the past, demonstrating the increased importance that the next generation of US leaders attach to Taiwan. On behalf of the people of Taiwan, I extend my sincerest welcome to you all. The Taiwan Strait, an issue of importance for our guests, has become a global issue. There is a high degree of international consensus that peace and stability across the Taiwan Strait are indispensable elements in global security and prosperity. Facing military threats from China, Taiwan proposed the Four Pillars of Peace action plan. First, we are actively implementing military reforms, enhancing whole-of-society defense resilience, and working to increase our defense budget to more than 3 percent of GDP. Second, we are strengthening our economic resilience. As Taiwan’s economy must keep advancing, we can no longer put all our eggs in one basket. We are taking action to remain firmly rooted in Taiwan while expanding our global presence and marketing worldwide. In these efforts, we are already seeing results. Third, we are standing side-by-side with other democratic countries to demonstrate the strength of deterrence and achieve our goal of peace through strength. And fourth, Taiwan is willing, under the principles of parity and dignity, to conduct exchanges and cooperate with China towards achieving peace and stability in the Taiwan Strait. This April 10 marked the 46th anniversary of the enactment of the Taiwan Relations Act. We thank the US government for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. We look forward to Taiwan and the US continuing to strengthen collaboration on the development of both our defense industries as well as the building of non-red supply chains. This will yield even more results and further deepen our economic and trade partnership. The US is now the main destination for outbound investment from Taiwan. Moving forward, we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US. And our government will form a “Taiwan investment in the US team” to expand investment. We hope this will bring Taiwan-US economic and trade cooperation even closer and, through mutually beneficial assistance, allow us to generate development that benefits both our sides while reducing our trade deficit. In closing, thank you once again for visiting Taiwan. We hope your trip is fruitful and leaves you with a deep impression of Taiwan. We also hope that going forward you continue supporting Taiwan and advancing even greater development for Taiwan-US ties. Chair Flournoy then delivered remarks, first thanking President Lai for making time to receive their delegation. Referring to President Lai’s earlier remarks, she said that it is quite an impressive group, as past members of this program have gone on to become members of the US Congress, leading government experts, and leaders in the think-tank world and in the private sector. She remarked that investing in this group is a wonderful privilege for her and that they appreciate President Lai’s agreeing to take the time to engage in exchange with them. Chair Flournoy emphasized that they are visiting Taiwan at a critical moment, when there is so much change and volatility in the geostrategic environment, a lot of uncertainty, and a lot of unpredictability. She stated that given our shared values, our shared passion for democracy and human rights, and our shared interests in peace and stability in the Indo-Pacific region, this is an important time for dialogue, collaboration, and looking for additional opportunities where we can work together towards regional peace and stability.

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2025-04-18
President Lai meets US delegation from Senate Foreign Relations Subcommittee on East Asia and the Pacific
On the afternoon of April 18, President Lai Ching-te met with a delegation led by Senator Pete Ricketts, chairman of the United States Senate Foreign Relations Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy. In remarks, President Lai said we hope to promote our Taiwan plus one policy, that is, new industrial arrangements for Taiwan plus the US, to leverage the strengths of both sides and reinforce our links in such areas as the economy, trade, and technological innovation. The president said that by deepening cooperation, Taiwan and the US will be better positioned to work together on building non-red supply chains. He said a more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. A translation of President Lai’s remarks follows: I warmly welcome you all to Taiwan. I want to take this opportunity to especially thank Chairman Pete Ricketts and Ranking Member Chris Coons for their high regard and support for Taiwan. Chairman Ricketts has elected to visit Taiwan on his first overseas trip since taking up his new position in January. Ranking Member Coons made a dedicated trip to Taiwan in 2021 to announce a donation of COVID-19 vaccines on behalf of the US government. He also visited last May, soon after my inauguration, continuing to deepen Taiwan-US exchanges. Thanks to support from Chairman Ricketts and Ranking Member Coons, the US Congress has continued to introduce many concrete initiatives and resources to assist Taiwan through the National Defense Authorization Act and Consolidated Appropriations Act, bringing the Taiwan-US partnership even closer. For this, I want to again express my gratitude. There has long been bipartisan support in the US Congress for maintaining security in the Taiwan Strait. Faced with China’s persistent political and military intimidation, Taiwan will endeavor to reform national defense and enhance whole-of-society defense resilience. We will also make special budget allocations to ensure that our defense budget exceeds 3 percent of GDP, up from the current 2.5 percent, so as to enhance Taiwan’s self-defense capabilities. We look forward to Taiwan and the US continuing to work together to maintain peace and stability in the region. We will also promote our Taiwan plus one policy, that is, new industrial arrangements for Taiwan plus the US. We hope to leverage the strengths of both sides and reinforce our links in such areas as the economy, trade, and technological innovation, jointly promoting prosperity and development. We believe that by deepening cooperation through the Taiwan plus one policy, Taiwan and the US will be better positioned to work together on building non-red supply chains. A more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. In closing, I wish Chairman Ricketts and Ranking Member Coons a smooth and successful visit. Chairman Ricketts then delivered remarks, first thanking President Lai for his hospitality. He said that he and his delegation have had a wonderful time meeting with government officials, industry representatives, and the team at the American Institute in Taiwan. Highlighting that Taiwan has long been a friend and partner of the US, he said their bipartisan delegation to Taiwan emphasizes long-time bipartisan support in the US Congress for Taiwan, and though administrations change, that bipartisan support remains. Chairman Ricketts stated that the US is committed to peace and stability in the Indo-Pacific and that they want to see peace across the Taiwan Strait. He also stated that the US opposes any unilateral change in the status of Taiwan and that they expect any differences between Taiwan and China to be resolved peacefully without coercion or the threat of force. To that end, he said, the US will continue to assist Taiwan in its self-defense and will also step up by bolstering its own defense capabilities, noting that there is broad consensus on this in the US Congress. Chairman Ricketts stated that they want to see Taiwan participate in international organizations and memberships where appropriate, and encourage Taiwan to reach out to current and past diplomatic allies to strengthen those bilateral relationships. He pointed out that the long economic relationship between the US and Taiwan is important for our as well as the entire world’s security and prosperity. He also noted that there are many opportunities for us to continue to grow the economic relationship that will help create more prosperity for our respective peoples and ensure that we are more secure in the world. Chairman Ricketts emphasized that they made this trip early on in the new US administration to work with Taiwan to develop three points: security, diplomatic relations, and the economy. He stated that in the face of rising aggression from communist China, the US will provide commensurate help to Taiwan in self-defense and that they will continue to provide the services and tools needed. In closing, Chairman Ricketts once again thanked President Lai for the hospitality and said he looks forward to dialogue on how we can continue these relationships. Ranking Member Coons then delivered remarks. Mentioning that their delegation also visited the Philippines on this trip, he said that there and in Taiwan, they have been focused on peace, stability, and security, and the ways for deepening and strengthening economic and security relations. He noted that 46 years ago, the US Senate passed the Taiwan Relations Act, adding that it was strongly bipartisan when enacted and that support for it is still strongly bipartisan today. Its core commitment, he said, is that the US will be engaged and will be a partner in ensuring that any dispute or challenge across the strait will be resolved peacefully, and that Taiwan will have the resources it needs for its self-defense. Ranking Member Coons said that between people, friendships are deepest and most enduring when they are based not just on interests but on values, and that the same is true between the US and Taiwan. Free press, free enterprise, free societies, democracy – these core shared values, he said, anchor our friendship and partnership, making them deeper. He remarked that they are grateful for the significant investment in the US being made by companies from Taiwan, but what anchors our partnership, in addition to these important investments and investments being made by Taiwan in its own security, are the values that mobilize our free-enterprise spirit and our commitment to free societies. In Europe in recent years, Ranking Member Coons said, an aggressive nation has tried to change boundaries and change history by force. He said that the US and dozens of countries committed to freedom have come to the aid of Ukraine to defend it, help it stabilize, and secure its future. So too in this region of the world, he added, the US and a bipartisan group in the US Senate are committed to stable, secure, peaceful relations and to deterring any unilateral effort to change the status quo by force. In closing, he said he is grateful for a chance to return to Taiwan after the pandemic and that he looks forward to our conversation, our partnership, and the important work we have in front of us. The delegation was accompanied to the Presidential Office by American Institute in Taiwan Taipei Office Director Raymond Greene.

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2025-04-17
President Lai meets New Zealand delegation from All-Party Parliamentary Group on Taiwan
On the morning of April 17, President Lai Ching-te met with a delegation from New Zealand’s All-Party Parliamentary Group on Taiwan. In remarks, President Lai thanked the government of New Zealand for reiterating the importance of peace and stability across the Taiwan Strait on multiple occasions since last year. He also stated that this year, the Taiwan-New Zealand economic cooperation agreement (ANZTEC) is being implemented in its complete form. The president expressed hope that deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among our indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. A translation of President Lai’s remarks follows: I extend a warm welcome to all of our guests. New Zealand’s All-Party Parliamentary Group on Taiwan was established in 2023, marking a significant milestone in the deepening of Taiwan-New Zealand relations. I would like to thank Members of Parliament Stuart Smith and Tangi Utikere for leading this delegation, and thank all our guests for demonstrating support for Taiwan through action. We currently face a rapidly changing international landscape. Authoritarian regimes continue to converge and expand. Democracies must actively cooperate and jointly safeguard peace, stability, and the prosperous development of the Indo-Pacific region. Since last year, the government of New Zealand has on multiple occasions reiterated the importance of peace and stability across the Taiwan Strait. On behalf of the people of Taiwan, I would like to express our sincere gratitude for these statements and demonstrations of support. This year, ANZTEC is being implemented in its complete form. We look forward to exploring even more diverse markets with New Zealand. Deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. Taiwan and New Zealand share the universal values of democracy, freedom, and respect for human rights, and parliamentary diplomacy is a tradition practiced by democracies around the world. Looking ahead, our parliamentary exchanges and mutual visits are bound to become more frequent. This will enable us to explore even more opportunities for cooperation and further deepen and solidify the democratic partnership between Taiwan and New Zealand. Thank you once again for making the long journey to visit us. I wish you a fruitful and successful trip. I also hope that everyone can take time to see more of Taiwan, try our local cuisine, and learn more about our culture. I hope our guests will fall in love with Taiwan. MP Smith then delivered remarks, saying that it is a great pleasure and an honor to be received by President Lai. The MP, noting that President Lai already covered many of the points he planned to make, went on to say that New Zealand and Taiwan share many values. He indicated that both are trading nations that rely on easy access for imports and exports, and that is why freedom of navigation is so important. That is why New Zealand had a naval vessel sail through the Taiwan Strait, he said, to underline the importance of freedom of navigation and our mutual security. MP Smith said that they look forward to building stronger relationships and enhancing the trade between our two nations. He added that New Zealand has much to offer in the field of geothermal energy to assist Taiwan, and mentioned that New Zealand is third largest in terms of the number of rocket launchers for satellites, which could assist Taiwan with communications in the future. New Zealand has other products as well, he said, but looks for assistance from Taiwan’s technology and technological sector. Lastly, MP Smith stated that he looks forward to a long and prosperous relationship between Taiwan and New Zealand. MP Utikere then delivered remarks, indicating that like Taiwan, New Zealand is a nation that is surrounded by ocean, which means that they rely on strong partnerships with communities of interest all around the globe. He said that the all-party parliamentary friendship group that was established and that they are a part of goes a long way in ensuring that a secure relationship between our two parliaments can continue to prosper. The MP also thanked Taiwan’s Representative to New Zealand Joanne Ou (歐江安) and her team for their work, which has ensured the success of the delegation’s visit. He said that the delegation experienced meetings with ministers in Taiwan’s government, members of the legislature, and those from the non-government organization sector as well. He also said that they enjoyed the opportunity to visit Wulai, and that the strength of the connections between the indigenous peoples of Taiwan and the indigenous peoples of Aotearoa New Zealand is something that certainly landed with members of the delegation. MP Utikere noted that he will take up President Lai’s offer on experiencing more of Taiwan, and will spend a few extra days in Tainan, which he understands has a very special place in the president’s heart, adding that he looks forward to his time and experiences there. The MP concluded his remarks by saying that this will be a relationship that continues to go from strength to strength. After their remarks, the New Zealand delegation sang the Māori song “Tutira Mai Nga Iwi” to extend best wishes to Taiwan. Also in attendance at the meeting were New Zealand Members of Parliament Jamie Arbuckle, Greg Fleming, Hamish Campbell, Cameron Luxton, and Helen White.

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2025-04-06
President Lai delivers remarks on US tariff policy response
On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions. However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods: 1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age. 4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.

MIL OSI Asia Pacific News –

April 29, 2025
MIL-OSI Europe: Piero Cipollone: Navigating a fractured horizon: risks and policy options in a fragmenting world

Source: European Central Bank

Speech by Piero Cipollone, Member of the Executive Board of the ECB, at the conference on “Policy challenges in a fragmenting world: Global trade, exchange rates, and capital flow” organised by the Bank for International Settlements, the Bank of England, the ECB and the International Monetary Fund

Frankfurt am Main, 29 April 2025

I’m honoured to welcome you to this conference, jointly organised by the Bank for International Settlements (BIS), the Bank of England, the European Central Bank (ECB) and the International Monetary Fund (IMF).^[1]

Today, we come together to discuss the urgent challenges posed by global fragmentation – a growing risk to our interconnected world. Earlier this month, the President of the United States announced tariff hikes, sending shockwaves through the global economy – a stark reminder that the fractures we face are no longer hypothetical, but real.

This announcement is but the latest chapter in a series of four major shocks that have been reshaping our world in recent years.

First, since 2018 the intensifying power struggle between the United States and China has led to tit-for-tat tariffs affecting nearly two-thirds of the trade between these two economic giants. Second, starting in 2020, the pandemic caused unprecedented disruptions to supply chains, which prompted a re-evaluation of the balance between global integration and resilience. Third, in 2022 Russia’s unjustified invasion of Ukraine not only triggered an energy crisis but also deepened a geopolitical divide that continues to have worldwide repercussions. And fourth, we are now facing the rising risk of economic fragmentation within the western bloc itself, as new trade barriers threaten long-standing international partnerships.

The data paint a sobering picture. Geopolitical risk levels have surged to 50% above the post-global financial crisis average, and uncertainty surrounding trade policy has risen to more than eight times its average since 2021.^[2] What we are experiencing is not merely a temporary disruption – it is a profound shift in how nations interact economically, financially and diplomatically. So, it does not come as a surprise that financial markets have experienced considerable volatility in recent weeks. It remains to be seen if, for markets to find a stable equilibrium, it will be enough to step back from the current international economic disorder towards a more stable, predictable and reliable trading system – a development that appears elusive in the short term. Against this backdrop, recent moves in exchange rates, bond yields and equities, suggest that US markets have not been playing their usual role as a safe haven in this particular episode of stress. This potentially has far-reaching longer-term implications for capital flows and the international financial system.

Today I will focus on three key points. First, we are seeing increasing signs of fragmentation becoming visible across the economy and financial system. Second, the implications of this accelerating fragmentation could extend far beyond the immediate disruptions, with consequences for growth, stability and prosperity. Third, in this evolving economic landscape, central banks must adapt their approaches yet retain a steadfast focus on their core mandates, while striving to preserve international cooperation.

The emerging reality of fragmentation

Let me begin by addressing a common belief – still held by many until recently – that, despite rising geopolitical tensions, globalisation appears largely resilient. Headline figures in trade and cross-border investment, for example, do indeed appear to support this belief. In 2024 world trade expanded to a record USD 33 trillion – up 3.7% from 2023. Similarly, the global stock of foreign direct investment reached an unprecedented USD 41 trillion.^[3] However, these surface-level indicators may not reflect the underlying realities, creating a misleading sense of stability when important changes are already underway. In reality, fragmentation is already happening in both the global economy and the financial system.

Fragmentation of the real economy

Fragmentation is most evident in rebalancing trade, driven by escalating geopolitical tensions. Take, for instance, the escalating US-China trade tensions that have been intensifying since 2018. Studies show the impact of geopolitical distance on trade has become notably negative. A doubling of geopolitical distance between countries – akin to moving from the position of Germany to that of India in relation to the United States – decreases bilateral trade flows by approximately 20%.^[4]

The series of shocks to the global economy in recent years have also contributed to this fragmentation. According to gravity model estimates, trade between geopolitically distant blocs has significantly declined. Trade between rivals is about 4% lower than it might have been without the heightened tensions post-2017, while trade between friends is approximately 6% higher.^[5] Global value chains are being reconfigured as companies respond to these new realities. In 2023 surveys already indicated that only about a quarter of leading firms operating in the euro area^[6] that sourced critical inputs from countries considered subject to elevated risk had not developed strategies to reduce their exposure.^[7]

However, these shifting trade patterns have not yet been reflected in overall global trade flows. Non-aligned countries have played a crucial role as intermediaries, or connectors, helping to sustain global trade levels even as direct trade between rival blocs declines.^[8] But this stabilising influence is unlikely to endure as trade fragmentation deepens and geopolitical alliances continue to shift.

The tariffs announced by the US Administration are far-reaching and affect a substantial share of global trade flows. The effects on the real economy are likely to be material. In its World Economic Outlook, published last week, the International Monetary Fund revised down global growth projections for 2025-26 by a cumulative 0.8 percentage points and global trade by a cumulative 2.3 percentage points.^[9] This notably reflects a negative hit from tariffs that ranges between 0.4% to 1% of world GDP by 2027.^[10] In particular, IMF growth projections for the United States have been revised down by a cumulative 1.3 percentage points in 2025-26. The cumulative impact on euro area growth is smaller, at 0.4 percentage points.

Financial fragmentation

The fragmentation we are witnessing in global trade is mirrored in the financial sector, where geopolitical tensions are also reshaping the landscape.

In recent years, global foreign direct investment flows have increasingly aligned with geopolitical divides. Foreign direct investment in new ventures has plunged by nearly two-thirds between countries from different geopolitical blocs. However, strong intra-bloc investments have helped sustain overall foreign direct investment levels globally, masking some of the fragmentation occurring beneath the surface.^[11]

But, as with trade flows, this dynamic is unlikely to persist as geopolitical tensions grow within established economic blocs. For instance, increased geopolitical distance is shown to curtail cross-border lending. A two standard deviation rise in geopolitical distance – akin to moving from the position of France to that of Pakistan in relation to Germany – leads to a reduction of 3 percentage points in cross-border bank lending.^[12]

The impact of fragmentation in global financial infrastructure is perhaps even more revealing. Since 2014 correspondent banking relationships – crucial for facilitating trade flows across countries – have declined by 20%. While other factors – such as a wave of concentration in the banking industry, technological disruptions and profitability considerations – have played a role^[13], the contribution of the geopolitical dimension can hardly be overstated. The repercussions of this decline can be profound. Research shows that when correspondent banking relationships are severed in a specific corridor, a firm’s likelihood of continuing to export between the two countries of that corridor falls by about 5 percentage points in the short term, and by about 20 percentage points after four years.^[14]

Contributing to this trend, countries such as China, Russia and Iran have launched multiple initiatives to develop alternatives to established networks such as SWIFT, raising the possibility of a fragmented global payment system.^[15] Geopolitical alignment now exerts a stronger influence than trade relationships or technical standards in connecting payment systems between countries.^[16] This poses risks of regional networks becoming more unstable, increased trade costs and settlement times, and reduced risk sharing across countries.

Additionally, we are witnessing a noticeable shift away from traditional reserve currencies, with growing interest in holding gold. Central banks purchased more than 1,000 tonnes of gold in 2024, almost double the level of the previous decade, with China being the largest purchaser, at over 225 tonnes. At market valuations, the share of gold in global official reserves has increased, reaching 20% in 2024, while that of the US dollar has decreased. Survey data suggest that two-thirds of central banks invested in gold to diversify, 40% to protect against geopolitical risk and 18% because of the uncertainty over the future of the international monetary system.^[17] There are further signs that geopolitical considerations increasingly influence decisions to invest in gold. The negative correlation of gold prices with real yields has broken down since 2022, a phenomenon we have also observed in recent weeks. This suggests that gold prices have been influenced by more than simply the use of gold to hedge against inflation. Moreover, countries geopolitically close to China and Russia have seen more pronounced increases in the share of gold in official foreign reserves since the last quarter of 2021.

The looming consequences of fragmentation

Accelerating fragmentation is resulting in the immediate disruptions we are now seeing, but this is likely to only be the beginning – potentially profound medium and long-term consequences for growth, stability and prosperity can be expected.

Medium-term impacts

The initial consequences of fragmentation are already evident in the form of increased uncertainty. In particular, trade policy uncertainty has led to a broader rise in global economic policy instability, which is stifling investment and dampening consumption. Our research suggests that the recent increase in trade policy uncertainty could reduce euro area business investment by 1.1% in the first year and real GDP growth by around 0.2 percentage points in 2025-26^[18]. Consumer sentiment is also under strain, with the ECB’s Consumer Expectations Survey revealing that rising geopolitical risks are leading to more pessimistic expectations, higher income uncertainty and ultimately a lower willingness to spend.^[19] Moreover, ECB staff estimates suggest that the observed increase in financial market volatility might imply lower GDP growth of about 0.2 percentage points in 2025.

Over the medium term, tariffs are set to have an unambiguously recessionary effect, both for countries imposing restrictions and those receiving them. The costs are particularly high when exchange rates fail to absorb tariff shocks, and some evidence suggests exchange rates have become less effective in this role.^[20]

The Eurosystem’s analysis of potential fragmentation scenarios suggests that such trade disruptions could turn out to be significant. In the case of a mild decoupling between the western (United States-centric) and the eastern (China-centric) bloc, where trade between East and West reverts to the level observed in the mid-1990s, global output could drop by close to 2%.^[21] In the more extreme case of a severe decoupling – essentially a halt to trade flows – between the two blocs, global output could drop by up to 9%. Trade-dependent nations would bear the brunt of these trade shocks, with China potentially suffering losses of between 5% and 20%, and the EU seeing declines ranging from 2.4% to 9.5% in the mild and severe decoupling scenarios respectively. The analysis also shows that the United States would be more significantly affected if it imposed additional trade restrictions against western and neutral economies – with real GDP losses of almost 11% in the severe decoupling scenario – whereas EU losses would increase only slightly in such a case.^[22]

The inflationary effects of trade fragmentation are more uncertain. They depend mainly on the response of exchange rates, firms’ markups and wages. Moreover, they are not distributed equally. While higher import costs and the ensuing price pressures are likely to drive up inflation in the countries raising tariffs, the impact is more ambiguous in other countries as a result of the tariffs’ global recessionary effects, which push down demand and commodity prices, as well as of the possible dumping of exports from countries with overcapacity. The short to medium-term effects may even prove disinflationary for the euro area, where real rates have increased and the euro has appreciated following US tariff announcements.

In fact, a key feature of most model-based assessments is that higher US tariffs lead to a depreciation of currencies against the US dollar, moderating the inflationary effect for the United States and amplifying it for other countries. But so far we have seen the opposite: the risk-off sentiment in response to US tariff announcements and economic policy uncertainty have led to capital flows away from the United States, depreciating the dollar and putting upward pressure on US bond yields. Conversely, the euro area benefited from safe haven flows, with the euro appreciating and nominal bond yields decreasing.

Long-term structural changes

The long-term consequences of economic fragmentation are inherently difficult to predict, but by drawing on historical examples and recognising emerging trends, it’s clear that we are on the verge of significant structural changes. Two areas stand out.

The first one is structurally lower growth. On this point, international economic literature has reached an overwhelming consensus.^[23] Quantitatively, point estimates might vary. For example, research of 151 countries spanning more than five decades of the 20th century reveals that higher tariffs have typically led to lower economic growth. This is largely due to key production factors – labour and capital – being redirected into less productive sectors.^[24]

However, data from the late 19th and early 20th centuries, a period which tariff supporters often look back to, seem to tell a different story. At that time, trade barriers across countries were high – the US effective tariff rate, for example, reached almost 60%, twice as high as after the 2 April tariffs. And sometimes countries imposing higher trade barriers enjoyed higher growth, which may provide motivation for current policymakers’ trade tariff policies. But these episodes need to be read in historical context. Before 1913, tariffs mostly shielded manufacturing, a high-productivity sector at the time, attracting labour from other, less productive sectors, like agriculture. Therefore, their negative effects were mitigated by the expansion of industries at the frontier of technological innovation. Moreover, the interwar years offer further nuance – the Smoot-Hawley tariffs of the 1930s had relatively limited direct effects on US growth, mainly because trade accounted for just 5% of the economy.

But today’s tariffs are unlikely to replicate the positive effects seen in the 19th century. Instead, they risk creating the same inefficiencies observed in the course of the 20th century, by diverting resources from high-productivity sectors to lower-productivity ones. This contractionary effect could lead to persistently lower global growth rates. In fact, the abolition of trade barriers within the EU and the international efforts towards lower trade barriers in the second half of the 20th century were a direct response to the economic and political impact of protectionism,^[25] which had played a key role in worsening and prolonging the Great Depression^[26] and had contributed to the formation of competing blocs in the run-up to the Second World War.^[27]

The second long-term shift driven by fragmentation might be the gradual transition from a US-dominated, global system to a more multipolar one, where multiple currencies compete for reserve status. For example, if the long-term implications of higher tariffs materialise, notably in the form of higher inflation, slower growth and higher US debt, this could undermine confidence in the US dollar’s dominant role in international trade and finance.^[28] Combined with a further disengagement from global geopolitical affairs and military alliances, this could, over time, undermine the “exorbitant privilege” enjoyed by the United States, resulting in higher interest rates domestically.^[29]

Moreover, as alternative payment systems gain traction, regional currencies may start to emerge as reserves within their respective blocs. This could be accompanied by the rise of competing payment systems, further fragmenting global financial flows and international trade. Such shifts would increase transaction costs and erode the capacity of countries to share risks on a global scale, making the world economy more fragmented and less efficient.

The central bank’s role in a fragmented world

So, as these tectonic shifts reshape the global economic landscape, central banks must adapt their approaches while remaining steadfast in their core mandates. The challenges posed by fragmentation require a delicate balance between confronting new realities and working to preserve the benefits of an integrated global economy. In order to navigate the present age of fragmentation, it is necessary to take action in four key areas.

First, central banks must focus on understanding and monitoring fragmentation. Traditional macroeconomic models often assume seamless global integration and may not fully capture the dynamics of a fragmenting world. Enhanced analytical frameworks that incorporate geopolitical factors and how businesses adjust to these risks will be essential for accurate forecasting and effective policy formulation. The Eurosystem is reflecting on these issues.

Second, monetary policy must adapt to the new nature of supply shocks generated by fragmentation. The effects of the greater frequency, size and more persistent nature of fragmentation-induced shocks and their incidence on prices require a careful calibration of our monetary responses. In this respect, our communication needs to acknowledge the uncertainty and trade-offs we face while giving a clear sense of how we will react depending on the incoming data. This can be done by making use of scenario analysis and providing clarity about our reaction function, as emphasised recently by President Lagarde.^[30]

Third, instead of building walls, we must forge unity. Even as political winds shift, central banks should strengthen international cooperation where possible. Through forums such as those provided by the BIS and the Financial Stability Board, we can keep open channels of cooperation that transcend borders. Our work on cross-border payments stands as proof of this commitment in line with the G20 Roadmap^[31]. The ECB is pioneering a cross-currency settlement service through TARGET Instant Payment Settlement (TIPS) – initially linking the euro, the Swedish krona and the Danish krone. We are exploring connections between TIPS and other fast-payment systems globally, both bilaterally and on the basis of a multilateral network such as the BIS’ Project Nexus.^[32]

And fourth, central banks must enhance their capacity to address financial stability risks arising from fragmentation. The potential for sudden stops in capital flows, payment disruptions and volatility in currency markets requires robust contingency planning and crisis management frameworks. Global financial interlinkages and spillovers highlight the importance of preserving and further reinforcing the global financial safety net so that we can swiftly and effectively address financial stress, which is more likely to emerge in a fragmenting world.^[33]

In fact, the lesson from the 1930s is that international coordination is key to avoiding protectionist snowball effects, where tit-for-tat trade barriers multiply as each country seeks to direct spending to merchandise produced at home rather than abroad.^[34] In order to avoid this, the G20 countries committed to preserving open trade could call an international trade conference to avoid beggar-thy-neighbour policies^[35] and instead agree on other measures, such as macroeconomic policies that can support the global economy in this period of uncertainty and contribute to reduce global imbalances.

Let me finally emphasise that the current situation also has important implications for the euro area. If the EU upholds its status as a reliable partner that defends trade openness, investor protection, the rule of law and central bank independence, the euro has the potential to play the role of a global public good. This requires a deep, trusted market for internationally accepted euro debt securities. That is why policy efforts to integrate and deepen European capital markets must go hand in hand with efforts to issue European safe assets.^[36]

Conclusion

Let me conclude.

As we stand at this crossroads of global fragmentation, we must confront an uncomfortable truth: we are drifting toward a fractured economic and financial landscape where trust is eroded and alliances are strained.

Central banks now face a double challenge: to be an anchor of stability in turbulent economic waters while reimagining their role in a world where multiple economic blocs are forming. The question is not whether we adapt, but how we mitigate the costs of fragmentation without sacrificing the potential of global integration.

Our greatest risk lies not in the shocks we anticipate, but in the alliances we neglect, the innovations we overlook and the common ground we fail to find. The future of global prosperity hinges on our ability to use fragmentation as a catalyst to reinvent the common good.

MIL OSI Europe News –

April 29, 2025

MIL-OSI: Annual report and financial statements for the period ended 31 December 2024

Source: GlobeNewswire (MIL-OSI)

OCTOPUS FUTURE GENERATIONS VCT PLC

Annual report and financial statements for the period ended 31 December 2024

Octopus Future Generations VCT plc (‘Future Generations VCT’ or the ‘Company’) is backing businesses that aim to address some of society’s biggest challenges, providing an opportunity for investors to share in the growth of ambitious, purpose‑driven companies.

The Company is managed by Octopus AIF Management Limited (the ‘Manager’), which has delegated investment management to Octopus Investments Limited (‘Octopus’ or ‘Portfolio Manager’) via its investment team Octopus Ventures.

Chair’s statement

I am pleased to present the financial report and audited accounts for the Company for the 18 months to 31 December 2024.

I would like to welcome all of our new shareholders to the Company. Future Generations VCT invests in exciting early-stage companies which aspire to address current environmental and societal issues. In 2023, the Board reviewed and approved a proposal to move the Company’s year end from 30 June to 31 December. As a result, shareholders are receiving this annual report covering an extended 18-month period and will thereafter receive a half-year report as at June, and annual report and audited financial statements for the years ending December thereafter.

The NAV per share at 31 December 2024 was 88.8p, which represents a net decrease of 5.5p per share from 30 June 2023. In the 18 months to 31 December 2024, we utilised £10.1 million of our cash resources, including £8.2 million which was invested into 16 new and follow‑on opportunities. The cash balance of £20.1 million (excluding cash awaiting allotment) as at 31 December 2024 represents 42% of net assets at that date. The loss made in the period to 31 December 2024 was £2.9 million. This decline is reflective of some company specific performance challenges and the difficult funding conditions in the early-stage space which have led to downward movements in some valuations. Given the Company is still a relatively young VCT, many of its portfolio companies are at the beginning of their journey and will likely require further funding to succeed, so it is to be expected to see under performance or even failures before any growth in value of companies which are ultimately successful. The decline is also accentuated by the running costs of the Company exceeding returns from investments, which is to be anticipated at this stage.

We look forward to deploying further capital into attractive new investment opportunities, and we ultimately intend the profile of the Company to comprise 80% to 90% in VCT qualifying investments and 10% to 20% in permitted non-VCT qualifying investments or cash.

Fundraise
We raised £3.6 million in the fundraise which closed on 31 October 2024. The 2023/2024 VCT fundraise market was highly competitive, ranking as the third highest on record with £882 million raised. In this environment, newer VCTs such as ours faced challenges in raising funds, as we compete with more established funds.

On 3 February 2025, to further support the Company’s growth, the Board launched an initial offer to raise up to £5 million. The offer closed for new applications on 1 April 2025 for the 2024/2025 tax year having successfully raised £5.0 million.

As investors will be aware, the intention is to invest in businesses which meet one of three key themes, which we hope will demonstrate excellent investment prospects as well as having the potential to transform the world we live in for the better.

VCT status
In November 2023, a ten-year extension was announced to the ‘sunset clause’ (a retirement date for the VCT scheme), meaning that VCT tax reliefs will be available until 5 April 2035. This extension passed through Parliament in February 2024 and on 3 September 2024 His Majesty’s Treasury brought the extension into effect through The Finance Act 2024.

Board of Directors
As announced in the half-yearly report to 31 December 2023, Emma Davies announced her retirement from the Board of Directors with effect from 31 March 2024 and Ajay Chowdhury was appointed with effect from 1 March 2024 and was elected by shareholders at the Annual General Meeting (AGM) held in December. We are already benefiting from his extensive experience in the early-stage venture ecosystem.

All the other Directors have indicated their willingness to remain on the Board and will be seeking re-election at the AGM.

Portfolio Manager
In September 2024, Octopus Titan VCT PLC, a fund which the Company has co-invested alongside to date, announced a review of strategy, due to the ongoing performance issues it has faced. This review (which benefits from independent external advice) is ongoing, and when concluded, the results will be shared with the Board of the Company and via any public announcements that the Board of Octopus Titan VCT PLC may make.

During this period, the investment team has prioritised much of its resource towards those portfolio companies which they believe have the potential to drive the greatest returns. This has affected your Company’s investment rate into new opportunities.

In the meantime, there have been a significant number of leavers from the broader Octopus Ventures team which invests capital from both the Company and other funds under management. Simon King, Octopus’ Lead Fund Manager for Future Generations, has unfortunately resigned to pursue a new opportunity after 13 years with Octopus. He will continue to take an active role as Lead Fund Manager of the Company until late summer. I would like to take this opportunity to thank Simon for his contribution and to wish him well for the future. We will provide you with updates in due course regarding his potential successor.

Erin Platts was appointed as new Chief Executive Officer (CEO) of Octopus Ventures in January 2025. Previously, she was CEO of HSBC Innovation Banking UK, formerly Silicon Valley Bank UK and worked at the heart of the UK and European tech ecosystem. Erin will be looking to scale the Octopus Ventures business, including ensuring there is appropriate investment and portfolio management resource to support the ongoing success of the Company.

AGM
The AGM will take place on 4 June 2025 from 10am and will be held at 33 Holborn, London EC1N 2HT. Full details of the business to be conducted at the AGM are given in the Notice of the AGM. We will have a Portfolio Manager’s update at the AGM, supported by a filmed update from the Portfolio Manager which will be available on the website at www.octopusinvestments.com/futuregenvct/.

Shareholders’ views are important, and the Board encourages shareholders to vote on the resolutions within the Notice of the AGM using the proxy form, or electronically at www.investorcentre.co.uk/eproxy. The Board has carefully considered the business to be approved at the AGM and recommends shareholders to vote in favour of all the resolutions being proposed, as the Board will be doing.

Outlook
In the 18-month reporting period, the sharpest decline in NAV was seen in the first half of 2024 with a 7.1% drop. This was reflective of some of the portfolio companies struggling to scale, secure customer wins and successfully fundraise, meaning they were not achieving the milestones set at the time the Company invested. With companies not able to prove their business models, we will unfortunately see some fail. The Board is mindful that such performance is not an unusual outcome for a VCT at this stage of its investment life cycle, with any failures likely preceding valuation growth which is usually expected once the portfolio matures. The portfolio has been operating in a volatile macro environment since the Company launched and global geo-political and economic pressures continue to hamper some of their growth plans. However, we are satisfied to see a stabilisation in the NAV, with the portfolio showing a positive return in the six months from June to December 2024.

The Mergers and Acquisitions (M&A) environment has started to thaw with startups experiencing the highest annual M&A transaction levels since 2019¹. We are delighted to have been able to realise the Company’s first full and partial exits in the reporting period. These exits within just three years of launch we hope provide validation of Future Generations VCT’s investment strategy, demonstrating the ability of Octopus to identify and back high-potential companies while delivering early returns to the VCT and brings confidence that it is well positioned to generate long-term, sustainable value for shareholders.

The long-term target is to pay an annual dividend of 5% of the NAV. However, given the expected holding period of target portfolio companies and restrictions imposed on VCTs, it is very unlikely that the Company will be able to pay dividends before 2026. During this time, any growth in value will increase the net asset value of the Company. Dividends are likely to be generated from successful exits, so the Company is unlikely to pay significant dividends until more portfolio companies have time to mature and realisations are secured.

I would like to conclude by thanking both my Board colleagues and the Octopus team on behalf of all shareholders for their hard work. The Board’s long-term view of early-stage venture capital remains positive, and I am looking forward to seeing what 2025 brings for your Company.

Helen Sinclair
Chair

¹ https://carta.com/uk/en/data/state-of-private-markets-q4-2024/#key-trends

Portfolio Manager’s review

At Octopus, our focus is on managing your investments and providing investors with clear and transparent communication. Our annual and half-yearly updates are designed to keep you informed about the progress of your investment.

Focus on Future Generations VCT’s performance
The NAV per share at 31 December 2024 was 88.8p, which represents a decrease in NAV of 5.5p per share versus a NAV of 94.3p per share as at 30 June 2023. The Company invests in three key areas that we believe demonstrate excellent investment prospects and have potential to transform our world for the better.

Below is a breakdown of the 36 investments held as at 31 December 2024, showing the proportion and value of the portfolio in each investment theme:

Proportion by number of portfolio companies in each theme
Revitalising healthcare: 53%
Empowering people: 28%
Building a sustainable planet: 19%

Value of the portfolio in each theme
Revitalising healthcare: £13.3m
Empowering people: £8.0m
Building a sustainable planet: £5.5m

The decline in valuation over the 18-month period has been in large part driven by the downward valuation movements across 11 companies which saw a collective decrease in valuation of £7.9 million. The businesses which contributed most significantly to this were Tympa Health, Pear Bio and Elo Health. Tympa Health over‑invested in growth and had to make significant cost cuts and changes to senior management whilst running a fundraise process. It has successfully concluded a further investment round, but at a reduced valuation and the Company’s shareholding now sits behind a large preference stack, meaning that other investors get paid back first before the Company would see any returns. Pear Bio also had to significantly reduce its cash burn but has limited runway and needs to further fundraise, so the valuation has been reduced to reflect the risk to its future. Elo Health struggled to find a market fit and execute on the investment thesis, so to extend its cash runway it had to raise an investment round at a reduced valuation. These three valuation movements account for 86% of the total decline in the reporting period. The total investment cost of these three companies was £7 million.

Octopus Ventures believes that some of the companies which have seen decreased valuations in the 18 months have the potential to overcome the issues they face and get their growth plans back on track. We will continue to work with them to help them realise their ambitions. In some cases, if a company is achieving its performance milestones, the support offered could include further funding, to ensure a business has the capital it needs to execute on its strategy. At this early stage of the Company’s life cycle, it is to be anticipated that failures will likely precede valuation growth, which takes longer as the portfolio companies must achieve their agreed milestones and mature.

Conversely, 12 companies saw an increase in unrealised valuation in the period, delivering a collective increase in valuation of £4.4 million. These valuation increases reflect businesses which have successfully concluded further funding rounds, grown revenues or met certain important milestones. Notable strong performers in the portfolio include Apheris and Manual, both of which have shown impressive capital efficient growth. These strong performers demonstrate that there are opportunities available for companies to scale.

The interest on Future Generation’s uninvested cash reserves was £1.4 million in the 18 months to 31 December 2024 (30 June 2023: gain of £0.4 million), driven by returns on money market funds. The Board’s objective for these investments is to generate sufficient returns through the cycle to cover costs, at limited risk to capital.

Disposals
In September 2024, as part of a Series A funding round, Octopus sold a portion of the Company’s shares in Neat. Then in November, Pluxee (a global leader in employee benefits) acquired Cobee. The two exits combined offer the Company a return of 1.5x, including contingent deferred proceeds.

Overview of investments
The Company completed 16 investments in the 18 months to 31 December 2024 (comprising a total of £8.2 million) and 4 further investments after the reporting date totalling £2.4 million. More information on some of these businesses can be found below:

A selection of our completed investments

Revitalising Healthcare

Pencil Biosciences is a gene editing technology platform.

Awell Health automates routine clinical tasks, synchronising data between systems and driving seamless coordination between care teams and patients.

Cellvoyant is an artificial intelligence (AI) first biotechnology company creating novel stem cell-based therapies for chronic diseases.

Manual provides easy access to advice and medical support for diagnosis, custom treatment plans and holistic care to induce long-term behaviour change.

Nanosyrinx has developed a targeted biologic therapeutic delivery platform (a nano-syringe).

Empowering people

Correcto is an AI writing and grammar tool for the Spanish language.

Remofirst is an Employer of Record (EOR) and compliance platform that allows companies to hire and pay employees globally.

Swiipr has developed a digital payments platform specifically for the airline industry.

Building a sustainable planet

Metris Energy has created a platform that allows landlords of multi-unit buildings to monetise modular renewable energy projects through a single billing platform to charge tenants.

Drift is designing sailing vessels and routing algorithms required to capture deep water wind energy and convert it into onboard hydrogen gas for transportation back to shore using a fully integrated desalination, electrolysis and storage system.

Q&A

Q. How do you value a portfolio company?
A. Future Generations VCT’s unquoted portfolio companies are valued in accordance with UK Generally Accepted Accounting Practice (UK GAAP) accounting standards and the International Private Equity and Venture Capital (IPEV) valuation guidelines.

This means we value the portfolio at fair value, with all companies being valued at least twice yearly, for our half-year (June) and annual accounts (December).

Q. What do you mean by ‘fair value’?
A. When we say fair value, we mean the price we expect people would be willing to buy or sell an asset for, assuming they understand the asset and market conditions, are knowledgeable parties, act independently, and that the transaction is carried out under the normal course of business (i.e. is not rushed and proper marketing has taken place).

Q. Who values the portfolio, what is the process and what oversight is there to make sure this is right?
A. The Octopus Investment Managers involved with the portfolio companies, either in the capacity of a Director or observer on the board, or the primary contact, will provide commentary including, but not limited to, recent developments with the portfolio and the wider market in which they operate, progress towards milestones, management team changes, board dynamics and technical progress. This is combined with the latest available financial accounts and budget provided by the portfolio company which will be summarised into Key Performance Indicators (KPIs).

From this information, a member of the separate Valuations team drafts the initial proposal. This will highlight any material changes, key asset level assumptions used and KPIs, and discuss portfolio company performance as well as the rationale underpinning the selected valuation methodology. A peer review exercise then takes place, where the proposals are challenged and reviewed. The peer reviewer is an investment professional from the Fund Manager (typically the Lead Fund Manager) who has not been involved in preparing the valuations.

This will then be reviewed and approved by the Octopus Valuations Committee which comprises individuals with appropriate expertise and experience in valuations. Those individuals are not involved in the investment decisions and as such can independently review and challenge. The Future Generations VCT Board will then meet to discuss them in detail, revise as necessary and ultimately approve them.

There are also more valuation checkpoints throughout the year in advance of allotments and other share-related transactions, which means that the portfolio’s valuation is reviewed to ensure NAV is fairly represented prior to these corporate actions.

As part of our continuous improvement processes, we periodically review the actual realised value of our investments compared to their last holding value and refine our valuation methodologies accordingly. This, combined with the high proportion of valuations that are based on the terms of further funding rounds led by new external investors, firmly underpins the robustness of the valuation process.

Valuations
The table illustrates the split of valuation methodology (shown as a percentage of portfolio value and number of companies). ‘External price’ includes valuations based on funding rounds that typically completed in the last 18 months to the period end or shortly after the period end, and exits of companies where terms have been agreed with an acquirer. ‘Multiples’ is predominantly used for valuations that are based on a multiple of revenues for portfolio companies. Where there is uncertainty around the potential outcomes available to a company, a probability weighted ‘scenario analysis’ is considered.

Valuation methodology	By value	By number of companies
Multiples	18%	3
External price	44%	12
Scenario analysis	14%	7
Milestone analysis	24%	10
Write-off	—	4

Portfolio case studies

CoMind
CoMind is building revolutionary brain sensing technologies.

Their mission is to redefine the way the brain is measured and treated at every stage of care. One of the first applications of CoMind’s core technology is in measuring intracranial brain pressure using an adhesive sensor and advanced signal processing. This will be a step change from the current standard of having to drill through the skull to measure intracranial pressure in patients impacted by traumatic brain injury, stroke, and/or other neurocritical conditions.

While other companies are trying to create noninvasive technology in this sector, we believe CoMind has a distinct competitive advantage. CoMind has developed an advanced optical sensing technique that has opened up new possibilities in monitoring brain health. Unlike existing methods, CoMind’s technology is more similar to the “LiDAR” (Light Detection and Ranging) systems used in self-driving cars. This allows CoMind’s devices to give a unique, detailed view of brain health, helping doctors deliver more personalised and targeted treatments to patients at every stage of care.

>250 subjects were measured in 2024.
Several devices are currently being used in hospitals for clinical trials.

Swiipr
Passengers get quick, easy-to-use compensation, airlines save on processing costs while improving service.

When flights are disrupted, compensating passengers is a hassle for both airlines and travellers. Swiipr’s platform simplifies this by automating payment verification and processing through a system designed specifically for airlines. The company provides passengers with virtual and physical prepaid cards, offering instant, flexible spending compared to outdated paper vouchers or slow payments. Swiipr also supports airlines with solutions for crew, operational, and crisis payments, enabling fast, direct payouts to staff. Passengers get quick, easy-to-use compensation, airlines save on processing costs while improving service, and retailers benefit from instant payment settlement. Swiipr also integrates with airline Customer Relationship Management systems, making it an essential partner for the industry.

Octopus Ventures is excited about Swiipr’s travel-focused digital payments solution and its potential to revolutionise how airlines handle pay-outs. Swiipr’s innovative product aims to transform compensation payments and speed up management processes for airlines and beyond. By enabling digital payments, Swiipr seeks to boost efficiency, enhance customer experiences, and provide automated processes that are transparent and compliant with regulations.

With over 500 million passengers affected by travel disruptions each year, simplifying the path to compensation has the potential to significantly improve customer satisfaction, build trust, and foster loyalty in the industry.

Only 1–2% of disrupted passengers currently receive compensation.
Billions of dollars lost by passengers in outdated, inefficient pay-out processes every year.
Pay360 Payment Award winner: Best B2B Programme and Best Customer Facing Experience at the 2024 awards.

DRIFT
DRIFT aims to drive the clean energy transition worldwide with high-performance sailing vessels that harness deep ocean wind to produce green hydrogen at sea and deliver it globally.

It does this using a unique, AI-enabled vessel routing system that enables the vessels to find and stay in optimum weather conditions. The growing demand for clean hydrogen to accelerate the decarbonisation of sectors such as heavy industry, transportation and manufacturing is sparking innovation in the sector. DRIFT’s solution is mobile, resilient and works outside of existing infrastructure. The company is developing renewable energy partnerships that will benefit coastal and island communities around the world.

DRIFT is leading the way in developing a truly innovative new class of mobile renewable energy, building the world’s first net-positive ships and unlocking a new era of clean fuel generation capable of covering 70% of the globe. The company’s technology uniquely unlocks the planet’s greatest resource, overcoming supply challenges and enabling a fair and equitable clean energy transition.

€10 trillion: Goldman Sachs estimates that the green hydrogen market could reach €10 trillion by 2050.

24%: Bank of America predicts that clean hydrogen could provide 24% of global energy needs by 2050.

COP 28 winner: DRIFT is a COP 28 award-winning DeepTech company and winner of the Monaco Prize for Innovation in Renewable Hydrogen and Transportation 2024.

Top 10 investments
Here, we set out the cost and valuation of the top 10 holdings, which account for over 58% of the value of the portfolio.

Portfolio company	Investment cost	Valuation at 31 December 2024	Investment Theme
1. HelloSelf Limited	£2.6m	£2.6m	Revitalising healthcare
2. Remofirst, Inc	£1.2m	£1.7m	Empowering people
3. Infinitopes Ltd	£1.6m	£1.6m	Revitalising healthcare
4. Neat SAS	£0.6m	£1.5m	Building a sustainable planet
5. TYTN Ltd (t/a TitanML)	£0.5m	£1.5m	Building a sustainable planet
6. Apheris AI GmbH	£1.5m	£1.5m	Empowering people
7. Menwell Limited (t/a Manual)	£0.9m	£1.5m	Revitalising healthcare
8. Mr & Mrs Oliver Ltd (t/a Skin + Me)	£1.0m	£1.4m	Revitalising healthcare
9. Intrinsic Semiconductor Technologies Ltd	£0.9m	£1.2m	Empowering people
10. CoMind Technologies Ltd	£0.8m	£1.0m	Revitalising healthcare

Top 10 investments in detail¹

HelloSelf Limited
A digital, personalised psychological therapy and coaching platform.
www.helloself.com

Initial investment date:	January 2023
Investment cost:	£2.6m
	(2023: £2.6m)
Valuation:	£2.6m
	(2023: £2.6m)
Last submitted accounts:	31 March 2024
Turnover:	Not available² (2023: Not available²)
Profit/(loss) before tax:	Not available²
	(2023: Not available²)
Net assets:	£(15.5)m
	(2023: £(9.8)m)
Valuation methodology:	Calibration

2
Remofirst, Inc.
Global payroll and compliance system for remote teams.
www.remofirst.com

Initial investment date:	February 2024
Investment cost:	£1.2m
	(2023: n/a)
Valuation:	£1.7m
	(2023: n/a)
Last submitted accounts:	Not available²
Turnover:	Not available²
	(2023: Not available²)
Profit/(loss) before tax	Not available²
	(2023: Not available²)
Net assets:	Not available²
	(2023: Not available²)
Valuation methodology:	Last Round

3
Infinitopes Ltd
Has built an antigen discovery platform to develop cancer vaccines that provide better treatment outcomes.
www.infinitopes.com

Initial investment date:	December 2022
Investment cost:	£1.6m
	(2023: £1.6m)
Valuation:	£1.6m
	(2023: £1.6m)
Last submitted accounts:	31 December 2023
Turnover:	Not available²
	(2023: Not available²)
Profit/(loss) before tax	Not available²
	(2023: Not available²)
Net assets:	£9.3m
	(2023: £8.1m)
Valuation methodology:	Last Round

4
Neat SAS
An embedded insurance platform that gives merchants the ability to provide insurance bundles to their customers at a competitive rate.
mobility.neat.eu

Initial investment date:	November 2022
Investment cost:	£0.6m
	(2023: £0.8m)
Valuation:	£1.5m
	(2023: £0.8m)
Last submitted accounts:	Not available²
Turnover:	Not available²
	(2023: Not available²)
Profit/(loss) before tax:	Not available²
	(2023: Not available²)
Net assets:	Not available²
	(2023: Not available²)
Valuation methodology:	Last round

TYTN Ltd (t/a TitanML)
An artificial intelligence company which is developing a one-stop-shop for Natural Language Processing AI Optimisation, allowing enterprises to generate value from their data.
www.titanml.co

Initial investment date:	February 2023
Investment cost:	£0.5m
	(2023: £0.5m)
Valuation:	£1.5m
	(2023: £0.5m)
Last submitted accounts:	30 April 2024
Turnover:	Not available²
	(2023: Not available²)
Profit/(loss) before tax:	Not available²
	(2023: Not available²)
Net assets:	£1.5m
	(2023: £2.0m)
Valuation methodology:	Last Round

Apheris AI GmbH
An end-to-end federated learning platform enabling data scientists to conduct analysis over sensitive data without compromising the privacy or security of the data subjects.
www.apheris.com

Initial investment date:	November 2022
Investment cost:	£1.5m
	(2023: £1.2m)
Valuation:	£1.5m
	(2023: £1.2m)
Last submitted accounts:	Not available²
Turnover:	Not available²
	(2023: Not available²)
Profit/(loss) before tax:	Not available²
	(2023: Not available²)
Net assets:	Not available²
	(2023: Not available²)
Valuation methodology:	Last round

Menwell Limited (t/a Manual)
Making high-quality healthcare more accessible and stigma-free
www.manual.co

Initial investment date:	May 2024
Investment cost:	£0.9m (2023: n/a)
Valuation:	£1.5m
	(2023: n/a)
Last submitted accounts:	31 December 2023
Turnover:	£54.7m (2023: £22.4m)
Profit/(loss) before tax:	£(7.9)m (2023: £(10.6)m)
Net assets:	£11.8m (2023: £8.0m)
Valuation methodology:	Last round

8
Mr & Mrs Oliver Ltd (t/a Skin + Me)
A direct to consumer, personalised skin care company.
www.skinandme.com

Initial investment date:	December 2022
Investment cost:	£1.0m
	(2023: £1.0m)
Valuation:	£1.4m
	(2023: £1.3m)
Last submitted accounts:	31 August 2023
Turnover:	£28.7m
	(2023: £14.3m)
Profit/(loss) before tax:	£1.8m
	(2023: £(3.3)m)
Net assets:	£12.8m
	(2023: £(0.7)m)
Valuation methodology:	Revenue Multiple

9
Intrinsic Semiconductor Technologies Ltd
Solid state memory technology that is simple to integrate and faster than current alternatives like Flash.
www.intrinsicsemi.com

Initial investment date:	December 2023
Investment cost:	£0.9m
	(2023: n/a)
Valuation:	£1.2m
	(2023: n/a)
Last submitted group accounts:	31 December 2023
Turnover:	Not available² (2023: Not available²)
Profit/(loss) before tax:	Not available² (2023: Not available²)
Consolidated net assets:	£4.0m
	(2023: £5.5m)
Valuation methodology:	Scenario Analysis

CoMind Technologies Ltd
Development of non-invasive brain sensing technology for monitoring of medical conditions.
comind.io

Initial investment date:	November 2023
Investment cost:	£0.8m
	(2023: n/a)
Valuation:	£1.0m
	(2023: n/a)
Last submitted group accounts:	31 December 2023
Turnover:	Not available² (2023: Not available²)
Profit/(loss) before tax:	Not available² (2023: Not available²)
Net assets:	£17.1m
	(2023: £4.1m)
Valuation methodology:	Milestone Analysis

1. These are numbers per latest public filings. More recent figures have not yet been disclosed.
2. Information not publicly available.

Portfolio engagement
As part of our strategy, we require portfolio companies to put in place a Diversity and Inclusion policy (D&I) and an Anti-Harassment policy. We also engage with each company to help them understand their greenhouse gas (GHG) emissions and support them to take action to minimise them. You can see how we are progressing with these goals below, as at the date of this report:

D&I policy status
Policy in place: 100%

Engaged in monitoring 2023 greenhouse gas emissions¹
Signed up: 16
Introduced: 19
In progress: 1

¹ As of 31 December 2024, only 2023 carbon emissions data was available.

Outlook
Despite the declining NAV in the reporting period, we are reassured to see an increase in the NAV per share of the fund in the last six months. This, combined with the two profitable realisations in the period, is offering us early proof points of the Company’s investment strategy to deliver sustainable growth as it moves into its third year of deployment. With a more diversified portfolio, in terms of both stage and sector, this also offers a clearer path for the Company to enter a growth phase.

As is to be expected at this stage in the Company’s lifecycle, it has started to make its first follow-on investments into portfolio companies which are achieving their agreed milestones and successfully gaining new external lead funders. The Company made two follow-on investments in the reporting period and three after.

This strategy of reinvesting into existing portfolio companies aims to increase the Company’s stake in portfolio companies that have achieved market fit and are scaling successfully, supporting its overall growth plan. Along with further financial support, Octopus’ resources are directed in the most impactful way, both through Octopus-appointed non-executive Directors or monitors on the boards and our in-house People and Talent team. This team works directly with the portfolio company management teams, offering training and recruitment support to ensure the best talent pool is being explored to help drive success.

We are excited to have the opportunity to continue to scale the Company, support its ambition to make the world a better place for future generations, and hope to deliver attractive returns to shareholders.

Simon King
Partner and Lead Fund Manager for Future Generations VCT

Risks and risk management

The Board assesses the risks faced by Future Generations VCT, reviews the mitigating controls and monitors the effectiveness of these controls.

Emerging and principal risks, and risk management
The Board is mindful of the ongoing risks and will continue to make sure that appropriate safeguards are in place. The Board carries out a regular review of the risk environment in which the Company operates.

Emerging risks

The Board has considered emerging risks. The Board seeks to mitigate risks by setting policy, regularly reviewing performance and monitoring progress and compliance. In the mitigation and management of these risks, the Board applies the principles detailed in the Financial Reporting Council’s Guidance on Risk Management, Internal Control and Related Financial and Business Reporting.

The following are some of the potential emerging risks management and the Board are currently monitoring:

adverse changes in global macroeconomic environment;
challenging market conditions for private company fundraising and exits;
geo‑political instability; and
climate change.

Detailed below are the principal risks of Future Generations VCT, and the mitigating actions in relation to those risks.

Principal risks

*Risk*	*Mitigation*	*Change*
Investment performance:
The focus of Future Generations VCT investments is into early-stage, unquoted, small and medium‑sized VCT qualifying companies which, by their nature, entail a higher level of risk and shorter cash runway than investments in larger quoted companies.	Octopus has significant experience of investing in early-stage unquoted companies, and appropriate due diligence is undertaken on every new investment. A member of the Octopus Ventures team is appointed to the board of a portfolio company using a risk-based approach, considering the size of the company within the Future Generations VCT portfolio and the engagement levels of other investors. This arrangement, in conjunction with its Portfolio Talent team’s active involvement, allows Future Generations VCT to play a prominent role in a portfolio company’s ongoing development and strategy.	Increased exposures reflected in the previous period remain unchanged due to the difficult macro environment and challenging trading conditions for some portfolio companies continuing.
*Risk*	*Mitigation*	*Change*
VCT qualifying status:
Future Generations VCT is required at all times to observe the conditions for the maintenance of approved VCT status. The loss of such approval could lead to Future Generations VCT and its investors losing access to the various tax benefits associated with VCT status and investment.	Octopus tracks Future Generations VCT’s qualifying status throughout the period, and reviews this at key points, including at the point of investment and realisation. This status is reported to the Board at each Board meeting. The Future Generations VCT Board has also engaged external independent advisers to undertake an independent VCT status monitoring role.	VCT status monitoring by independent advisers continues to reduce the risk of an issue causing a loss of VCT status.
*Risk*	*Mitigation*	*Change*
Loss of key people:
The loss of key investment staff by the Portfolio Manager could lead to poor fund management and/or performance due to lack of continuity or understanding of Future Generations VCT.	The Portfolio Manager has a broad team experienced in and focused on early-stage investing. This mitigates the risk of any one individual with the required skill set and knowledge of venture capital investing, and the portfolio specifically, leaving. Key investment staff are also incentivised via the performance incentive fee.	The increase is attributed to the departure of key personnel from the Octopus Ventures team and risk exposure reflects a reduction in performance fees potentially increasing attrition.
*Risk*	*Mitigation*	*Change*
Operational:
The Future Generations VCT Board is reliant on the Portfolio Manager to manage investments effectively, and manage the services of a number of third parties, in particular the registrar, depositary and tax advisers. A failure of the systems or controls at Octopus or third‑party providers could lead to an inability to provide accurate reporting and accounting and to ensure adherence to VCT rules.	The Future Generations VCT Board reviews the system of internal controls, both financial and non-financial, operated by Octopus (to the extent the latter are relevant to Future Generations VCT’s internal controls). These include controls designed to make sure that Future Generations VCT assets are safeguarded and that proper accounting records are maintained.	No overall change in risk exposure on balance.
*Risk*	*Mitigation*	*Change*
Information security:
A loss of key data could result in a data breach and fines. The Future Generations VCT Board is reliant on Octopus and third parties to take appropriate measures to prevent a loss of confidential customer information.	Annual due diligence is conducted on third parties which includes a review of their controls for information security. Octopus has a dedicated Information Security team and a third party is engaged to provide continual protection in this area. A security framework is in place to help prevent malicious events. The appropriateness of mitigants in place are continuously reassessed to adapt to new risk exposures, such as those posed by artificial intelligence.	No overall change on balance, although cyber threat remains a significant risk area faced by all providers.
*Risk*	*Mitigation*	*Change*
Economic:
Events such as an economic recession, movement in interest rates, inflation and rising living costs could adversely affect some smaller companies’ valuations, as they may be more vulnerable to changes in trading conditions of the sectors in which they operate. This could result in a reduction in the value of Future Generations VCT assets.	Future Generations VCT aims to invest in a diverse portfolio of companies, across a range of sectors, which helps to mitigate against the impact on any one sector. Future Generations VCT also maintains adequate liquidity to make sure that it can continue to provide follow‑on investment to those portfolio companies which require it and which are supported by the individual investment case.	Increased exposures reflected in the previous periods remain as economic uncertainty persists through high inflation, high interest rates and other economic factors.
*Risk*	*Mitigation*	*Change*
Legislative:
A change to the VCT regulations could adversely impact Future Generations VCT by restricting the companies Future Generations VCT can invest in under its current strategy. Similarly, changes to VCT tax reliefs for investors could make VCTs less attractive and impact Future Generations VCT’s ability to raise further funds.	The Portfolio Manager engages with HM Treasury and industry bodies to demonstrate the positive benefits of VCTs in terms of growing early-stage companies, creating jobs and increasing tax revenue, and to help shape any change to VCT legislation.	Risk exposure has reduced following the extension of the sunset clause to 2035 being agreed.
*Risk*	*Mitigation*	*Change*
Liquidity:
The risk that Future Generations VCT’s available cash will not be sufficient to meet its financial obligations. Future Generations VCT invests into smaller unquoted companies, which are inherently illiquid as there is no readily available market for these shares. Therefore, these may be difficult to realise for their fair market value at short notice.	Future Generations VCT’s liquidity risk is managed on a continuing basis by Octopus in accordance with policies and procedures agreed by the Board. Future Generations VCT’s overall liquidity risks are monitored on a quarterly basis by the Board, with frequent budgeting and close monitoring of available cash resources. Future Generations VCT maintains sufficient investments in cash and readily realisable securities to meet its financial obligations. At 31 December 2024, these resources were valued at £20,084,000.	Risk exposures continue to increase, reflecting the potential knock-on effects of economic uncertainty, impacting fundraising and increasing the risk of disposal failure.

Viability statement

In accordance with the FRC UK Corporate Governance Code published in 2018 and provision 36 of the AIC Code of Corporate Governance, the Directors have assessed the prospects of Future Generations VCT over a period of five years, consistent with the expected investment holding period of an investor. A fundraise with an initial offer to raise up to £5 million was launched on 3 February 2025. The offer closed for new applications on 1 April 2025 for the 2024/2025 tax year having successfully raised £5 million. Under VCT rules, subscribing investors are required to hold their investment for a five‑year period in order to benefit from the associated tax reliefs. The Board regularly considers strategy, including investor demand for Future Generations VCT’s shares, and a five-year period is considered to be a reasonable time horizon for this.

The Board carried out a robust assessment of the emerging and principal risks facing Future Generations VCT and its current position. This includes risks which may adversely impact its business model, future performance, solvency or liquidity, and focused on the major factors which affect the economic, regulatory and political environment. Particular consideration was given to the Company’s reliance on, and close working relationship with, the Investment Manager. The principal risks faced by the Company and the procedures in place to monitor and mitigate them are set out above.

The Board has carried out robust stress testing of cash flows, which included assessing the resilience of portfolio companies, including the requirement for any future financial support.

The Board has additionally considered the ability of Future Generations VCT to comply with the ongoing conditions to make sure it maintains its VCT qualifying status under its current Investment policy.

Based on this assessment, the Board confirms that it has a reasonable expectation that Future Generations VCT will be able to continue in operation and meet its liabilities as they fall due over the five-year period to 31 December 2029. The Board is mindful of the ongoing risks and will continue to make sure that appropriate safeguards are in place, in addition to monitoring the cash flow forecasts to make sure Future Generations VCT has sufficient liquidity.

Directors’ responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report and the Financial Statements in accordance with applicable law and regulations. They are also responsible for ensuring that the annual report and financial statements include information required by the UK Listing Rules of the Financial Conduct Authority.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (GAAP), including Financial Reporting Standard 102 – The Financial Reporting Standard Applicable in the United Kingdom and Republic of Ireland (FRS 102), United Kingdom accounting standards and applicable law. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and
prepare a Strategic Report, Directors’ Report and Directors’ Remuneration Report which comply with the requirements of the Companies Act 2006.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as each of the Directors is aware:

there is no relevant audit information of which the Company’s auditor is unaware; and
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Directors are responsible for preparing the annual report and financial statements in accordance with applicable law and regulations. Having taken advice from the Audit Committee, the Directors are of the opinion that this report as a whole provides the necessary information to assess the Company’s performance, business model and strategy and is fair, balanced and understandable.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors confirm that, to the best of their knowledge:

the financial statements, prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
the annual report and financial statements (including the Strategic Report), give a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

On behalf of the Board

Helen Sinclair
Chair

Income statement

	18 months to 31 December 2024			Year to 30 June 2023
	Revenue	Capital	Total	Revenue	Capital	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Gain on disposal of fixed asset investments	—	1,382	1,382	—	—	—
Net loss on valuation of fixed asset investments	—	(3,564)	(3,564)	—	(6)	(6)
Investment management fee	(345)	(1,035)	(1,380)	(174)	(522)	(696)
Investment income	1,427	—	1,427	424	—	424
Other expenses	(759)	—	(759)	(500)	—	(500)
Earnings/(loss) before tax	323	(3,217)	(2,894)	(250)	(528)	(778)
Tax	—	—	—	—	—	—
Earnings/(loss) after tax	323	(3,217)	(2,894)	(250)	(528)	(778)
Earnings/(loss) per share – basic and diluted	0.6p	(6.3)p	(5.7)p	(0.6)p	(1.3)p	(1.9)p

The ‘Total’ column of this statement is the profit and loss account of Future Generations VCT; the supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing operations.
Future Generations VCT has only one class of business and derives its income from investments made in shares and securities and from bank and money market funds.

Future Generations VCT has no other comprehensive income for the period.

The accompanying notes form an integral part of the financial statements.

Balance sheet

	As at 31 December 2024		As at 30 June 2023
	£’000	£’000	£’000	£’000
Fixed asset investments		26,769		24,895
Current assets:
Debtors	1,166		379
Applications cash¹	100		370
Cash at bank	112		152
Money market funds	19,972		20,140
		21,350		21,041
Creditors: amounts falling due within one year	(196)		(518)
Net current assets		21,154		20,523
Net assets		47,923		45,418
Share capital		54		48
Share premium		51,854		46,461
Capital reserve realised		(328)		(640)
Capital reserve unrealised		(3,526)		3
Revenue reserve		(131)		(454)
Total equity shareholders’ funds		47,923		45,418
NAV per share		88.8p		94.3p

Cash received from investors but not yet allotted.

The accompanying notes form an integral part of the financial statements.

The statements were approved by the Directors and authorised for issue on 28 April 2025 and are signed on their behalf by:

Helen Sinclair
Chair
Company No: 13750143

Statement of changes in equity

	Share capital £’000	Share premium £’000	Capital reserve realised¹ £’000	Capital reserve unrealised £’000	Revenue reserve¹ £’000	Total £’000
As at 1 July 2023	48	46,461	(640)	3	(454)	45,418
Comprehensive income for the period:
Management fees allocated as capital expenditure	—	—	(1,035)	—	—	(1,035)
Current year gain on disposal of fixed asset investments	—	—	1,382	—	—	1,382
Net loss on fair value of fixed asset investments	—	—	—	(3,564)	—	(3,564)
Gain after tax	—	—	—	—	323	323
Total comprehensive loss for the period	—	—	347	(3,564)	323	(2,894)
Contributions by and distributions to owners:
Share issue	6	5,506	—	—	—	5,512
Share issue costs	—	(113)	—	—	—	(113)
Total contributions by and distributions to owners	6	5,393	—	—	—	5,399
Other movements:
Prior year fixed asset loss unrealised	—	—	(35)	35	—	—
Total other movements	—	—	(35)	35	—	—
Balance as at 31 December 2024	54	51,854	(328)	(3,526)	(131)	47,923

	Share capital £’000	Share premium £’000	Capital reserve realised¹ £’000	Capital reserve unrealised £’000	Revenue reserve¹ £’000	Total £’000
As at 1 July 2022	33	31,572	(118)	9	(204)	31,292
Comprehensive income for the period:
Management fees allocated as capital expenditure	—	—	(522)	—	—	(522)
Net loss on fair value of fixed asset investments	—	—	—	(6)	—	(6)
Loss after tax	—	—	—	—	(250)	(250)
Total comprehensive loss for the period	—	—	(522)	(6)	(250)	(778)
Contributions by and distributions to owners:
Shares issued	15	15,164	—	—	—	15,179
Share issue costs	—	(275)	—	—	—	(275)
Total contributions by and distributions to owners	15	14,889	—	—	—	14,904
Balance as at 30 June 2023	48	46,461	(640)	3	(454)	45,418

Reserves are available for distribution, subject to the restrictions.

The accompanying notes form an integral part of the financial statements.

Cash flow statement

	18 months to 31 December	Year to 30 June
	2024	2023
	£’000	£’000
Cash flows from operating activities
Loss before tax¹	(2,894)	(778)
Decrease/(increase) in debtors	173	(325)
Decrease in creditors	(52)	(103)
Gain on disposal of fixed assets	(1,382)	—
Loss on valuation of fixed asset investments	3,564	6
Outflow from operating activities	(591)	(1,200)
Cash flows from investing activities
Purchase of fixed asset investments	(8,162)	(23,238)
Sale of fixed asset investments	3,146	—
Outflow from investing activities	(5,016)	(23,238)
Cash flows from financing activities
Movement in applications account	(270)	(1,544)
Proceeds from share issues	5,512	15,179
Share issue costs	(113)	(275)
Inflow from financing activities	5,129	13,360
Decrease in cash and cash equivalents	(478)	(11,079)
Opening cash and cash equivalents	20,662	31,741
Closing cash and cash equivalents	20,184	20,662
Cash and cash equivalents comprise
Cash at bank	112	152
Money market funds	19,972	20,140
Applications cash	100	370
Closing cash and cash equivalents	20,184	20,662

Loss before tax includes cashflows from dividends of £1.4 million (2023: £0.4 million).

The accompanying notes form an integral part of the financial statements.

Notes to the financial statements

1. Principal accounting policies

Octopus Future Generations VCT plc (‘Future Generations VCT’) is a Public Limited Company (plc) incorporated in England and Wales and its registered office is at 6th Floor, 33 Holborn, London EC1N 2HT.

Future Generations VCT has been approved as a Venture Capital Trust by HMRC under Section 259 of the Income Taxes Act 2007. The shares of Future Generations VCT were first admitted to the Official List of the UK Listing Authority and trading on the London Stock Exchange on 5 April 2022 and can be found under the TIDM code OFG. Future Generations VCT is premium listed.

The principal activity of Future Generations VCT is to invest in a diversified portfolio of UK smaller companies in order to generate capital growth over the long term as well as an attractive tax-free dividend stream.

The financial statements are presented in GBP (£) to the nearest £’000. The functional currency is also GBP (£). Some accounting policies have been disclosed in the respective notes to the financial statements.

Basis of preparation
The financial statements have been prepared on a going concern basis under the historical cost convention, except for the measurement at fair value of certain financial instruments, and in accordance with UK Generally Accepted Accounting Practice (GAAP), including Financial Reporting Standard 102 – ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (FRS 102), the Companies Act 2006 and the Statement of Recommended Practice (SORP) ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts (July 2022)’.

2. Investment income
Accounting policy

Investment income comprises interest earned on money market funds. Dividend income is shown net of any related tax credit. Dividends receivable are brought into account when Future Generation’s right to receive payment is established and there is no reasonable doubt that payment will be received. Fixed returns on debt and money market funds are recognised so as to reflect the effective interest rate, provided there is no reasonable doubt that payment will be received in due course.

Disclosure

	18 months to
	31 December 2024	30 June 2023
	£’000	£’000
Money market funds	1,427	424
Total investment income	1,427	424

3. Investment management fees
Accounting policy

For the purposes of the revenue and capital columns in the Income Statement, the management fee has been allocated 25% to revenue and 75% to capital, in line with the Board’s expected long-term return in the form of income and capital gains respectively from Future Generations VCT’s investment portfolio.

Disclosure

	18 months to 31 December 2024			Year to 30 June 2023
	Revenue	Capital	Total	Revenue	Capital	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Investment
management fee	345	1,035	1,380	174	522	696
Total	345	1,035	1,380	174	522	696

The Portfolio Manager provides investment management services through agreements with Octopus AIF Management Limited and Future Generations VCT. It also provides accounting and administration services to Future Generations VCT under a Non-Investment Services Agreement (NISA). No compensation is payable if the agreement is terminated by either party, if the required notice period is given. The fee payable, should insufficient notice be given, will be equal to the fee that would have been paid should continuous service be provided, or the required notice period was given.

4. Other expenses
Accounting policy

Other expenses are accounted for on an accruals basis and are charged wholly to revenue.

The transaction costs incurred when purchasing or selling assets are written off to the Income Statement in the period that they occur.

	18 months to	Year to
	31 December	30 June
	2024	2023
	£’000	£’000
NISA fees	213	122
Directors’ remuneration¹	157	77
Audit fees²	78	63
Directors and Officers (D&O) insurance	74	15
Depositary fees	62	57
Listing fees	46	58
Registrars fees	28	21
Director recruitment & expenses	27	—
Report and account fees	26	38
Other fees	48	49
Total	759	500

1. Includes employers’ NI.
2. Includes VAT.

Total ongoing charges are capped at 3.0% of net assets. For the period to 31 December 2024, the ongoing charges exceeded this cap and a rebate was paid from the Portfolio Manager for the amount of £39,000. For the 18 months to 31 December 2024 the ongoing charges were 3.0% (2023: 3.0%) of net assets. This is calculated by summing the annualised expenses incurred in the period (excluding non-recurring expenses) divided by the average NAV throughout the period.

5. Tax on ordinary activities
Accounting policy

Corporation tax payable is applied to profits chargeable to corporation tax, if any, at the current rate. The tax effect of different items of income/gain and expenditure/loss is allocated between capital and revenue return on the ‘marginal’ basis as recommended in the SORP.

Deferred tax is recognised in respect of all timing differences at the reporting date. Timing differences are differences between taxable profits and total income as stated in the financial statements that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Disclosure
The corporation tax charge for the period was £nil.

	18 months to	Year to
	31 December	30 June
	2024	2023
	£’000	£’000
Loss on ordinary activities before tax	(2,894)	(778)
Current tax at 25% (2023: 20.5%)	(724)	(159)
Effects of:
Non-taxable income	(357)	—
Non-taxable capital gains	546	1
Non-deductible expenses	1	—
Excess management expenses on which deferred tax not recognised	534	193
Tax rate differences¹	—	(35)
Total current tax charge	—	—

1. Tax rate difference due to tax charge for the period being calculated at 20.5% and excess management expenses on which deferred tax is not recognised being calculated at 25%.

Unrelieved tax losses of £3,231,000 (2023: £1,094,000) are estimated to be carried forward at 31 December 2024 (subject to completion of Future Generations VCT’s tax return) and are available for offset against future taxable income, subject to agreement with HMRC. Future Generations VCT has not recognised the deferred tax asset of £808,000 (2023: £273,000) in respect of these tax losses because there is insufficient forecast taxable income in excess of deductible expenses to utilise these losses carried forward.

Approved VCTs are exempt from tax on capital gains. As the Directors intend for Future Generations VCT to continue to maintain its approval as a VCT through its affairs, no current deferred tax has been recognised in respect of any capital gains or losses arising on the revaluation or disposal of investment.

6. (Loss)/earnings per share

	18 months to 31 December 2024			Year to 30 June 2023
	Revenue	Capital	Total	Revenue	Capital	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Earnings/(loss) attributable to Ordinary shareholders (£’000)	323	(3,217)	(2,894)	(250)	(528)	(778)
Earnings/(loss) per Ordinary share (p)	0.6	(6.3)	(5.7)	(0.6)	(1.3)	(1.9)

The Earnings/(loss) per share is based on 51,727,417 (2023: 40,987,788) Ordinary shares, being the weighted average number of Ordinary shares in issue during the period.

There are no potentially dilutive capital instruments in issue and so no diluted return per share figures are relevant. The basic and diluted earnings per share are therefore identical.

7. Net asset value per share

	31 December	30 June
	2024	2023
Net assets (£’000)	47,923	45,418
Shares in issue	53,941,104	48,138,337
NAV per share (p)	88.8	94.3

8. Transactions with the Manager and Portfolio Manager

Future Generations VCT is classified as a full-scope Alternative Investment Fund under the Alternative Investment Fund Management Directive (the ‘AIFM Directive’). Future Generations VCT has appointed Octopus AIF Management Limited to provide the services of an AIFM of a full-scope AIF. In accordance with its power to do so under AIFMD, Octopus AIF Management Limited has delegated investment management to Octopus Investments Limited, whilst retaining the obligations of a risk manager.

Future Generations VCT paid Octopus AIF Management Limited £1,380,000 (2023: £696,000) in the period as a management fee, after applying a rebate to maintain the total ongoing charges below the 3% cap. The annual management charge (AMC) is based on 2% of Future Generations VCT’s NAV. The AMC is payable quarterly in advance and calculated using the latest published NAV of Future Generations VCT and the number of shares in issue at each quarter end. Once the quarter has ended, an adjustment will be made if the NAV at the end of the current quarter is calculated and which differs from the NAV as at the end of the previous quarter. The Manager will donate 10% of the management fee to the Octopus Giving Charitable Foundation, which was set up in 2014 to help charities make the world a better place and which, since inception, has donated more than £1 million to such worthy causes.

Octopus also provides Non-Investment Services to Future Generations VCT, payable quarterly in advance. The fee is 0.3% of Future Generations VCT’s NAV, calculated at quarterly intervals. The NISA fee is calculated using the latest published NAV of Future Generations VCT and the number of shares in issue at each quarter end. As with the AMC, an adjustment will be made once the quarter has ended if the NAV at the end of the current quarter is calculated and which differs from the NAV as at the end of the previous quarter. During the period £213,000 (2023: £122,000) was paid to Octopus for Non‑Investment Services. In addition, Octopus is entitled to performance-related incentive fees, subject to Future Generations VCT’s total return at year end exceeding the total return at the previous year end when an incentive fee was paid, or 97p if the first incentive fee has not yet been paid (the ‘Excess’), equal to 20% of the Excess. No performance fee will be paid prior to the financial year ending on 31 December 2025, dividends (paid or declared) being equal to or greater than 10p per Ordinary share and the total return exceeding 120p.

The cap relating to Future Generations VCT’s total expense ratio, that is the regular, recurring costs of Future Generations VCT expressed as a percentage of its NAV, above which Octopus has agreed to pay, is 3.0%, and is calculated in accordance with the AIC Guidelines.

Octopus AIF Management Limited remuneration disclosures (unaudited)
Quantitative remuneration disclosures required to be made in this annual report in accordance with the FCA Handbook FUND 3.3.5 are available on the website: https://www.octopusinvestments.com/remuneration-disclosures/.

9. Related party transactions

Several members of the Octopus investment team hold non-executive directorships as part of their monitoring roles in Future Generations VCT’s portfolio companies, but they have no controlling interests in those companies.

Emma Davies, a Non-Executive Director of Future Generations VCT, previously held the role of co-CEO of Octopus Ventures and she also holds shares in Octopus Capital Ltd. On 24 March 2023, Emma Davies ceased to be employed by Octopus Capital Limited and therefore she is no longer considered a related party. Emma retired as a Non-Executive Director of Future Generations VCT on 31 March 2024. No dividends have been paid to the Directors of Future Generations VCT in the period (2023: £nil).

10. 2024 financial information

The figures and financial information for the period ended 31 December 2024 are extracted from the Company’s annual financial statements for the period and do not constitute statutory accounts. The Company’s annual financial statements for the period to 31 December 2024 have been audited but have not yet been delivered to the Registrar of Companies. The Auditors’ report on the 2024 annual financial statements was unqualified, did not include a reference to any matter to which the auditors drew attention without qualifying the report, and did not contain any statements under Sections 498(2) or 498(3) of the Companies Act 2006.

11. 2023 financial information

The figures and financial information for the year ended 30 June 2023 are compiled from an extract of the published financial statements for the period and do not constitute statutory accounts. Those financial statements have been delivered to the Registrar of Companies and included the Auditors’ report which was unqualified, did not include a reference to any matter to which the auditors drew attention without qualifying the report, and did not contain any statements under Sections 498(2) or 498(3) of the Companies Act 2006.

12. Annual Report and financial statements
The Annual Report and financial statements will be posted to shareholders in early May and will be available on the Company’s website, https://octopusinvestments.com/our-products/venture-capital-trusts/octopus-future-generations-vct/.
The Notice of Annual General Meeting is contained within the Annual Report.

13. General information

Registered in England & Wales. Company No. 13750143
LEI: 213800AL71Z7N2O58N66

14. Directors

Helen Sinclair (Chair), Joanna Santinon and Ajay Chowdhury

15. Secretary and registered office

Octopus Company Secretarial Services Limited
6^th Floor, 33 Holborn, London EC1N 2HT

The MIL Network –

April 29, 2025

MIL-OSI: Annual report and financial statements for the year ended 31 December 2024

Source: GlobeNewswire (MIL-OSI)

OCTOPUS TITAN VCT PLC

Annual report and financial statements for the year ended 31 December 2024

Octopus Titan VCT plc announces the final results for the year to 31 December 2024 as below.

Octopus Titan VCT plc (‘Titan’ or the ‘Company’) is managed by Octopus AIF Management Limited (the ‘Manager’), which has delegated investment management to Octopus Investments Limited (‘Octopus’ or ‘Portfolio Manager’) via its investment team Octopus Ventures.

Key financials

	2024	2023
Net assets (£’000)	£831,358	£993,744
Loss after tax (£’000)	£(147,649)	£(149,499)
NAV per share	50.5p	62.4p
Total value per share¹	155.6p	164.4p
Total return per share²	(8.8)p	(9.5)p
Total return per share %³	(14.1)%	(12.4)%
Dividends paid in the year	3.1p	5.0p
Dividend yield %⁴	5.0%	6.5%
Dividend declared	0.5p	1.9p

Total value per share is an alternative performance measure, calculated as NAV plus cumulative dividends paid since launch, as described in the glossary of terms.
Total return per share is an alternative performance measure, calculated as movement in NAV per share in the period plus dividends paid in the period, as described in the glossary of terms.
Total return % is an alternative performance measure, calculated as total return/opening NAV, as described in the glossary of terms.
Dividend yield is an alternative performance measure, calculated as dividends paid/opening NAV, as described in the glossary of terms.

Chair’s statement
Titan’s total return for the year to 31 December 2024 was -14.1% with net assets at the end of the period totalling £831 million.

The Net Asset Value (NAV) per share at 31 December 2024 was 50.5p which, adjusting for dividends paid in the year, represents a net decrease of 8.8p per share from 31 December 2023 or a total return of –14.1%.

This further decline in value has been driven by several factors, including company-specific performance issues and tougher trading conditions, which have reduced revenue growth across a range of sectors. As a result, many companies in the portfolio have not met performance expectations, leading to lower valuation multiples being applied compared to those at recent points of investment. This situation has been exacerbated by a continued slow private market fundraising environment, leading to more limited capital availability. Consequently, companies have prioritised extending their cash runway, aiming to achieve profitability or delay fundraising until market conditions improve. In the short term, this has led to reduced valuations due to slower growth, but in the long run, the disciplined focus on sustainable growth should be beneficial.

With this further decline in NAV, the 5-year tax-free annual compound return for shareholders is now -3.5%. Since the high watermark as at 31 December 2021, Titan’s total return per share has been –39.8% with which the Board and Manager are, and shareholders will be, deeply disappointed. The scale of shareholder dissatisfaction has been made abundantly clear following the recently conducted survey.

In the 12 months to 31 December 2024, the Company utilised £137 million of its cash resources, comprising £30 million in new and follow-on investments, £44 million in dividends (net of the Dividend Reinvestment Scheme (DRIS)), £38 million in share buybacks and £25 million in annual investment management fees and other running costs. The cash and corporate bond balance of £184 million at 31 December 2024 represented 22% of net assets at that date, compared to 20% at 31 December 2023.

The total value (NAV plus cumulative dividends paid per share since launch) at the end of the period was 155.6p (31 December 2023: 164.4p). Titan’s one-year total return of -8.8p (-14.1%) five-year total return of -15.6p (-16.4%) and ten-year total return of 6.7p (6.6%) evidences the disappointing decline in performance in recent years.

Strategic Review

As shareholders will be aware, in the half-yearly report issued at the end of September 2024, we announced a review of strategy to ensure a thorough retrospective analysis took place and a plan be drawn up for how the Company can be best structured for sustainability and improved performance in the future. A significant amount of work has been undertaken by Octopus and our appointed external advisers, Smith Square Partners LLP, across a number of different workstreams. This includes a detailed analysis of historical investment performance, ongoing sustainability, the forward-looking pipeline for realisations, future investment strategy, investment team resources and, finally, investment manager’s culture and governance. The significant performance challenges and the early-stage nature of much of the portfolio mean that it will take some time for changes to have an impact on performance and a longer-term approach to shaping the future of the Company is needed. We are making reasonably good progress, and more can be read about the steps which have been taken in the Spotlight section. The response to our shareholder survey is included below. From this it is clear that there is widespread and deep dissatisfaction with the past performance of Titan, both in absolute and relative terms and an understandable frustration with the lack of capital growth in recent years. The Board also acknowledges the recent press coverage, particularly in respect of shareholders’ views on the fees that Titan pays. We would like to thank those that participated in the survey, as well as those that have provided their feedback to both the Board and Octopus. The Board wishes to assure shareholders that it is considering the results and feedback alongside the review.

We expect to provide a further update on the review at, or prior to, our Annual General Meeting (AGM) on 19 June 2025. However, we do not anticipate the process to be completed by this point, so any proposals for the future of the Company will likely be put to shareholders at a later date.

Performance incentive fees
As the 2024 total return has been negative, and total value per share has declined since 31 December 2021, no performance fee is payable. To remind you, the performance fee is calculated as 20% on net gains above the high-water mark (the highest total value per share as at previous year ends), which is currently set as 197.7p as at 31 December 2021.

Dividends
Following careful consideration and recognising the value that shareholders’ place on receiving tax-free dividends, I am pleased to confirm that the Board has decided to declare a second interim dividend of 0.5p per share (2023: 1.9p per share). This will be paid on 29 May 2025 to shareholders on the register as at 25 April 2025. This second interim dividend, in addition to the 1.2p per share interim dividend paid in December 2024 brings the total dividends declared to 1.7p per share in respect of 2024. However, this 0.5p per share dividend is lower than that paid in previous years because of the ongoing performance challenges and dividends are typically a distribution of achieved performance. Considering dividends paid during 2024 (totalling 3.1p), the total dividend yield for the year is 5%, therefore meeting the Company’s target.

Dividends, whether paid in cash or reinvested under the DRIS, are always at the discretion of the Board, are never guaranteed, and are subject to regular review reflecting the returns generated by the Company, the timing of investment realisations, cash and distributable reserves and continuing compliance with VCT rules.

The Board will consider any further dividends to be paid in 2025 in the second half of the year at, or around, the release of the interim accounts for the six months ending 30 June 2025, subject to Titan’s performance, both realised and unrealised, improving and, as ever, Titan holding sufficient cash reserves.

As with the dividend paid to shareholders on 19 December 2024, and in light of the ongoing review of Titan’s strategy, the Board continues to suspend the Company’s dividend reinvestment scheme for the dividend to be paid on 29 May 2025, with the dividend being paid to shareholders in cash.

Fundraise and buybacks
We were pleased to raise over £107 million in the fundraise which closed on 5 April 2024. As stated in the half-yearly review, the Board will decide on the approach to future fundraising at the conclusion of the review of strategy.

During the year, Titan repurchased 67 million shares for £38 million (representing 4.2% of the net asset value as at 31 December 2023). Further details can be found in Note 14 of the financial statements. Details of the share buybacks undertaken during the year can be found in the Directors’ Report.

VCT status
In November 2023, a ten-year extension was announced to the ‘sunset clause’ (a retirement date for the VCT scheme), meaning VCT tax reliefs will be available until 5 April 2035. This extension passed through Parliament in February 2024 and on 3 September 2024, His Majesty’s Treasury brought the extension into effect through The Finance Act 2024. The Board is delighted that this has brought clarity to the status of VCTs.

Board of Directors
Rupert Dickinson was appointed to the Board with effect from 1 May 2024 and was elected by shareholders at the AGM held in June 2024. Rupert has over 20 years’ experience in the wealth and investment management industries. We are already benefitting from his extensive experience.

All the other Directors have indicated their willingness to remain on the Board, and Jane O’Riordan and Lord Rockley will be seeking re-election at the AGM.

Portfolio Manager and team
In March 2024, Malcolm Ferguson, Octopus’ lead Fund Manager for Titan, resigned and Jo Oliver was appointed as lead Fund Manager and Adviser to the Board on fund and strategy on an interim basis. In August 2024, Jo stepped down from this interim role. We wish to take this opportunity to thank both Jo and Malcolm for their contributions to the Company and wish them well for the future. We are pleased that, despite Malcolm’s resignation, he continues to support with portfolio management on a contractual basis. The process to appoint a replacement lead Fund Manager will commence once the review of strategy is completed.

Shareholders may be aware that there has been considerable turnover over the past twelve months in the Octopus Ventures team, which is responsible for managing Titan. As part of the on-going strategic review, Octopus is assessing the team structure, size, culture and experience to ensure it is aligned with its future investment strategy proposals. In the interim, the Octopus Ventures team is receiving additional senior support from across the business to ensure adequate resources are available.

AGM and shareholder event
The AGM will take place on 19 June 2025 from 12.00 noon and will be held at the offices of Octopus Investments Limited, 33 Holborn, London, EC1N 2HT. Full details of the business to be conducted at the AGM are given in the Notice of AGM.

Shareholders’ views are important, and the Board encourages shareholders to vote on the resolutions within the Notice of AGM using the proxy form, or electronically at www.investorcentre.co.uk/eproxy. Shareholders are invited to send any questions they may have via email to TitanAGM@octopusinvestments.com. The Board has carefully considered the business to be approved at the AGM and recommends shareholders to vote in favour of all the resolutions being proposed, as the Board will be doing.

Currently, we do not anticipate the strategic review process will have been fully completed by the date of the AGM. As a result, we will issue a further communication to shareholders in due course setting a date for a shareholder event and, if applicable, a General Meeting at which shareholders will be able to vote on any proposals for the future direction of the Company.

Outlook
The further decline in NAV to 31 December 2024 is extremely disappointing, especially when set against the backdrop of the recent recovery of some of the comparable markets and other VCTs. This decline has been primarily driven by specific portfolio performance issues and sectoral downturns, leading to cash constraints exacerbated by a challenging fundraising environment. Some portfolio companies attempted to raise funds but were unsuccessful, resulting in several being placed into administration or accepting acquisition offers on unfavourable terms. More details on these disposals can be found in the Portfolio Manager’s review. Others had to complete funding rounds at lower valuations or in ways that negatively impacted the value of the Company’s shareholding.

The Company returned £29 million in cash proceeds from exits in 2024, in addition to £12.4 million distributed from Zenith Holding Company to Titan. This is a disappointing outcome as it is below the level achieved in 2023, and does not accomplish the Company’s long-term sustainability target. Despite the Manager’s initiatives to increase the number of realisations of portfolio companies and return cash proceeds to Titan, we have not yet seen any profitable realisations in 2025. This sustained focus on achieving regular liquidity is an important step towards ensuring the ongoing sustainability of the Company.

Despite this, the Board retains a degree of optimism about the potential of some of the companies within what is undoubtedly a diversified portfolio, with over 135 companies spanning a wide range of sectors, business models and investment stages. Furthermore, Titan’s portfolio remains well funded with circa 42% of the portfolio NAV being comprised of companies not expecting to need further funding. This figure rises to 67% when including those companies with more than 12 months’ cash runway.

I would like to conclude by thanking both the Board and the Octopus team on behalf of all shareholders for their hard work during this very challenging period.

Tom Leader
Chair

Spotlight on the review of strategy

On 30 September 2024, the Board, in conjunction with the Manager, announced a strategic review. This was catalysed by the ongoing challenges in the early-stage venture market to which the Company is exposed and the resultant performance issues faced. Since this date, the Board and Manager have undertaken numerous actions to identify the areas of focus and potential changes which could be made to drive the best performance for the Company and outcome for shareholders. Below is a summary of the steps taken to date by both the Board and Manager.

Date	Investment Manager’s actions	Titan VCT Board’s actions	Board meetings held
Sep 2024		Announcement of review of strategy.	Four Board meetings
Oct 2024	Establish internal review committee comprised of different areas of the business. Co-ordinating information packs for the external advisers.	External adviser selection process concluded and terms agreed.
Nov 2024	Recruitment process for senior Portfolio Management roles commences. Internal review committee submits scope of work to the Board.	External advisers, Smith Square Partners, appointed. Board reviews Octopus’ scope of work.	Two Board meetings
Dec 2024	Internal review committee submits information pack on sustainability and fund performance workstreams to the Board.	Shareholder and adviser survey launched. Board reviews information pack on sustainability and fund performance. Board reviews external advisers’ analysis of performance and benchmarking.	One Board meeting
Jan 2025	Survey results analysed. External specialists commence review of Consumer Duty. Internal review committee submits information pack on team and culture and risk and governance work streams to the Board.	Board reviews external advisers’ progress report including analysis of the realisations pipeline. Board reviews information pack on team and culture and risk and governance work streams. Survey results analysed.	Two Board meetings
Feb 2025	Internal review committee presents first part of the go-forward investment strategy and further sustainability analysis and metrics.	Board reviews go‑forward strategy and sustainability analysis and metrics.	One Board meeting
Mar 2025	Results of Consumer Duty Review analysed.	Board reviews external advisers’ progress report. Results of Consumer Duty Review analysed. Unaudited NAV released with update on progress of review.	Two Board meetings
Apr 2025	Internal review committee presents follow up detail on the go-forward investment strategy, as well as proposals for future team and resourcing plan. Proposal submitted to Board regarding ongoing fees.	External advisers’ interim report shared with the Board. Annual report published. Board considers proposal on future team and resourcing strategy and fees. Board commences fee negotiations with Octopus.	Two Board meetings

Summary of the Manager’s internal review workstreams:

1. Fund performance
Working to understand the most appropriate investment and divestment strategy looking at past performance metrics, benchmarks and future objectives.

2. Fund strategy
Investigating potential future options for Titan’s strategy which could drive improved performance. Some potential options were included in the shareholder survey to canvas views.

3. Sustainability
Working on past performance and future forecasting to ensure Titan operates sustainably, returning funds through realisations.

4. Team & culture
Reviewing the team structure, size, culture and experience (past and present) and how it maps to the successful management of the Company. Full Octopus Ventures strategy refresh in line with new Chief Executive Officer (CEO) Erin Platts joining.

5. Consumer Duty
External consultants appointed to carry out a review of Consumer Duty. This is to understand shareholders’ expected outcomes and assessing how the Company has delivered against them.

6. Risk & governance
Work led by the compliance team updating Titan’s risk register. Review and enhancement of governance processes and procedures, where relevant.

What’s next
1. Final Smith Square Partners report presented to the Board.
2. Finalise fee proposal, as well as review of the Investment Management Agreement and Non-Investment Services Agreement.

Octopus Ventures’ new CEO

Erin Platts joined Octopus Ventures as CEO in January 2025.

Previously, she held the role of CEO at HSBC Innovation Banking UK, formerly Silicon Valley Bank UK & EMEA. Over two decades in leadership roles with the institution, she established Silicon Valley Bank UK as a standalone, regulated subsidiary before leading the organisation through the transition period following its sale to HSBC in 2023, scaling operations to over 800 people, across six countries and into the market leading position across the sector.

With a career spent in the US, UK and European tech ecosystems, Erin is an active and vocal spokesperson, championing Diversity, Equity and Inclusion through partnerships with organisations including Tech Nation, Founders Forum and the Newton Venture Program.

Portfolio Manager’s review

At Octopus, our focus is on managing your investments and providing open communication. Our annual and half-year updates are designed to keep you informed about the progress of your investment.

Focus on performance
The NAV of 50.5p per share at 31 December 2024 represents a decrease in NAV of 8.8p per share versus a NAV of 62.4p per share as at 31 December 2023, after adding back dividends paid during the year of 3.1p (2023: 5p) per share, a negative total return per share of 14.1% in the year.

The performance over the five years to 31 December 2024 is shown below:

	Year ended	Year ended	Year ended	Year ended	Year ended
	31 December	31 December	31 December	31 December	31 December
	2020	2021	2022	2023	2024
NAV, p	97.0	105.7	76.9	62.4	50.5
Cumulative dividends paid, p	81.0	92.0	97.0	102.0	105.1
Total value, p	178.0	197.7	173.9	164.4	155.6
Total return¹	7.1%	20.3%	(22.5)%	(12.4)%	(14.1)%
Dividend yield²	5.3%	11.3%	4.7%	6.5%	5.0%

1. Total return % is an alternative performance measure, calculated as total return/opening NAV.
2. Dividend yield is an alternative performance measure, calculated as dividends paid/opening NAV.

We are deeply disappointed by the negative total return of 14.1% in 2024 which has been driven by a decline of £193 million across 72 companies. The businesses that contributed most significantly to this decline were Pelago, Many Pets and Big Health. Whilst these companies continue to look to scale, they have underperformed the high expectations set at their last funding round, and so have seen their valuations decline.

These three valuation movements account for around a third of the total decline in NAV over the twelve-month reporting period.

Octopus Ventures believes that many of the companies which have seen decreased valuations in the period have the potential to overcome the issues they face and get their growth plans back on track. Octopus Ventures continues to work with them to help them realise their potential. In some cases, the support offered could include further funding to ensure a business has the capital it needs to execute on its strategy. Our in-house Talent team is being utilised to build high-performing teams and support on key recruitment initiatives. This team, as well as our expert network of consultants, support companies on project work and can also work part-time with the businesses.

More positively, 39 companies saw an increase in valuation in the period, delivering a collective increase in valuation of £56 million. These valuation increases reflect businesses which have successfully concluded further funding rounds at increased valuations, grown revenues or met certain important milestones. Notable strong performers in the portfolio include Legl, Taster and Katkin – all of which have increased their market reach through new product launches. These strong performers demonstrate that there are opportunities available for companies to thrive, and Titan’s diverse portfolio allows different routes for each company to succeed in their market.

The gain on Titan’s uninvested cash reserves was £9.2 million in the year to 31 December 2024, primarily driven by a fair value movement of £4.4 million in the corporate bond portfolio and a return of £4.2 million on the money market funds. The objective for the money market funds is to earn appropriate market rates on highly liquid treasury holdings, with limited risk to capital.

Titan total value growth from inception
The table below highlights the compound annual growth rate across different holding periods.

Despite the reduction in NAV in the year, the total value has seen an increase since the end of Titan’s first year, from 89.9p to 155.6p at 31 December 2024. Since Titan launched, a total of over £557 million has been distributed back to shareholders in the form of tax-free dividends. This includes dividends reinvested as part of the DRIS.

Holding period	Total return	Tax-free compound annual growth rate
Since October 2008	73.1%	3.4%
10 years	6.6%	0.6%
5 years	(16.4)%	(3.5)%
1 year	(14.1)%	(14.1)%

Disposals
Disposals and deferred proceeds have returned £29 million in cash during the period. In addition, £12.4 million was distributed from Zenith Holding Company to the Company.

Exits
In June, Taxfix (a European focused tax return technology platform) acquired TaxScouts, for a combination of cash and equity, which has allowed it to enter the UK market. As a result, Titan now holds shares in Taxfix.

In July, Foodsteps was acquired by Registrar Corp (a provider of regulatory and compliance software for the food, cosmetic and life sciences industry). This transaction was also for a combination of cash and equity and has offered Registrar Corp access to Foodsteps’ global market platform of over 32,000 companies in 190 countries.

In November, Cobee was acquired by Pluxee Group (an employee benefits and engagement platform) as part of its strategic growth plan. Pluxee is a global leader in employee benefits and engagement, operating in 31 countries with over 5,000 employees. Pluxee is uniquely positioned to support Cobee’s continued growth.

In November, nCino (a cloud-based software company that provides a platform for financial institutions to manage their business lines) acquired FullCircl. This will enhance nCino’s data and automation capabilities and allow it to expand its reach across the UK and Europe.

In December, Behavox (a leading provider of AI powered archiving, compliance and security solutions) acquired Mosaic Smart Data.

Partial exits
Two partial exits completed in October with Neat (an embedded insurance platform that enables merchants to offer tailored insurance bundles to their customers at competitive rates) completing a €50 million Series A funding round, and Vitesse (a global domestic settlement and liquidity management system to hold funds and execute cross-border payments) completing a $93 million Series C investment round. As part of both of these rounds, Titan sold a portion of its shares. We are pleased to have realised some value for shareholders in these transactions, but also excited to maintain a holding in the companies and to be able to continue to support their growth journeys.

Deferred proceeds
In the year, Titan also received deferred proceeds from the sale of Calastone (to The Carlyle Group in 2020) which was held via Octopus Zenith Holding Company, iSize (to Sony Interactive Entertainment in 2023), Conversocial (to Verint), Glofox (to ABC Fitness), Comma (to Weavr) and Foodsteps (to Registrar).

Exits at a loss
There have been four disposals made at a loss: Titan sold its remaining shares in Cazoo, which was listed on the New York Stock Exchange, Unmade was acquired by High-Tech Apparel, and Titan’s shares in Appear Here were converted to deferred shares and divested, as there was not seen to be a chance of recovery of any funds. Vinter was acquired by Kaiko (a leading provider of cryptocurrency market data, analytics and indices) for equity. As a result, Titan now holds shares in Kaiko, which are currently valued below Titan’s initial cost of investment, but these will be subject to re-valuation at least twice annually as per our normal process. In aggregate, these losses generated negligible proceeds compared to an investment cost of £19 million.

Companies placed into administration
Unfortunately, Audiotelligence, Stackin (now fully dissolved), Contingent, Phoelex, Excession, Dead Happy, Pulse Platform and Allplants were placed into administration having all been unsuccessful in securing further funding and having explored and exhausted all available options. In aggregate, the investment cost of the companies placed into administration totalled £26 million.

In the year to 31 December 2024, Third Eye and LifeBook were fully dissolved having been placed into administration in previous reporting periods.

The underperformance of a portfolio company is always disappointing for Octopus and shareholders alike, but it is an inherent characteristic of a venture capital portfolio, and we believe the successful disposals will continue to outweigh the losses over the medium to long-term.

	Year ended 31 December 2020	Year ended 31 December 2021	Year ended 31 December 2022	Year ended 31 December 2023	Year ended 31 December 2024	Total
Disposal proceeds¹ (£’000)	23,915	221,504	62,213	45,637	41,432	394,701

1.This table includes cash and retention proceeds received in the period.

New and follow-on investments
Titan completed 8 new investments and made 14 follow-on investments in the reporting period. Together, these totalled £30 million (made up of £19 million into new companies and £11 million invested into the existing portfolio).

Please see a summary of some of the new investments we made in the year.

DRIFT Energy: Designing sailing vessels and routing algorithms required to capture deep water wind energy and convert it into onboard hydrogen gas for transportation back to shore.
ExpressionEdits: Using a proprietary AI algorithm to design DNA sequences and intronization technology to enhance the expression of proteins in mammalian cells.
Forefront: Developing a tuneable Radio Frequency Front-End (RFFE) module for mobile devices which is smaller, cheaper, and more flexible than currently available products sold.
LabGenius: A next-generation platform leveraging machine learning to develop novel therapeutic antibodies.
Manual: Provides innovative treatments for a range of health conditions.
Remofirst is an Employer of Record (EOR) and compliance platform that allows companies to hire and pay employees globally.
SWiiPR: Developed a digital payments platform specifically for the airline industry.

As explained in the half-yearly report, the Octopus Ventures team is focused on improving performance from the existing portfolio and driving improved returns to shareholders. Given Titan’s scale, the greatest returns are expected to be driven by its existing, largest holdings. Over the last nine months, Titan has focused on building value in its existing portfolio, allowing capital and time to be prioritised on existing companies. No term sheets for new investments have been signed since the summer of 2024. The five follow-on investments which completed in the second half of 2024 have all increased in value in the December valuation round, on average seeing an increase of 10%. We believe that this focus will drive positive future NAV performance as these portfolio companies are more established, so have a greater potential to secure further investment, or are closer to an exit.

Shareholder survey results
Octopus regularly seeks feedback from Titan’s investor and adviser base either through local Business Development Managers or after webinars with the Investment Managers. Considering the ongoing review of Titan’s strategy, which is looking at a wide range of areas such as investment strategy, fundraising and dividend policies, Octopus and the Board wanted to give investors and advisers an extra opportunity to share feedback and help shape the future strategic direction of Titan. In conjunction with an external research firm, between December 2024 and January 2025, Octopus surveyed Titan’s investor and adviser base to try to better understand investors’ priorities, areas of concern and opportunities which may be of interest.

We were pleased to see significant engagement, having received over 3,000 responses from investors and advisers. As stated in the Chair’s statement, the results emphasise that the greatest areas of dissatisfaction are around past performance and the capital growth opportunity, as highlighted below. Octopus and the Board share investors’ frustration with the recent poor performance, and have been reviewing Titan’s investment strategy with the aim to improve shareholder returns. The Board intends to communicate to investors any strategic changes once they are agreed in due course.

To understand investors’ priorities when making their investment decision we asked the following:

When you first chose to invest in Titan VCT, how important were the following factors?
The results were as follows in order of importance:

Tax reliefs available on your investment (income tax relief, tax free dividends and tax free capital gains)
5% annual target dividend
Capital growth opportunity
Past performance of fund
Access to early-stage, unlisted tech enabled companies with high growth potential
Ability to sell your shares back to the VCT via the share buyback facility
Size of fund
Fees and charges

Octopus asked investors to rank their level of satisfaction against each of the top eight factors and the results were as follows:

	Satisfied	Dissatisfied	Neutral or not sure
Tax reliefs available on your investment	88%	2%	10%
5% annual target dividend	50%	22%	28%
Capital growth opportunity	18%	60%	22%
Past performance of fund	21%	52%	27%
Access to early-stage, unlisted tech enabled companies with high growth potential	39%	10%	51%
Ability to sell your shares back to the VCT via the share buyback facility	29%	8%	63%
Size of fund	34%	6%	60%
Fees and charges	22%	18%	60%

Survey results based on responses from 1,093 direct investors and 2,195 advised investors, does not include responses from advisers.

Valuations
Titan’s unquoted portfolio companies are valued in accordance with UK GAAP accounting standards and the International Private Equity and Venture Capital (IPEV) valuation guidelines. This means we value the portfolio at Fair Value, which is the price we expect people would be willing to buy or sell an asset for, assuming they had all the information available that we do, are knowledgeable parties with no pre-existing relationship, and that the transaction is carried out under the normal course of business.

The table below illustrates the split of valuation methodology (shown as a percentage of portfolio value and number of companies). ‘External price’ includes valuations based on funding rounds that typically completed by the year end or shortly after the year end, and exits of companies where terms have been issued with an acquirer. ‘External price’ also includes quoted holdings, which are held at their quoted price as at the valuation date. As at 31 December 2024, Titan only held one quoted holding. ‘Multiples’ is predominantly used for valuations that are based on a multiple of revenues for portfolio companies. Where there is uncertainty around the potential outcomes available to a company, a probability-weighted ‘scenario analysis’ is considered.

Valuation methodology	By value	By number of companies
External price	17%	25
Multiples	53%	30
Scenario analysis	16%	33
Milestone analysis	14%	25
Write-off	–	25

Case studies

MANUAL
https://www.manual.co/
Making high-quality care more accessible and stigma-free

MANUAL provides innovative treatments for a range of conditions, from hair loss and low testosterone to weight management and diagnostics.

With over 800,000 patients served across the UK and Brazil, MANUAL continues to expand its impact. The company’s weight loss brand, Voy, has helped over 70,000 people lose weight. In 2024, MANUAL acquired Menopause Care – the UK’s second largest menopause clinic – furthering its mission to support underserved areas of health.

Following the company’s £29 million Series B raise in 2024, the company is accelerating its growth, with a 140% revenue Compound Annual Growth Rate (CAGR) since 2019. With this investment, MANUAL is scaling its reach and pioneering new healthcare solutions, ensuring more people get the treatments they need to improve their quality of life.

Nearly 90% of men do not seek help unless they have a serious problem
Served more than 800,000 patients to date

Legl
https://legl.com/
Revolutionising Legal Services with AI and Data-Driven Insights

Legl delivers a world-class client experience for UK law firms by reducing risk, improving cash flow, and enabling them to bill and collect payments faster. With actionable client intelligence, their customers are empowered to make smarter decisions and drive business growth.

By leveraging cutting-edge technology and data insights, Legl creates seamless onboarding experiences and superior payment processing capabilities. Beyond onboarding, they provide intelligence and audit functionality to help firms manage risk intelligently in a complex and ever-changing environment. Its embedded finance stack, which has been built specifically for law firms, makes collecting payments, reducing debt, and fostering exceptional client relationships effortless. In turn, providing a step-change for internal cash flow and treasury management.

Helped firms manage risk for over one million clients
Processed over $500 million in payments

BondAval
https://www.bondaval.com/
Transforming non-payment risk protection

Founded in 2020, B2B insurtech Bondaval protects companies when their customers buy now, but don’t pay later, and is already serving some of the largest companies in the world. While existing options are opaque, inflexible or limited, Bondaval’s range of insurance products are made more powerful via their proprietary technology platform, which translates policy obligations into clear tasks, helps aggregate and monitor risk signals, and makes limit management effortless for credit managers. With their receivables secured, businesses can grow faster with more peace of mind, achieve more predictable financial performance, and even access new lines of financing.

Offices in London, New York and Dallas
Licensed in 30+ countries

Taster
https://taster.com/
Food innovators redefining quick-service dining

Taster was founded with the goal of revolutionising the quick-service food experience globally. In 2017, the company raised €8 million, and by 2021, they secured an additional €30 million. By the end of 2023, Taster had grown to 400 online restaurants, with its franchise network expanding across France, the UK, Spain, the Netherlands, and Belgium. Taster collaborates closely with co-creators and kitchen partners, from launching new brands to creating special edition menu items. Their strategy focuses on building social media-first brands that engage audiences and cultivate communities around their digital restaurants.

Operating in over 90 cities across Europe

We are disappointed to report a net decrease in the value of the portfolio of £137 million since 31 December 2023, excluding additions and disposals. This represents a decline of 17% on the value of the portfolio at the start of the year. Here, we set out the cost and valuation of the top 20 holdings, which account for 61% of the value of the portfolio and 47% of the total NAV.

	Portfolio:	Investment focus:	Investment cost:	Total valuation including cost:
1	Skin+Me	Health	£11.5m	£44.9m
2	Amplience	B2B Software	£13.6m	£35.0m
3	Permutive	B2B Software	£19.0m	£31.0m
4	Elliptic	Fintech	£9.9m	£26.2m
5	Vitesse	Fintech	£8.8m	£25.8m
6	ManyPets	Fintech	£10.0m	£24.6m
7	Pelago¹	Health	£17.9m	£23.2m
8	Legl	B2B Software	£7.3m	£18.6m
9	Orbex	Deep tech	£12.0m	£17.8m
10	Token	Fintech	£12.6m	£16.5m
11	Taster	Consumer	£8.1m	£15.4m
12	vHive	Deep tech	£8.0m	£14.9m
13	Ometria	B2B Software	£11.5m	£14.0m
14	SeatFrog	Consumer	£9.6m	£13.5m
15	KatKin	Consumer	£8.2m	£13.2m
16	Automata	Health	£12.3m	£12.4m
17	XYZ	Consumer	£15.3m	£10.7m
18	BondAval	Fintech	£7.1m	£10.6m
19	Iovox	B2B Software	£7.2m	£10.4m
20	Ibex	Health	£11.8m	£9.5m

Digital Therapeutics, Inc., formerly Quit Genius, has rebranded as Pelago.

Top 10 investments in detail¹
1
Skin+Me

Skin+Me offers direct-to-consumer, personalised skincare.
www.skinandme.com

Initial investment date:	September 2019
Investment cost:	£11.5m
	(2023: £11.5m)
Valuation:	£44.9m
	(2023: £48.5m)
Last submitted accounts:	31 August 2023
Turnover:	£28.7m (2023: £14.3m)
Profit/(loss) before tax:	£1.8m
	(2023: £(3.3)m)
Net assets:	£12.8m
	(2023: £(0.7m)
Valuation methodology:	Multiple 2023: Multiple

2
Amplience
Amplience is a leading headless content management system, which powers retailers’ digital channels.
www.amplience.com

Initial investment date:	December 2010
Investment cost:	£13.6m
	(2023: £13.6m)
Valuation:	£35.0m
	(2023: £41.8m)
Last submitted accounts:	30 June 2024
Turnover:	£16.0m
	(2023: £14.9m)
Loss before tax:	£(5.5)m
	(2023: £(8.1)m)
Net assets:	£(22.8)m
	(2023: (£17.4m)
Valuation methodology:	Multiple 2023: Multiple

3
Permutive
Permutive’s publisher data platform gives its customers an in-the-moment view of everyone on their site.
www.permutive.com

Initial investment date:	May 2015
Investment cost:	£19.0m
	(2023: £19.0m)
Valuation:	£31.0m
	(2023: £41.2m)
Last submitted accounts:	31 January 2023
Turnover:	Not available²
	(2023: £9.8m)
Loss before tax:	Not available²
	(2023: £(19.3)m)
Net assets:	Not available²
	(2023: £(40.2)m)
Valuation methodology:	Multiple
	2023: Multiple

4
Elliptic
Crypto compliance and forensic investigation solutions used by financial institutions, crypto businesses, law enforcement, and regulators to detect and prevent financial crime.
www.elliptic.co

Initial investment date:	July 2014
Investment cost:	£9.9m
	(2023: £9.9m)
Valuation:	£26.2m
	(2023: £19.0m)
Last submitted accounts:	31 March 2024
Turnover:	£13.7m
	(2023: £9.6m)
Loss before tax:	£(16.4)m
	(2023: £(27.1)m)
Net assets:	£(3.8)m
	(2023: £10.6m)
Valuation methodology:	Multiple 2023: Multiple

5
Vitesse

A settlement and liquidity management platform to hold funds and deliver international payments globally, using domestic, in-country processing.
www.vitesse.io/

Initial investment date:	June 2020
Investment cost:	£8.8m
	(2023: £10.1m)
Valuation:	£25.8m
	(2023: £26.6m)
Last submitted accounts:	31 March 2024
Consolidated turnover:	£24.8m
	(2023: £11.2m)
Consolidated profit/(loss) before tax:	£0.6m
	(2023: £(5.7)m)
Net assets:	£17.3m
	(2023: £16.2m)
Valuation methodology:	Multiple 2023: Last Round

6
ManyPets

An award-winning insurtech company with a specific focus on providing better pet insurance for everyone.
www.manypets.com

Initial investment date:	October 2016
Investment cost:	£10.0m
	(2023: £10.0m)
Valuation:	£24.6m
	(2023: £47.1m)
Last submitted accounts:	31 March 2024
Turnover:	£29.6m
	(2023: £35.9m)
Loss before tax:	£(34.1)m
	(2023: £(67.5)m)
Net assets:	£79.9m
	(2023: £110.6m)
Valuation methodology:	Multiple 2023: Multiple

7
Pelago

A digital health solution for managing substance use disorders.
www.pelagohealth.com

Initial investment date:	January 2020
Investment cost:	£17.9m (2023: £17.9m)
Valuation:	£23.2m
	(2023: £38.6m)
Last submitted accounts:	Not available²
Turnover:	Not available² 2023: Not available²:
Loss before tax:	Not available² 2023: Not available²
Net assets:	Not available² 2023: Not available²
Valuation methodology:	Multiple 2023: Last round

8
Legl
Cloud based legal workflow automation platform.
www.legl.com

Initial investment date:	January 2021
Investment cost:	£7.3m
	(2023: £7.3m)
Valuation:	£18.6m
	(2023: £13.8m)
Last submitted accounts:	31 December 2023
Turnover:	Not available²
	2023: Not available²
Profit/(loss) before tax:	$1.5m
	(2023: $(0.1)m)
Net assets:	$30.4m
	(2023: $28.8m)
Valuation methodology:	Multiple 2023: Multiple

9
Orbex

Focused on providing low-cost orbital launch services for small satellites.
www.orbex.space

Initial investment date:	December 2020
Investment cost:	£12.0m
	(2023: £10.3m)
Valuation:	£17.8m
	(2023: £15.3m)
Last submitted group accounts:	31 December 2023
Turnover:	Not available² 2023: Not available²
Consolidated loss before tax:	£(17.2)m (2023:(8.8)m)
Consolidated net assets:	£16.3m
	(2023: £31.8m)
Valuation methodology:	Scenario Analysis 2023: Scenario Analysis

10
Token

A leading open banking solution, focused on payments.
www.token.io

Initial investment date:	March 2017
Investment cost:	£12.6m
	(2023: £12.6m)
Valuation:	£16.5m
	(2023: £17.1m)
Last submitted group accounts:	31 December 2023
Turnover:	Not available² 2023: Not available²
Loss before tax:	Not available² 2023: Not available²
Net assets:	£0.9m
	(2023: £0.7m)
Valuation methodology:	Multiple 2023: Multiple

1. These are numbers per latest public filings. More recent figures have not yet been disclosed.
2. Information not publicly available.

Outlook
Our portfolio companies have been navigating a turbulent few years and global geo‑political and economic conditions remain uncertain. Due to the early‑stage nature of the portfolio companies, any improvement in conditions will not be felt immediately.

The fundraising environment remains challenging for portfolio companies, with 2024 seeing both a decline in the number of investments completed at the seed and Series A stages and many rounds completing at decreased valuations. This is largely a function of a reset in venture-backed valuations which began in 2022, with many companies having no option but to accept a reduced valuation to bring in new capital to survive or scale. We have also seen in the year that the venture landscape has been reshaped by AI, which captured a 37% share in all funding in 2024 and 17% of all deals.¹ However, when AI investments are excluded, global deal activity dropped to its lowest levels since 2016.

With some of our portfolio companies struggling to secure new investors and requiring significant investment to develop, many have had to focus on cash preservation and limit their growth. As such, the valuation multiples being applied have declined in line with this. We have also seen some companies being unable to achieve the milestones Octopus set out when the initial investment was completed and so we have seen more declines in value.

Looking to the future, the Octopus Ventures team has been focusing on driving both improved performance and distributions to Titan. In the year, we have been able to realise £29 million in cash proceeds to the Company from exits. This includes deferred amounts received in cash relating to disposals from previous periods. In addition, £12.4 million was distributed from Zenith Holding Company to the Company. The team is actively involved in its portfolio companies and during the year developed specific workstreams to support the portfolio with value-adding activities, as summarised below:

Capital allocation: aims to optimise financial planning by fostering stronger alignment between each company’s strategic objectives and their financial plans, reducing the risk of unexpected cash issues and value-eroding insolvencies or emergency down-rounds. Improving financial planning will ensure efficient resource allocation, minimise risks and enhance profitability, ultimately leading to sustainable growth and long-term success.
Return: looking to drive exits or other liquidity events as part of a clear aim of regularly recycling capital back into the Company.
Raise: to improve fundraising outcomes for portfolio companies, through initiatives such as supporting the creation of fundraising material, network introductions for potential investors or timeframe planning. Raising additional funding is crucial to provide the necessary capital to expand operations, invest in new technologies and seize available growth opportunities, ensuring a company’s long-term viability and competitive edge.
Talent and board: to drive performance in companies by supporting and influencing the build of high performing leadership teams and effective boards. This workstream is driven by Octopus Ventures in-house People and Talent team. Building talented teams drives innovation, enhances productivity and contributes to a positive work culture, all of which lead to a company’s overall success.

Titan’s capital and resources have been prioritised on those portfolio companies which have the potential to drive the greatest returns. This portfolio focus has been leveraging the advantages Titan has of being a very large and mature VCT holding a highly diversified portfolio. Having made over 80 investments in the preceding few years, there remains the opportunity for long-term returns to the Company. The ongoing focus for the team will be optimising growth plans for the portfolio and taking advantage of exit opportunities.

1. https://www.cbinsights.com/research/report/venture-trends-2024/

Risks and risk management

The Board assesses the risks faced by Titan and, as a board, reviews the mitigating controls and actions, and monitors the effectiveness of these controls and actions.

Emerging and principal risks, and risk management

Emerging risks

The Board has considered emerging risks. The Board seeks to mitigate emerging risks and those noted below by setting policy, regular review of performance and monitoring progress and compliance. In the mitigation and management of these risks, the Board applies the principles detailed in the Financial Reporting Council’s Guidance on Risk Management, Internal Control and Related Financial and Business Reporting.

The following are some of the potential emerging risks that management and the Board are currently monitoring:

adverse changes in global macroeconomic environment;
challenging market conditions for private company fundraising and exits;
geo-political instability; and
climate change.

Principal risks

*Risk*	*Mitigation*	*Change*
Investment performance:
The focus of Titan’s investments is into unquoted, small and medium‑sized VCT qualifying companies which, by their nature, entail a higher level of risk and shorter cash runway than investments in larger quoted companies.	Octopus has significant experience of investing in early-stage unquoted companies, and appropriate due diligence is undertaken on every new investment. A member of the Octopus Ventures team is appointed to the board of a portfolio company using a risk-based approach, considering the size of the company within the Titan portfolio and the engagement levels of other investors. Regular board reports are prepared by the portfolio company’s management and examined by the Manager. This arrangement, in conjunction with its Portfolio Talent team’s active involvement, allows Titan to play a prominent role when necessary in a portfolio company’s ongoing development and strategy. The overall risk in the portfolio is mitigated by maintaining a wide spread of holdings in terms of financing stage, age, industry sector and business model. The Board reviews the investment portfolio with the Portfolio Manager on a regular basis. The Portfolio Manager is incentivised via a performance incentive fee for exceeding certain performance hurdles. The Board and Octopus are reviewing the fee structure.	Risk exposures continue to increase due to the difficult macro environment and challenging trading conditions for some portfolio companies continuing.
*Risk*	*Mitigation*	*Change*
VCT qualifying status:
Titan is required at all times to observe the conditions for the maintenance of approved VCT status. The loss of such approval could lead to Titan and its investors losing access to the various tax benefits associated with VCT status and investment.	Octopus tracks Titan’s qualifying status regularly throughout the year, and reviews this at key points including investment realisation. This status is reported to the Board at each Board meeting. The Board has also engaged external independent advisers to undertake an independent VCT status monitoring role.	Decreased exposures reflected in the previous period remain. VCT status monitoring by independent advisers continues to reduce the risk of an issue causing a loss of VCT status.
*Risk*	*Mitigation*	*Change*
Loss of key people:
The loss of key investment staff by the Portfolio Manager could lead to poor fund management and/or performance due to lack of continuity or understanding of Titan.	The Portfolio Manager has a broad team, experienced in and focused on early-stage investing and portfolio company management. Various mitigants exist to assist in managing key person risk. These include frameworks that review succession, remuneration and career progression. Workforce planning is continuous and reviews skillsets and team structures. To reduce the exposure further, the core team is also supplemented by part-time venture partners with sector or functional specialism.	The increased exposures reflected in the previous period remain due to the loss of the lead fund manager and other leadership positions at the Portfolio Manager. The absence of a performance fee and lack of new investments or deal-making opportunities compared to previous periods are also factors.
*Risk*	*Mitigation*	*Change*
Operational:
The Board is reliant on the Portfolio Manager to manage investments effectively, and manage the services of a number of third parties, in particular the registrar, depositary and tax advisers. A failure of the systems or controls at Octopus or third-party providers could lead to an inability to provide accurate reporting and accounting and to ensure adherence to VCT rules.	The Board reviews the system of internal controls, both financial and non-financial, operated by Octopus (to the extent the latter are relevant to Titan’s internal controls). These include controls designed to make sure that Titan’s assets are safeguarded and that proper accounting records are maintained.	No overall change in risk exposure on balance.
*Risk*	*Mitigation*	*Change*
Information security:
A loss of key data could result in a data breach and fines. The Board is reliant on Octopus and third parties to take appropriate measures to prevent a loss of confidential customer information.	Annual due diligence is conducted on third parties which includes a review of their controls for information security. Octopus has a dedicated information security team and a third party is engaged to provide continual protection in this area. A security framework is in place to help prevent malicious events.	No overall change on balance, although cyber threat remains a significant risk area faced by all service providers. The appropriateness of mitigants in place are continuously reassessed to adapt to new risk exposures, such as those posed by artificial intelligence.
*Risk*	*Mitigation*	*Change*
Economic:
Events such as an economic recession and movement in interest rates could adversely affect some smaller companies’ valuations, as they may be more vulnerable to changes in trading conditions or the sectors in which they operate. This could result in a reduction in the value of Titan’s assets.	Titan invests in a diverse portfolio of companies, across a range of sectors, which helps to mitigate against the impact on any one sector. Titan also maintains adequate liquidity to make sure it can continue to provide follow‑on investment to those portfolio companies which require it and which is supported by the individual investment case.	Increased exposures reflected in the previous periods remain and have heightened further as economic uncertainty persists through high inflation, high interest rates and other economic factors.
*Risk*	*Mitigation*	*Change*
Legislative:
A change to the VCT regulations could adversely impact Titan by restricting the companies Titan can invest in under its current strategy. Similarly, changes to VCT tax reliefs for investors could make VCTs less attractive and impact Titan’s ability to raise further funds.	The Portfolio Manager engages with HM Treasury and industry bodies to demonstrate the positive benefits of VCTs in terms of growing early-stage companies, creating jobs and increasing tax revenue, and to help shape any change to VCT legislation.	Risk exposure has continued to reduce since the previous period following the extension of the sunset clause to 2035 being agreed.
*Risk*	*Mitigation*	*Change*
Liquidity:
The risk that Titan’s available cash will not be sufficient to meet its financial obligations. Titan invests in smaller unquoted companies, which are inherently illiquid as there is no readily available market for these shares. Therefore, these may be difficult to realise for their fair market value at short notice.	Titan’s liquidity risk is managed on a continuing basis by Octopus in accordance with policies and procedures agreed by the Board. Titan’s overall liquidity risks are monitored on a quarterly basis by the Board, with frequent budgeting and close monitoring of available cash resources. Titan maintains sufficient investments in cash and readily realisable securities to meet its financial obligations. At 31 December 2024, these investments were valued at £183,770,000 (2023: £199,841,000), which represents 22% (2023: 20%) of the net assets of Titan. The Board also reviews the cash runway in the portfolio.	Risk exposure has continued to increase, reflecting economic uncertainty, the impact on fundraising and the risk of failing to exit portfolio companies.
*Risk*	*Mitigation*	*Change*
Valuation:
The portfolio investments are valued in accordance with International Private Equity and Venture Capital (IPEV) valuation guidelines. This means companies are valued at fair value. As the portfolio comprises smaller unquoted companies, establishing fair value can be difficult due to the lack of a readily available market for the shares of such companies and the potentially limited number of external reference points.	Valuations of portfolio companies are performed by appropriately experienced staff, with detailed knowledge of both the portfolio company and the market it operates in. These valuations are then subject to review and approval by Octopus’ Valuation Committee, comprised of staff who are independent of Octopus Ventures with relevant knowledge of unquoted company valuations, as well as Titan’s Board of Directors.	Risk exposure remains unchanged from the previous period due to economic uncertainty within valuation modelling.
*Risk*	*Mitigation*	*Change*
Foreign currency exposure:
Investments held and revenues generated in other currencies may not generate the expected level of returns due to changes in foreign exchange rates.	Octopus and the Board regularly review the exposure to foreign currency movement to make sure the level of risk is appropriately managed. Investments are primarily made in GBP, EUR and USD so exposure is limited to a small number of currencies. On realisation of investments held in foreign currencies, cash is converted to GBP shortly after receiving the proceeds to limit the amount of time exposed to foreign currency fluctuations.	Risk exposure has not changed since the previous period.

Viability statement

In accordance with the FRC UK Corporate Governance Code published in 2018 and provision 36 of the AIC Code of Corporate Governance, the Directors have assessed the prospects of Titan over a period of five years, consistent with the expected investment hold period of a VCT investor. Under VCT rules, subscribing investors are required to hold their investment for a five-year period in order to benefit from the associated tax reliefs. The Board regularly considers strategy, including investor demand for Titan’s shares, and a five-year period is considered to be a reasonable time horizon for this.

The Board carried out a robust assessment of the emerging and principal risks facing Titan and its current position, including risks which may adversely impact its business model, future performance, solvency or liquidity, and focused on the major factors which affect the economic, regulatory and political environment. Particular consideration was given to Titan’s reliance on, and close working relationship with, the Portfolio Manager.

The Board has carried out robust stress testing of cash flows which included assessing the resilience of portfolio companies, including the requirement for any future financial support and the ability to pay dividends, and buybacks.

The Board has additionally considered the ability of Titan to comply with the ongoing conditions to make sure it maintains its VCT qualifying status under its current Investment policy.

Based on this assessment the Board confirms that it has a reasonable expectation that Titan will be able to continue in operation and meet its liabilities as they fall due over the five-year period to 31 December 2029. The Board is mindful of the ongoing risks and will continue to make sure that appropriate safeguards are in place, in addition to monitoring the cash flow forecasts to ensure Titan has sufficient liquidity.

Directors’ responsibilities statement

The Directors are responsible for preparing the Strategic Report, the Directors’ Report, the Directors’ Remuneration Report and the financial statements in accordance with applicable law and regulations. They are also responsible for ensuring that the annual report and financial statements include information required by the Listing Rules of the Financial Conduct Authority.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (GAAP), including Financial Reporting Standard 102 – ‘The Financial Reporting Standard Applicable in the United Kingdom and Republic of Ireland’ (FRS 102), (United Kingdom accounting standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and profit or loss of the Company for that period. In preparing these financial statements, the Directors are required to:

select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business; and
prepare a Strategic Report, Directors’ Report and Directors’ Remuneration Report which comply with the requirements of the Companies Act 2006.

Insofar as each of the Directors is aware:

there is no relevant audit information of which the Company’s auditor is unaware; and
the Directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

The Directors confirm that, to the best of their knowledge:

the financial statements, prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company; and
the annual report and financial statements (including the Strategic Report), give a fair review of the development and performance of the business and the position of the Company, together with a description of the principal risks and uncertainties that it faces.

On behalf of the Board

Tom Leader
Chair

Income statement

	Year to 31 December 2024			Year to 31 December 2023
	Revenue	Capital	Total	Revenue	Capital	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Gain/(loss)/gain on disposal of fixed asset investments	—	5,184	5,184	—	(1,870)	(1,870)
Gain on disposal of current asset investments	—	563	563	—	355	355
Loss on valuation of fixed asset investments	—	(136,894)	(136,894)	—	(131,655)	(131,655)
Gain on valuation of current asset investments	—	4,439	4,439	—	8,098	8,098
Investment income	4,215	—	4,215	4,467	—	4,467
Investment management fee	(954)	(18,125)	(19,079)	(1,054)	(20,028)	(21,082)
Other expenses	(6,072)	—	(6,072)	(6,264)	—	(6,264)
Foreign exchange translation	—	(5)	(5)	—	(1,548)	(1,548)
Loss before tax	(2,811)	(144,838)	(147,649)	(2,851)	(146,648)	(149,499)
Tax	—	—	—	—	—	—
Loss after tax	(2,811)	(144,838)	(147,649)	(2,851)	(146,648)	(149,499)
Loss per share – basic and diluted	(0.2)p	(8.8)p	(9.0)p	(0.2)p	(9.7)p	(9.9)p

The ‘Total’ column of this statement is the profit and loss account of Titan. The supplementary revenue return and capital return columns have been prepared under guidance published by the Association of Investment Companies.
All revenue and capital items in the above statement derive from continuing operations.
Titan has only one class of business and derives its income from investments made in shares and securities, and from bank and money market funds.

Titan has no other comprehensive income for the period.

The accompanying notes form an integral part of the financial statements.

Balance sheet

	As at 31 December 2024		As at 31 December 2023
	£’000	£’000	£’000	£’000
Fixed asset investments		640,797		791,403
Current assets:
Money market funds	93,523		91,172
Corporate bonds	90,247		108,669
Applications cash¹	22		17,842
Cash at bank	213		2,970
Debtors	8,412		1,218
		192,417		221,871
Creditors: amounts falling due within one year	(1,856)		(19,530)
Net current assets		190,561		202,341

Net assets		831,358		993,744

Share capital		1,647		1,594
Share premium		—		45,780
Capital redemption reserve		141		74
Special distributable reserve		1,056,537		1,025,614
Capital reserve realised		(125,444)		(89,570)
Capital reserve unrealised		(57,285)		51,674
Revenue reserve		(44,238)		(41,422)

Total equity shareholders’ funds		831,358		993,744

NAV per share		50.5p		62.4p

Funds raised from investors since Titan opened for new investment which have not been allotted as at year end.

The accompanying notes form an integral part of the financial statements.

The statements were approved by the Directors and authorised for issue on 28 April 2025 and are signed on their behalf by:

Tom Leader, Chair
Company Number 06397765

Statement of changes in equity

			Capital	Special	Capital	Capital
	Share	Share	redemption	distributable	reserve	reserve	Revenue
	capital	premium	reserve	reserve¹	realised¹	unrealised	reserve¹	Total
	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
As at 1 January 2024	1,594	45,780	74	1,025,614	(89,570)	51,674	(41,422)	993,744
Comprehensive income for the year:
Management fees allocated as capital expenditure	—	—	—	—	(18,125)	—	—	(18,125)
Current year gain on disposal of fixed asset investments	—	—	—	—	5,184	—	—	5,184
Current year gain on disposal of current asset investments	—	—	—	—	563	—	—	563
Loss on fair value of fixed asset investments	—	—	—	—	—	(136,894)	—	(136,894)
Gain on fair value of current asset investments	—	—	—	—	—	4,439	—	4,439
Loss after tax	—	—	—	—	—	—	(2,811)	(2,811)
Foreign exchange translation	—	—	—	—	—	—	(5)	(5)
Total comprehensive income for the year	—	—	—	—	(12,378)	(132,455)	(2,816)	(147,649)
Contributions by and distributions to owners:
Share issue (includes DRIS)	120	76,664	—	—	—	—	—	76,784
Share issue costs	—	(1,893)	—	—	—	—	—	(1,893)
Repurchase of own shares	(67)	—	67	(37,986)	—	—	—	(37,986)
Dividends paid (includes DRIS)	—	—	—	(51,642)	—	—	—	(51,642)
Total contributions by and distributions to owners	53	74,771	67	(89,628)	—	—	—	(14,737)
Other movements:
Share premium cancellation	—	(120,551)	—	120,551	—	—	—	—
Prior year fixed asset gains now realised	—	—	—	—	7,473	(7,473)	—	—
Prior year current asset losses now realised	—	—	—	—	(74)	74	—	—
Transfer between reserves	—	—	—	—	(30,895)	30,895	—	—
Total other movements	—	(120,551)	—	120,551	(23,496)	23,496	—	—
Balance as at 31 December 2024	1,647	—	141	1,056,537	(125,444)	(57,285)	(44,238)	831,358

Reserves are available for distribution, subject to the restrictions.

The accompanying notes form an integral part of the financial statements.

			Capital	Special	Capital	Capital
	Share	Share	redemption	distributable	reserve	reserve	Revenue
	capital	premium	reserve	reserve¹	realised¹	unrealised	reserve¹	Total
	£’000	£’000	£’000	£’000	£’000	£’000	£’000	£’000
As at 1 January 2023	1,368	92,896	27	887,288	(53,430)	160,634	(37,023)	1,051,760
Comprehensive income for the year:
Management fees allocated as capital expenditure	—	—	—	—	(20,028)	—	—	(20,028)
Current year loss on disposal of fixed asset investments	—	—	—	—	(1,870)	—	—	(1,870)
Current year gain on disposal of current asset investments	—	—	—	—	355	—	—	355
Loss on fair value of fixed asset investments	—	—	—	—	—	(131,655)	—	(131,655)
Gain on fair value of current asset investments	—	—	—	—	—	8,098	—	8,098
Loss after tax	—	—	—	—	—	—	(2,851)	(2,851)
Foreign exchange translation	—	—	—	—	—	—	(1,548)	(1,548)
Total comprehensive income for the year	—	—	—	—	(21,543)	(123,557)	(4,399)	(149,499)
Contributions by and distributions to owners:
Share issue (includes DRIS)	273	207,132	—	—	—	—	—	207,405
Share issue costs	—	(5,737)	—	—	—	—	—	(5,737)
Repurchase of own shares	(47)	—	47	(32,422)	—	—	—	(32,422)
Dividends paid (includes DRIS)	—	—	—	(77,763)	—	—	—	(77,763)
Total contributions by and distributions to owners	226	201,395	47	(110,185)	—	—	—	91,483
Other movements:
Share premium cancellation	—	(248,511)	—	248,511	—	—	—	—
Prior year current asset losses now realised	—	—	—	—	(355)	355	—	—
Transfer between reserves	—	—	—	—	(14,242)	14,242	—	—
Total other movements	—	(248,511)	—	248,511	(14,597)	14,597	—	—
Balance as at 31 December 2023	1,594	45,780	74	1,025,614	(89,570)	51,674	(41,422)	993,744

Reserves are available for distribution, subject to the restrictions.

The accompanying notes form an integral part of the financial statements.

Cash flow statement

	Year to 31 December	Year to 31 December
	2024	2023
	£’000	£’000
Reconciliation of profit to cash flows from operating activities
Loss before tax¹	(147,649)	(149,499)
Decrease in debtors²	279	3,671
Decrease/(increase) in creditors	146	(440)
Gain on disposal of current asset investments	(563)	(355)
Gain on valuation of current asset investments	(4,439)	(8,098)
Gain on disposal of fixed asset investments	(5,184)	(1,111)
Loss on valuation of fixed asset investments	136,894	131,655
Outflow from operating activities	(20,516)	(24,177)
Cash flows from investing activities
Sale of current asset investments	23,424	4,028
Purchase of fixed asset investments	(30,011)	(97,650)
Proceeds from sale of fixed asset investments³	41,432	45,637
Inflow/(outflow) from investing activities	34,845	(47,985)
Cash flows from financing activities
Movement in applications account	(17,820)	(5,457)
Dividends paid (net of DRIS)	(43,881)	(58,210)
Purchase of own shares	(37,986)	(32,422)
Share issues (net of DRIS)	69,025	187,852
Share issue costs	(1,893)	(5,737)
(Outflow)/inflow from financing activities	(32,555)	86,026
Increase/(decrease) in cash and cash equivalents	(18,226)	13,864
Opening cash and cash equivalents	111,984	98,120
Closing cash and cash equivalents	93,758	111,984
Cash and cash equivalents comprise
Cash at bank	213	2,970
Applications cash	22	17,842
Money market funds	93,523	91,172
Closing cash and cash equivalents	93,758	111,984

Loss before tax includes cashflows from dividends of £4.2 million (2023: £4.2 million).
Movement in debtors, net of disposal proceeds received in the year £41.4 million, with £40.9 million relating to current year disposals and £0.5 million relating to prior year disposals.
Of these proceeds, £12.4 million was distributed from Zenith Holding Company, a wholly owned subsidiary of Titan, to Titan during the year.

The accompanying notes form an integral part of the financial statements.

Notes to the financial statements

1. Principal accounting policies

Titan is a Public Limited Company (plc) incorporated in England and Wales and its registered office is at 6th Floor, 33 Holborn, London EC1N 2HT.

Titan has been approved as a Venture Capital Trust by HMRC under Section 259 of the Income Taxes Act 2007. The shares of Titan were first admitted to the Official List of the UK Listing Authority and trading on the London Stock Exchange on 28 December 2007 and can be found under the TIDM code OTV2. Titan is premium listed.

The principal activity of Titan is to invest in a diversified portfolio of UK smaller companies in order to generate capital growth over the long term as well as an attractive tax-free dividend stream.

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, except for the measurement at fair value of certain financial instruments, and in accordance with UK Generally Accepted Accounting Practice (GAAP), including Financial Reporting Standard 102 – ‘The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland’ (FRS 102), and with the Companies Act 2006 and the Statement of Recommended Practice (SORP) ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts (July 2022)’.

2. Investment income
Accounting policy
Investment income includes interest earned on money market funds. Dividend income is shown net of any related tax credit.

Dividends receivable are brought into account when Titan’s right to receive payment is established and there is no reasonable doubt that payment will be received. Fixed returns on debt and money market funds are recognised so as to reflect the effective interest rate, provided there is no reasonable doubt that payment will be received in due course.

Disclosure

	Year to	Year to
	31 December	31 December
	2024	2023
	£’000	£’000
Money market funds	4,215	4,154
Loan note interest receivable	—	313
Total investment income	4,215	4,467

In the current year, accrued loan note interest income is treated to be included in the fair value of investments. The opening balance of accrued loan interest has been reclassified to be included in the fair value of investments. This reclassification amends the balance previously reported as of 31 December 2023.

3. Investment management fees
Accounting policy

For the purposes of the revenue and capital columns in the Income Statement, the management fee has been allocated 5% to revenue and 95% to capital, in line with the Board’s expected long-term return in the form of income and capital gains respectively from Titan’s investment portfolio.

Disclosure

	Year to 31 December 2024			Year to 31 December 2023
	Revenue	Capital	Total	Revenue	Capital	Total
	£’000	£’000	£’000	£’000	£’000	£’000
Investment
management fee	954	18,125	19,079	1,054	20,028	21,082

The Portfolio Manager provides investment management services through agreements with Octopus AIF Management Limited and Titan. It also provides non-investment services to Titan under a non-investment services agreement. No compensation is payable if the agreement is terminated by either party, if the required notice period is given. The fee payable, should insufficient notice be given, will be equal to the fee that would have been paid should continuous service be provided, or the required notice period was given. The basis upon which the management fee is calculated is disclosed within the Annual Report and financial statements.

4. Other expenses
Accounting policy

Other expenses are accounted for on an accruals basis and are charged wholly to revenue.

The transaction costs incurred when purchasing or selling assets are written off to the Income Statement in the period that they occur.

	Year to	Year to
	31 December	31 December
	2024	2023
	£’000	£’000
Ongoing adviser and non-advised charges	2,111	2,370
Non-investment services fee¹	2,078	2,020
Other fees	780	480
Directors’ remuneration²	263	192
Audit fees	204	191
Registrar’s fees	196	200
Depositary fees	187	270
Listing fees	136	401
Directors and Officers (D&O) insurance	117	123
Impairment of accrued loan note interest receivable	—	17
Total	6,072	6,264

For further information please see note 9.
Includes employers’ NI.

Total ongoing charges are capped at 2.5% of net assets. For the year to 31 December 2024, the ongoing charges were 2.5% of net assets (2023: 2.4%). This is calculated by summing the expenses incurred in the period (excluding ongoing IFA charges and non‑recurring expenses) divided by the average NAV throughout the period.

5. Tax on ordinary activities
Accounting policy

Disclosure
The corporation tax charge for the period was £nil (2023: £nil).

	Year to	Year to
	31 December	31 December
	2024	2023
	£’000	£’000
Loss on ordinary activities before tax	(147,649)	(149,499)
Current tax at 25% (2023: 23.5%)	(36,912)	(35,163)
Effects of:
Non‑taxable income	(1,054)	(977)
Non‑taxable capital loss	31,677	29,418
Non‑deductible expenses	55	71
Zenith distribution¹	3,100	—
Excess management expenses on which deferred tax not recognised	3,134	7,070
Tax rate differences²	—	(419)
Total current tax charge	—	—

1. £12.4 million was distributed from Zenith Holding Company to Titan in the year which is taxable income for Titan.
2. Tax rate difference in the year to 31 December 2023 due to tax charge for the year being calculated at 19% and excess management expenses on which deferred tax is not recognised being calculated at 25%.

Unrelieved tax losses of £227,486,000 (2023: £214,949,000) are estimated to be carried forward at 31 December 2024 (subject to completion of Titan’s tax return) and are available for offset against future taxable income, subject to agreement with HMRC. Titan has not recognised the deferred tax asset of £56,871,000 (2023: £53,737,000) in respect of these tax losses because there is insufficient forecast taxable income in excess of deductible expenses to utilise these losses carried forward. There is no expiry period on these deductible expenses under the UK HMRC legislation.

Approved VCTs are exempt from tax on capital gains. As the Directors intend for Titan to continue to maintain its approval as a VCT through its affairs, no current deferred tax has been recognised in respect of any capital gains or losses arising on the revaluation or disposal of investment.

6. Dividends
Accounting policy

Dividends payable are recognised as distributions in the financial statements when Titan’s liability to make the payment has been established. This liability is established on the record date, the date on which those shareholders on the share register are entitled to the dividend.

Disclosure

	Year to	Year to
	31 December	31 December
	2024	2023
	£’000	£’000
Dividends paid in the year
Previous year’s second interim dividend – 1.9p (2023: 3.0p)	31,876	46,127
Current year’s interim dividend – 1.2p (2023: 2.0p)	19,767	31,636
Total	51,643	77,763

Dividends in respect of the year
Interim dividend – 1.2p (2023: 2.0p)	19,767	31,636
Second interim dividend – 0.5p (2023: 1.9p)	8,236	31,876
Total	28,003	63,512

The figures above include dividends elected to be reinvested through the DRIS.

The second interim dividend of 0.5p for the period ending 31 December 2024 will be paid on 29 May 2025 to shareholders on the register on 25 April 2025, this equates to 1% of the Company’s opening NAV per share.

7. Earnings per share

	Year to 31 December 2024			Year to 31 December 2023
	Revenue	Capital	Total	Revenue	Capital	Total
Loss attributable to Ordinary shareholders (£’000)	(2,811)	(144,838)	(147,649)	(2,851)	(146,648)	(149,499)
Loss per Ordinary share (p)	(0.2)p	(8.8)p	(9.0)p	(0.2)p	(9.7)p	(9.9)p

The total loss per share is based on 1,644,900,726 (2023: 1,506,111,802) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year.

There are no potentially dilutive capital instruments in issue and so no diluted return per share figures are relevant. The basic and diluted earnings per share are therefore identical.

8. Net asset value per share

	31 December	31 December
	2024	2023
Net assets (£)	831,358,000	993,744,000
Ordinary shares in issue	1,647,212,355	1,593,601,092
NAV per share (p)	50.5	62.4

9. Transactions with the Manager and Portfolio Manager

Since 1 September 2017, Titan has been classified as a full-scope Alternative Investment Fund under the Alternative Investment Fund Management Directive (the ‘AIFM Directive’). As a result, since 1 September 2017, Titan’s investment management agreement was assigned by way of the deed of novation from Octopus Investments Limited to Octopus AIF Management Limited to act as Manager (an authorised alternative investment fund manager responsible for ensuring compliance with the AIFM Directive). Octopus AIF Management Limited has in turn appointed Octopus Investments Limited to act as Portfolio Manager to Titan (responsible for portfolio management and the day-to-day running of Titan).

Titan paid Octopus AIF Management Limited £19,079,000 (2023: £21,082,000) in the period as a management fee. The annual management charge (AMC) is based on 2% of Titan’s NAV in respect of existing funds but in respect of funds raised by Titan under the 2018 Offer and thereafter (and subject to Titan having a cash reserve of 10% of its NAV), the AMC on uninvested cash is the lower of either (i) the actual return that Titan receives on its cash and funds that are the equivalent of cash (which currently consist of corporate bonds and money market funds) subject to a 0% floor and (ii) 2% of Titan’s NAV. The AMC is payable quarterly in advance and calculated using the latest published NAV of Titan and the number of shares in issue at each quarter end.

Octopus provides non-investment services to the Company and receives a fee for these services which is capped at the lower of (i) 0.3% per annum of the Company’s NAV or (ii) the administration and accounting costs of the Company for the year ended 31 December 2020 with inflation increases in line with the Consumer Price Index. During the period, the Company paid £2,078,000 (2023: £2,020,000) to Octopus for the non‑investment services.

In addition, Octopus is entitled to performance-related incentive fees. The incentive fees were designed to ensure that there were significant tax-free dividend payments made to shareholders as well as strong performance in terms of capital and income growth, before any performance-related fee payment was made.

Due to performance in the year, the total value has decreased to 155.6p, representing a total loss of 8.8p. Therefore, the high water mark for the 2025 financial year remains at 197.7p.

If, on a subsequent financial year end, the performance value of Titan falls short of the high water mark on the previous financial year end, no performance fee will arise. If, on a subsequent financial year end, the performance exceeds the previous best high water mark of Titan, the Manager will be entitled to 20% of such excess in aggregate.

Octopus received £39,000 in the period to 31 December 2024 (2023: £36,000) in regard to arrangement and monitoring fees in relation to investments made on behalf of Titan. Since 31 October 2018, Octopus no longer receives such fees in respect of new investments or any such new fees in respect of further investments into portfolio companies in which Titan invested on or before 31 October 2018, with any such fees received after that time being passed to Titan.

The cap relating to Titan’s total ongoing charges ratio, that is the regular, recurring costs of Titan expressed as a percentage of its NAV, above which Octopus has agreed to pay, is 2.5%, and is calculated in accordance with the AIC Guidelines.

10. Related party transactions

Titan owns Zenith Holding Company Limited, which owns a share in Zenith LP, a fund managed by Octopus.

In the year, Octopus Investments Nominees Limited (OINL) has purchased Titan shares from shareholders to correct administrative issues, on the understanding that shares will be sold back to Titan in subsequent share buybacks. As at 31 December 2024, no Titan shares were held by OINL (2023: no shares) as beneficial owner. Throughout the period to 31 December 2024, OINL purchased 65,000 shares (2023: 1,883,000 shares) at a cost of £36,000 (2023: £1,563,000) and sold 65,000 shares (2023: 1,883,000 shares) for proceeds of £34,000 (2023: £1,353,000). This is classed as a related party transaction as Octopus, the Portfolio Manager, and OINL are part of the same group of companies. Any such future transactions, where OINL takes over the legal and beneficial ownership of Company shares, will be announced to the market and disclosed in annual and half‑yearly reports.

Several members of the Octopus investment team hold non-executive directorships as part of their monitoring roles in Titan’s portfolio companies, but they have no controlling interests in those companies.

Details of the Directors and their remuneration can be found in the Directors’ Remuneration Report.

The Directors received the following dividends from Titan:

	Year to	Year to
	31 December	31 December
	2024	2023
	£	£
Jane O’Riordan	4,766	6,901
Tom Leader	1,464	1,889
Lord Rockley	2,406	2,776
Julie Nahid Rahman	138	89
Gaenor Bagley Rupert Dickinson	738 —	901 —

11. 2024 financial information

The figures and financial information for the year ended 31 December 2024 are extracted from the Company’s annual financial statements for the period and do not constitute statutory accounts. The Company’s annual financial statements for the year to 31 December 2024 have been audited but have not yet been delivered to the Registrar of Companies. The Auditors’ report on the 2024 annual financial statements was unqualified, did not include a reference to any matter to which the auditors drew attention without qualifying the report, and did not contain any statements under Sections 498(2) or 498(3) of the Companies Act 2006.

12. 2023 financial information

The figures and financial information for the period ended 31 December 2023 are compiled from an extract of the published financial statements for the period and do not constitute statutory accounts. Those financial statements have been delivered to the Registrar of Companies and included the Auditors’ report which was unqualified, did not include a reference to any matter to which the auditors drew attention without qualifying the report, and did not contain any statements under Sections 498(2) or 498(3) of the Companies Act 2006.

13. Annual Report and financial statements

The Annual Report and financial statements will be posted to shareholders in early May and will be available on the Company’s website, octopustitanvct.com. The Notice of Annual General Meeting is contained within the Annual Report.

14. General information

Registered in England & Wales. Company No. 06397765
LEI: 213800A67IKGG6PVYW75

15. Directors

Tom Leader (Chair), Jane O’Riordan, Lord Rockley, Gaenor Bagley, Julie Nahid Rahman and Rupert Dickinson.

16. Secretary and registered office

Octopus Company Secretarial Services Limited
6^th Floor, 33 Holborn, London EC1N 2HT

The MIL Network –

April 29, 2025

MIL-OSI: Open Dialogue ‘Future of the World. New Platform for Global Growth’ Launches at Russia National Centre

Source: GlobeNewswire (MIL-OSI)

MOSCOW, RUSSIA, April 29, 2025 (GLOBE NEWSWIRE) — More than one hundred representatives from 48 countries have gathered in Moscow at the National Centre “Russia” for the Open Dialogue ‘Future of the World. New Platform for Global Growth’.

This first-of-its-kind event aims to create a discussion platform for addressing the future of the global economy. The Open Dialogue will run from April 28 to 30.

Maxim Oreshkin, Deputy Chief of Staff of the Presidential Administration of the Russian Federation, participated in the opening ceremony. He emphasised that this open international event is being held for the first time and noted the importance of forming a new global economy.

“I want to welcome you today here in Moscow, at the National Centre “Russia”. Indeed, this is our first time holding such an open international event. Together, we will discuss new ideas, develop new projects, and then implement them for the benefit of our countries, humanity, and our people. Thank you very much. Welcome to Moscow,” said Maxim Oreshkin.

As part of the Open Dialogue, 696 works were collected from 102 countries, written in 18 languages, including Pashto, Malagasy, Serbian, Greek, and others. Authors expressed the greatest interest in the topic “Investment in People” (41%), followed by “Investment in Connectivity” (24%), “Investment in Technology” (22%), and “Investment in Environment” (13%). Expert pitch sessions will be held on each of these topics.

“We have launched a truly Open Dialogue, where we received about 700 essays from more than 100 countries worldwide. People from all corners of the globe, from all continents, expressed their ideas about what needs to be done and what interesting projects need to be implemented for the world to move forward,” added Maxim Oreshkin.

Participants in the Open Dialogue represent 48 countries from all continents. More than 200 online interviews allowed organizers to select 101 authors invited to Moscow for in-person participation. Along with them, 24 world-class experts—scientists, economists, students, young professionals, journalists, and representatives of the business community—are participating in the dialogue.

The format of the Open Dialogue is unique: in the context of the emerging new economic reality, participants are invited to present their hypotheses, ideas, and scientific developments on the principles of equality, mutual respect, and cooperation for the benefit of humanity. Over three days, participants will seek solutions to key contemporary challenges and form guidelines for the development of the future world.

Social Links

Telegram: https://t.me/gowithRussia

VK: https://vk.com/gowithrussia

OK.Ru: https://ok.ru/gowithrussia

Dzen.Ru: https://dzen.ru/gowithrussia

Media contact

Organization: Russia National Centre

Contact: Media team

Email: info@strategycom.info

The MIL Network –

April 29, 2025
MIL-OSI Global: Game change Canadian election: Mark Carney leads Liberals to their fourth consecutive win

Source: The Conversation – Canada – By Fiona MacDonald, Associate Professor, Political Science, University of Northern British Columbia

Canada’s 2025 federal election will be remembered as a game-changer. Liberal Leader Mark Carney pulled off a dramatic reversal of political fortunes after convincing voters he was the best candidate to fight annexation threats from United States President Donald Trump.

“Together we will build a Canada worthy of our values,” he told cheering supporters in his victory speech in Ottawa.

Canadians gave the Liberals their fourth mandate since 2015, although the race against the Conservatives was much closer than polls predicted.

Nonetheless, only four months ago, Conservative Leader Pierre Poilievre had a 25-point lead in public opinion polls and a fairly secure path to victory.

Yet Poilievre’s lead soon vanished due to shifting voter sentiments defined less by the official campaign period and more by the months that preceded it. Justin Trudeau’s early January resignation announcement and Carney’s confirmation that he was officially in the Liberal leadership race dramatically changed the political landscape.

Read more:
After stunning comeback, centre-left Liberals likely to win majority of seats at Canadian election

Within a matter of weeks, Liberal support surged when Carney became party leader and Trump continued to make threats about Canada becoming a 51st American state — and to levy punishing on-again, off-again tariffs against the country.

The party went from being 20 percentage points behind the Conservatives to overtaking them, putting the party on track to secure its fourth consecutive victory. A shift described by longtime pollster Frank Graves as “unprecedented.”

Poilievre’s messaging

The emerging “Canada strong” and “elbows up” narratives, linked to the widespread anti-Trump sentiment, proved a major advantage for the Liberals, who made the most out of this political gift.

This shift, alongside Carney’s elimination of the carbon tax, left Poilievre on the back foot as his longstanding messaging on Trudeau and his “axe the tax” slogan became largely irrelevant.

Read more:
Who really killed Canada’s carbon tax? Friends and foes alike

The impact of these shifts in electoral fortunes extended beyond the two main parties. As the election became increasingly a two-party race between the Liberals and Conservatives, the smaller parties struggled for relevance.

Election campaign polling and early results indicated steep losses for the NDP, with Jagmeet Singh losing his own seat in Burnaby, B.C. and then resigning as party leader. This could be due to voters on the left responding to calls to vote strategically to prevent Conservative victories in various ridings.

The Bloc Québecois also lost ground, as did the Green Party of Canada and the People’s Party of Canada (PPC). Neither the Greens nor the PPC fielded full slates of candidates or participated in the leaders’ debates and therefore played comparatively limited roles in this election.

Advance voting in a gendered election

Another notable feature of this election was the record advance voting turnout, which surged to 7.3 million Canadians, up sharply from 5.8 million in 2021.

Early voting has now become a central part of party campaign strategy, with campaigns “getting out the vote” at every opportunity, not just on Election Day. This trend raises questions not only about whether overall turnout will rise, but also whether party platforms remain as influential given so many votes were cast before all parties released their platforms.

While many Canadians take in elections with a focus on party leaders and seat counts, there are other important ways to contemplate election outcomes in terms of inclusion and voice. What does this election tell us about gender and diversity representation in Canada’s Parliament?

This was a deeply gendered election. The major party leaders are all men, with the exception of Elizabeth May, the Green Party co-leader.

Preliminary candidate data showed a decrease in the number of women candidates compared to 2021.

The NDP nominated the highest proportion of women candidates — the majority of its candidates are women — and fielded the most diverse slate of candidates in terms of Indigenous people, Black people, racialized people and LGBTQ+ candidates. But the party’s dramatic losses mean these gains will not translate into more diverse representation in Parliament.

Furthermore, one of Carney’s first actions as prime minister was to eliminate the sex-balanced cabinet and to reduce the size of the cabinet. He eliminated the Ministry of Women and Gender Equality (WAGE) as well as ministerial portfolios focused on youth, official languages, diversity, inclusion, disability and seniors.

These decisions reverse previous efforts taken to institutionalize gender and diversity leadership in Canada’s Parliament.

Party platforms also reflected diverging approaches when it came to women. The Conservative platform only mentioned women four times, and three of those mentions were in the context of opposition to transgender rights.

Read more:
Pierre Poilievre’s ‘More Boots, Less Suits’ election strategy held little appeal to women

The role of young working-class men

Polling also revealed intersections of generation, gender and class are increasingly relevant. Like the last federal election, young working-class men are increasingly drawn to the Conservatives. This trend appears to be driven less by fiscal conservatism and more by concerns about rapid social change, a trend also observed in the 2024 American presidential election.

Many of these young men are expressing frustrations over housing affordability and job security, and what they view as the Liberal and NDP’s “woke culture,” which they view as eroding traditional values that have traditionally benefited men. In contrast, Canadian women of all ages continue to favour parties they view as more progressive — the Liberals and the NDP.

Theoretical explanations for this include young men feeling left behind by the Liberals, while the Conservatives have seemingly figured out a way to connect with them.

This may reflect campaign rhetoric about returning to traditional expectations and values around gender roles and men’s rights to well-paying jobs, an affordable home and taking care of their families.

Electoral reform needed?

In the aftermath of the election, there are avenues through which current gaps in representation can be addressed. Organizations like the United Nations’ Inter-parliamentary Union and the Commonwealth Parliamentary Association, as well as gender and politics scholarship, propose various reforms to continue to strengthen diversity in Parliament.

These reforms are understood to be essential for enhancing the legitimacy, responsiveness and effectiveness of Canada’s parliamentary system. Research on gender-and diversity-sensitive parliaments consistently shows that when legislative bodies reflect the diversity of the societies they govern, they are more likely to produce policies that are equitable, inclusive and trusted by the public.

Overall, this Canadian election was characterized by transformative twists and turns that shed more light on important ongoing questions about representation and the potential need for democratic reform if Canadians want to avoid a two-party system.

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Game change Canadian election: Mark Carney leads Liberals to their fourth consecutive win – https://theconversation.com/game-change-canadian-election-mark-carney-leads-liberals-to-their-fourth-consecutive-win-253721

MIL OSI – Global Reports –

April 29, 2025
MIL-Evening Report: Tempted to turn on the aircon? Science says use fans until it’s 27°C
Source: The Conversation (Au and NZ) – By Federico Tartarini, Senior Lecturer, School of Architecture Design and Planning, University of Sydney

New Africa, Shutterstock

Many Australians struggle to keep themselves cool affordably and effectively, particularly with rising electricity prices. This is becoming a major health concern, especially for our most vulnerable people such as the elderly, pregnant women and people with cardiovascular diseases.

Air conditioning is often seen as the only solution to this problem. But relying too heavily on aircon has major downsides. These include hefty electricity bills, increased greenhouse gas emissions, strain on an already weak electricity grid, and dumping heat from buildings to the outside – further heating the outdoor air.

Our latest research, published in the Medical Journal of Australia, highlights a simple yet effective solution: a “fan-first” cooling approach.

The approach is simple: use electric fans as your first cooling strategy, and only turn on air conditioning when the indoor temperature exceeds 27°C.

Fan-First Cooling: The Smart Way to Beat Australia’s Heat Crisis (Federico Tartarini)

The solution: ‘fan-first’ cooling

Electric fans can make you feel more comfortable on a hot day simply by moving the air around you. This helps our body release heat in two ways: improving the transfer heat from your body into the air, and increasing the evaporation of sweat from your skin.

A gentle breeze can make you feel up to 4°C cooler, even when the weather is very hot and humid.

This allows you to increase the aircon set-point (the temperature at which cooling turns on) from 23-24°C to 27-28°C. This simple change can significantly reduce the amount of time your aircon is running, leading to substantial energy savings.

For example, in our previous research we showed raising the office air conditioning set-point from 24 to 26.5°C, with supplementary air movement from desk and ceiling fans, reduced energy consumption by 32%, without compromising thermal comfort.

Don’t fans still use electricity to run?

Yes fans still use electricity, but it’s as little as 3% of the electricity used to run air conditioning. That means you can run more than 30 fans with the same amount of energy it takes to run a single aircon unit.

A basic pedestal fan is cheap to buy (A$20 to $150), requires no installation and minimal maintenance, and can be easily moved around to keep you cool in any part of your house. Simply turn on the fan as soon as you start feeling slightly warm.

Fans cool you, whereas aircon cools the whole space, which is less efficient.

We also previously showed that using fans rather than airconditioning is a more effective emissions reduction strategy than switching from old-fashioned incandescent light bulbs to LED lighting.

The problem with over-reliance on aircon

Globally, the use of air conditioning is rapidly increasing. Aircon units sales have tripled since 1990 and are projected to triple again in 2050. It is becoming the go-to solution to heat management.

Aircon is effective but is expensive to buy, run and maintain.

A recent survey showed while most people have aircon, two thirds did not use it due to cost concerns.

Beyond the financial burden, the environmental impact of aircon is substantial. In Australia, electricity mainly comes from burning fossil fuels, creating greenhouse gas emissions. Even with the growth of renewable energy, the sheer demand for aircon cooling could strain the transition and the grid.

Furthermore, the refrigerants used in most aircon units are potent greenhouse gases. It will also take time to replace older and less efficient aircon units.

Aircon units also release heat into the outdoor environment, worsening the urban heat island effect – the phenomenon where cities are significantly warmer than surrounding rural areas.

Finally, over-reliance on aircon might reduce our ability to cope with heat. If we constantly keep our indoor temperatures very low, our bodies may not acclimatise to warmer summer conditions, making us more vulnerable during power outages.

Annual sales of air conditioning units have more than tripled globally since 1990.
aapsky, Shutterstock

Using fans safely and effectively

While fans offer numerous benefits, it’s important to use them correctly, especially in very hot indoor conditions.

There’s a common misconception that fans should be turned off above 35°C because they might blow hot air onto the skin. This ignores the crucial role fans play in evaporating sweat.

We have established safer and more accurate temperature thresholds for fan use by conducting laboratory studies. Just remember to check the temperature indoors, not outdoors.

Electric fans can be safely used in indoor temperatures up to:
- 39°C for young, healthy adults.
- 38°C for older adults.
- 37°C for older adults taking anticholinergic medications (which can impair sweating).
Above these indoor temperatures, fans could worsen heat strain by increasing cardiovascular strain and core body temperature. In such situations, alternative cooling strategies such as wetting the skin, moving to a cooler place, or turning the aircon on are essential.

Below these thresholds, we have proven, in laboratory studies, that there’s no reason to switch fans off, because they provide further thermal comfort and reduce heat stress.

Climate change means many people are experiencing hotter summers.
Zhuravlev Andrey, Shutterstock

Take action now

Based on our field and lab research, we suggest five simple steps to using fans for managing heat at home:
1. consider buying pedestal or ceiling fans
2. point the fan at your body and adjust the speed to your liking
3. wear light clothing and stay hydrated
4. if you have aircon, increase the set-point to 27-28°C
5. enjoy a reduced energy bill and increased comfort.
You may also want to ask your employer to install fans at your workplace and share this “fan-first” cooling strategy with family and friends.

Let’s work together towards a more sustainable future by reducing our reliance on energy-intensive air conditioning. This will lead to lower electricity costs, reduced greenhouse gas emissions, and increased resilience to heat.

Federico Tartarini is affiliated with the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE).

Angie Bone is a Board Member of Doctors for the Environment Australia.

Ollie Jay receives funding from National Health and Medical Research Council (NHMRC) and Wellcome Trust (UK).

– ref. Tempted to turn on the aircon? Science says use fans until it’s 27°C – https://theconversation.com/tempted-to-turn-on-the-aircon-science-says-use-fans-until-its-27-c-252018
MIL OSI Analysis – EveningReport.nz –
April 29, 2025
MIL-OSI Global: Game change Canadian election: Mark Carney projected to lead Liberals to their fourth consecutive win

Source: The Conversation – Canada – By Fiona MacDonald, Associate Professor, Political Science, University of Northern British Columbia

Canada’s 2025 federal election will be remembered as a game-changer. Liberal Leader Mark Carney is projected to have pulled off a dramatic reversal of political fortunes after convincing voters he was the best candidate to fight annexation threats from United States President Donald Trump.

Only four months ago, Conservative Leader Pierre Poilievre had a 25-point lead in public opinion polls and a fairly secure path to victory.

Yet Poilievre’s lead soon vanished due to shifting voter sentiments defined less by the official campaign period and more by the months that preceded it. Justin Trudeau’s early January resignation announcement and Carney’s confirmation that he was officially in the Liberal leadership race dramatically changed the political landscape.

Read more:
After stunning comeback, centre-left Liberals likely to win majority of seats at Canadian election

Within a matter of weeks, Liberal support surged when Carney became party leader and Trump continued to make threats about Canada becoming a 51st American state — and to levy punishing on-again, off-again tariffs against the country.

The party went from being 20 percentage points behind the Conservatives to overtaking them, putting the party on track to secure its fourth consecutive victory. A shift described by longtime pollster Frank Graves as “unprecedented.”

Poilievre’s messaging

The emerging “Canada strong” and “elbows up” narratives, linked to the widespread anti-Trump sentiment, proved a major advantage for the Liberals, who made the most out of this political gift.

This shift, alongside Carney’s elimination of the carbon tax, left Poilievre on the back foot as his longstanding messaging on Trudeau and his “axe the tax” slogan became largely irrelevant.

Read more:
Who really killed Canada’s carbon tax? Friends and foes alike

The impact of these shifts in electoral fortunes extended beyond the two main parties. As the election became increasingly a two-party race between the Liberals and Conservatives, the smaller parties struggled for relevance.

Election campaign polling and early results indicated steep losses for the NDP, with Leader Jagmeet Singh’s own seat in Burnaby, B.C., under threat. This could be due to voters on the left responding to calls to vote strategically to prevent Conservative victories in various ridings.

The Bloc Québecois also lost ground, as did the Green Party of Canada and the People’s Party of Canada (PPC). Neither the Greens nor the PPC fielded full slates of candidates or participated in the leaders’ debates and therefore played comparatively limited roles in this election.

Advance voting in a gendered election

Another notable feature of this election was the record advance voting turnout, which surged to 7.3 million Canadians, up sharply from 5.8 million in 2021.

Early voting has now become a central part of party campaign strategy, with campaigns “getting out the vote” at every opportunity, not just on Election Day. This trend raises questions not only about whether overall turnout will rise, but also whether party platforms remain as influential given so many votes were cast before all parties released their platforms.

While many Canadians take in elections with a focus on party leaders and seat counts, there are other important ways to contemplate election outcomes in terms of inclusion and voice. What does this election tell us about gender and diversity representation in Canada’s Parliament?

This was a deeply gendered election. The major party leaders are all men, with the exception of Elizabeth May, the Green Party co-leader.

Preliminary candidate data showed a decrease in the number of women candidates compared to 2021.

The NDP nominated the highest proportion of women candidates — the majority of its candidates are women — and fielded the most diverse slate of candidates in terms of Indigenous people, Black people, racialized people and LGBTQ+ candidates. But the party’s dramatic losses mean these gains will not translate into more diverse representation in Parliament.

Furthermore, one of Carney’s first actions as prime minister was to eliminate the sex-balanced cabinet and to reduce the size of the cabinet. He eliminated the Ministry of Women and Gender Equality (WAGE) as well as ministerial portfolios focused on youth, official languages, diversity, inclusion, disability and seniors.

These decisions reverse previous efforts taken to institutionalize gender and diversity leadership in Canada’s Parliament.

Party platforms also reflected diverging approaches when it came to women. The Conservative platform only mentioned women four times, and three of those mentions were in the context of opposition to transgender rights.

Read more:
Pierre Poilievre’s ‘More Boots, Less Suits’ election strategy held little appeal to women

The role of young working-class men

Polling also revealed intersections of generation, gender and class are increasingly relevant. Like the last federal election, young working-class men are increasingly drawn to the Conservatives. This trend appears to be driven less by fiscal conservatism and more by concerns about rapid social change, a trend also observed in the 2024 American presidential election.

Many of these young men are expressing frustrations over housing affordability and job security, and what they view as the Liberal and NDP’s “woke culture,” which they view as eroding traditional values that have traditionally benefited men. In contrast, Canadian women of all ages continue to favour parties they view as more progressive — the Liberals and the NDP.

Theoretical explanations for this include young men feeling left behind by the Liberals, while the Conservatives have seemingly figured out a way to connect with them.

This may reflect campaign rhetoric about returning to traditional expectations and values around gender roles and men’s rights to well-paying jobs, an affordable home and taking care of their families.

Electoral reform needed?

In the aftermath of the election, there are avenues through which current gaps in representation can be addressed. Organizations like the United Nations’ Inter-parliamentary Union and the Commonwealth Parliamentary Association, as well as gender and politics scholarship, propose various reforms to continue to strengthen diversity in Parliament.

These reforms are understood to be essential for enhancing the legitimacy, responsiveness and effectiveness of Canada’s parliamentary system. Research on gender-and diversity-sensitive parliaments consistently shows that when legislative bodies reflect the diversity of the societies they govern, they are more likely to produce policies that are equitable, inclusive and trusted by the public.

Overall, this Canadian election was characterized by transformative twists and turns that shed more light on important ongoing questions about representation and the potential need for democratic reform if Canadians want to avoid a two-party system.

The authors do not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and have disclosed no relevant affiliations beyond their academic appointment.

– ref. Game change Canadian election: Mark Carney projected to lead Liberals to their fourth consecutive win – https://theconversation.com/game-change-canadian-election-mark-carney-projected-to-lead-liberals-to-their-fourth-consecutive-win-253721

MIL OSI – Global Reports –

April 29, 2025

MIL-OSI: eQ Plc’s interim report Q1 2025 – eQ’s operating profit EUR 5.8 million

Source: GlobeNewswire (MIL-OSI)

eQ Plc interim report
29 April 2025 at 8:00 AM

January to March 2025 in brief

During the period under review, the Group’s net revenue totalled EUR 14.0 million (EUR 16.5 million from 1 Jan. to 31 Dec. 2024). The Group’s net fee and commission income was EUR 14.5 million (EUR 16.0 million).

The Group’s operating profit fell by 34% to EUR 5.8 million (EUR 8.8 million).
The Group’s profit was EUR 4.6 million (EUR 7.0 million).
The consolidated earnings per share were EUR 0.11 (EUR 0.17).
The net revenue of the Asset Management segment decreased by 5% to EUR 14.4 million (EUR 15.1 million) and the operating profit by 11% to EUR 7.9 million (EUR 8.9 million). The management fees of the Asset Management segment fell by 4% to EUR 13.5 million (EUR 14.0 million) and the performance fees fell by 19% to EUR 1.1 million (EUR 1.4 million). During the review period, the assets managed by eQ Asset Management grew to EUR 13.6 billion (EUR 13.4 billion on 31 Dec. 2024).
The net revenue of the Corporate Finance segment was EUR 0.1 million (EUR 0.8 million) and the operating profit was EUR -0.8 million (EUR 0.1 million).
The operating profit of the Investments segment was EUR -0.6 million (EUR 0.2 million). Operating profit was negatively impacted by the value changes of residential property funds.
The net cash flow from the Group’s own private equity and real estate fund investment operations was EUR -0.8 million (EUR 0.1 million).

Key ratios	1-3/25	1-3/24	Change	1-12/24
Net revenue, Group, MEUR	14.0	16.5	-15 %	65.6
Net revenue, Asset Management, MEUR	14.4	15.1	-5 %	58.5
Net revenue, Corporate Finance, MEUR	0.1	0.8	-91 %	5.3
Net revenue, Investments, MEUR	-0.6	0.2	-374 %	1.1
Group administration and eliminations
Net revenue, MEUR	0.1	0.3		0.8

Operating profit, Group, MEUR	5.8	8.8	-34 %	34.5
Operating profit, Asset Management, MEUR	7.9	8.9	-11%	33.7
Operating profit, Corporate Finance, MEUR	-0.8	0.1	-1259%	1.5
Operating profit, Investments, MEUR	-0.6	0.2	-374 %	1.1
Operating profit, Group administration, MEUR	-0.6	-0.4		-1.8

Profit for the period, MEUR	4.6	7.0	-35 %	27.4

Key ratios	1-3/25	1-3/24	Change	1-12/24
Earnings per share, EUR	0.11	0.17	-36 %	0.66
Equity per share, EUR	1.23	1.25	-2 %	1.77
Cost/income ratio, Group, %	58.3	46.6	25 %	47.4

Liquid assets, MEUR	26.5	34.9	-24 %	17.0
Private equity and real estate fund investments, MEUR	17.2	16.7	3 %	17.0
Interest-bearing loans, MEUR	0.0	0.0	0 %	0.0

Assets under management excluding reporting services, EUR billion	10.2	10.2	0 %	10.4
Assets under management, EUR billion	13.6	13.3	2 %	13.4

Acting CEO Janne Larma

Global capital markets have been in turmoil in the early part of the year. In the first two months of the year, US stock markets remained at year-end levels, while stock prices in Europe rose by around 15%. In March, share prices fell in the US and remained flat in Europe. After the review period in April, share prices fell sharply in both Europe and the US following President Trump’s announcement of tariffs. The stock market slump eased briefly after President Trump announced a 90-day tariff freeze for several countries, excluding China.

The tariffs were published only after the end of the review period, so they had no impact on the market development during the review period. The tariff war and geopolitical challenges have a significant impact on capital markets and uncertainty is currently very high. Uncertainty is always a negative factor for investors and this tends to lead to less risk-taking and fewer new positions. The customs war and the associated uncertainty are having a negative impact on economic development worldwide, inc. Europe. Similarly, interest rates have fallen significantly, especially in Europe, with the ECB cutting its deposit rate to 2.25% in April. This has a positive impact on financing costs and yield requirements, which in turn supports both the real estate market and equity investments.

eQ’s operating profit EUR 5.8 million

The net revenue of the Group during the period under review was EUR 14.0 million and the operating profit was EUR 5.8 million. Net revenue fell by 15 per cent and operating profit by 34 per cent from the previous year. Both Advium and the Investments segment made a negative result, which had a significant impact on the decrease in profit.

eQ Asset Management’s operating profit EUR 7.9 million

During the period under review, the net revenue of the Asset Management segment fell by 5 per cent to EUR 14.4 million. The decrease in net revenue, EUR 0.8 million, is explained by real estate asset management’s lower management fees. Private Equity management fees increased from last year, and equity and fixed income fees remained at the previous year’s level. During the review period, eQ Asset Management’s operating profit fell by 11 per cent to EUR 7.9 million.

During the review period, we raised USD 143 million for our newest private equity fund, eQ PE XVII US. After the review period, in April we did another closing and the fund size rose to USD 168 million. We also signed new Private Equity programme fund agreements during the period. The challenging market situation is making fund raising difficult, but our strong and good track record allows us to fundraise this well. After the review period, we reorganised our residential funds. We established the eQ Residential III fund, to which we transferred two of our previous residential funds and raised EUR 37 million in subscriptions. We will continue fundraising for both the eQ PE XVII US and eQ Residential III funds.

For open-ended real estate funds, the market situation has not changed much since the beginning of the year. The fall in interest rates is certainly improving the operating conditions in the real estate market, but market activity is still low. Most of the postponed redemptions of the eQ Community Properties Fund from the end of last year will be paid by 30 April 2025. eQ Commercial Properties Fund does not yet have the liquidity to pay the redemptions at the moment.

Our aim is to serve our clients as well as possible, both in terms of returns and service. With this in mind, eQ Asset Management has reorganised itself at the beginning of the year. This has also included some recruitments and appointments to key positions. I strongly believe that our new organisation will enable better service and growth, as well as a more efficient and modern way of working.

Advium suffered from weak market situation

The number of mergers and acquisitions and real estate transactions in Finland was very low at the beginning of 2025. Advium did not complete any assignments in the review period. During the period under review, Advium’s net revenue totalled EUR 0.1 million (EUR 0.8 million). Operating profit was EUR -0.8 million (EUR 0.1 million).

Given the market situation, Advium’s order book is at a good level. However, the completion of transactions is largely dependent on the overall capital market situation and its development.

Investment’s profit fell

The operating profit of the Investments segment fell from last year and was EUR -0.6 million (EUR 0.2 million). The profit was negative due to value changes of the investments. Private equity funds rose in value in the first quarter of the year, but residential funds fell. The balance sheet value of equity and real estate fund investments at the end of the reporting period was EUR 17.2 million (EUR 17.0 million at 31 December 2024). During the review period, eQ Plc made an investment commitment of USD 1 million to the eQ PE XVII US and EUR 1 million to the Residential III funds. Net cash flow during the period was EUR -0.8 million (EUR 0.1 million).

Outlook (unchanged)

The difficult market situation in the Finnish real estate market continued in 2024. Our assessment is that the real estate market levelled off towards the end of the year and that yield requirements generally stopped rising in the final quarter of the year. However, market liquidity remained at a very low level. The real estate market in general remains challenging. In several Finnish open-ended real estate funds, redemptions have not been completed on time and investors have had to wait for their money. Funds for redemption payments are mainly raised by selling properties and, as the transaction market remains quiet, redemption payments have had to be postponed. Lower interest rates and economic growth are having a positive impact on the real estate market. The market expects interest rates in Europe to continue to fall and the economy to gradually start to recover. If these estimates materialise, we expect 2025 to be a better year for the real estate market than 2024.

Due to the current situation, eQ’s real estate fund management fees are expected to decrease in 2025 compared to the previous year.

Sales of eQ’s Private Equity products has continued to be strong, and we believe that Finnish asset management clients will increase the Private Equity allocations in their portfolios in the coming years. We estimate that eQ’s Private Equity fees will increase in 2025 compared to last year. The exit market for private equity funds was quieter than expected in 2024. As a result, the timing of Private Equity performance fees accruing to eQ has moved forward. Performance fees are expected to increase starting from 2026, with a number of private equity products expected to move into the performance fee phase.

In traditional asset management, we believe we have a good market position. The development of fees is largely dependent on market development.

***

eQ’s interim report 1 January to 31 March 2025 is enclosed to this release and it is also available on the company website at www.eQ.fi.

eQ Plc

Additional information:
Janne Larma, acting CEO, tel. +358 9 6817 8920
Antti Lyytikäinen, CFO, tel. +358 9 6817 8741

Distribution: Nasdaq Helsinki, www.eQ.fi, media

eQ is a Finnish group that concentrates on asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the Group total approximately EUR 13.6 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets. The parent company eQ Plc’s shares are listed on Nasdaq Helsinki. More information about the Group is available on our website www.eQ.fi.

Attachment

eQ Plc interim report Q1 2025

The MIL Network –

April 29, 2025

MIL-OSI Australia: New Home Energy Empowerment Program aims to help local residents
Source: New South Wales Ministerial News

The City in collaboration with the Central Victoria Greenhouse Alliance (CVGA) and Bendigo Sustainability Group have developed a Home Energy Empowerment Program to help local homeowners and renters to improve the energy efficiency of their homes.

City of Greater Bendigo Climate Change and Environment Manager Michelle Wyatt said the Home Energy Empowerment Program has been developed to support local households to improve the comfort and energy efficiency of their home, plan for the short and long term, and save on their energy bills.

“Everyone is feeling the impact of rising energy costs and the City and our partners want to empower residents with the information they need to know to make their homes energy efficient and to ultimately save money,” Ms Wyatt said.

The program is free and will commence on Sunday May 4, 2025 with an in-person home energy efficiency planning session at the Old Church on the Hill 36 Russell Street, Quarry Hill from 10.30am to 12pm.

It will then continue through to October with fortnightly short webinars on:
- Energy Efficiency for renters
- Draught proofing
- Efficient heating and cooling
- Insulation
- Hot water heat pumps
- Solar panels
- Windows and blinds for comfort and efficiency
- Electric vehicles and e-bikes
To register, visit:

MIL OSI News –
April 29, 2025
MIL-Evening Report: The government plans to regulate carbon capture technologies – but who will be the regulating agency?

Source: The Conversation (Au and NZ) – By Barry Barton, Professor of Law, University of Waikato

The Icelandic company Carbfix has developed a technology to store carbon dioxide. Shutterstock/Oksana Bali

Newly released documents add more detail to the government’s plans for a regulatory framework to enable carbon capture and storage.

But they show indecision on two key matters – the legal framework and the agency that would be in charge.

The plan relates primarily to conventional carbon capture and storage technologies, which remove carbon dioxide from an industrial gas flow and dispose of it deep underground.

It also covers some methods of carbon dioxide removal, an emerging but as yet commercially untested suite of technologies such as enhanced rock weathering, bio-energy capture and direct air capture.

The latter technologies are not predicated on fossil fuel consumption and could operate in many different situations.

Neither kind of carbon removal is a simple answer to the climate challenge and the priority remains on cutting emissions. But we need to have regulatory frameworks in place for both reduction and removal technologies of all kinds, and soon.

Earning credits from emissions trading

Both types of technologies will benefit from the government’s decision to allow companies to get credits in the New Zealand Emissions Trading Scheme (ETS) for the disposal of carbon dioxide from any source. Credits will not be tied to any one technology, according to the released policy discussion documents.

It’s also a positive development that an operator can get credits as a separate removal activity, not merely as a reduction of an existing emissions liability (although official advice was initially against separate credits). This allows for diversity in the players and the systems for removals.

The government has decided it will assume liability for any carbon dioxide leaks from geological storage, but only after verification that fluids in the subsurface are behaving as expected after closure, and no sooner than 15 years after closure.

Leaks this long after injection are unlikely, but we nevertheless need strong regulation, financial assurance to guarantee remedial action and clear liability rules.

Companies will be able to earn credits for the permanent disposal of carbon dioxide.
Shutterstock/VectorMine

The government also states ETS credits will only be available for removals that can be recognised internationally against New Zealand’s commitments to cut emissions. This would apply only to geological storage but not deep-ocean deposition or rock weathering.

But that’s not quite right. The general international rules already allow the inclusion in a national greenhouse gas inventory of removals from any process. Detailed methodologies for carbon dioxide removal are likely to become available within the next few years.

With change underway, New Zealand’s new regime should allow a wide range of removal methods to receive credits.

A new regulatory regime

The documents acknowledge that New Zealand needs a broader regulatory regime, beyond the ETS, to cover the entire process of carbon dioxide removal. The suitability of a disposal site must be verified, a detailed geological characterisation is required and the project design and operation need to be approved.

Approval is also required for closure and post-closure plans, and systematic monitoring. Monitoring is everything; it must be accurate and verifiable but also cost effective. The operator will have to pay for monitoring for decades after site closure.

In agreeing on these features, the government is following the examples of many countries overseas, including Australia, Canada, the UK and the EU.

However, it is intriguing that the government hasn’t decided where this new regime should sit in the statute book, and who should manage it. Much of the apparently relevant text in the documents has been redacted.

Given that carbon dioxide would be stored underground, the Crown Minerals Act is one possibility. But this legislation is all about extraction, not disposal. Although the New Zealand petroleum and minerals unit at the Ministry for Business, Innovation and Employment has expertise in regulating subsurface operations, it focuses largely on oil and gas, not on innovative climate projects.

The Resource Management Act certainly provides a regulatory approval regime, but it is awaiting reform and would need much more than the currently proposed changes to deal with carbon capture and storage or removal properly. So would legislation covering activities within New Zealand’s exclusive economic zone.

Indeed each act would require a whole new part to be added, with its own principles and procedures. There is a lot to be said for a standalone new act, in a form that would fit with the emerging Natural Environment Act that will replace the Resource Management Act.

The new legislation and regulation regime could be administered by the Environmental Protection Authority, which is already involved in Resource Management Act call-ins and fast-track approvals, the legislation covering the exclusive economic zone and the ETS.

One can only guess there might be tensions between contending factions in government. What we should ask for is a legislative and institutional arrangement that allows carbon capture and storage or removal technologies to evolve and grow without being a mere offshoot of the oil and gas industry or any other existing sector.

As part of our efforts to reduce emissions, we must make sure all kinds of removal technologies are available that truly suit New Zealand.

Barry Barton is part of the project “Derisking Carbon Dioxide Removal at Megatonne Scale in Aotearoa” which is funded by the MBIE’s Endeavour Fund. In the past, he has received funding from MBIE and the gas industry for research on CCS legal issues.
He is a director of the Environmental Defence Society.

– ref. The government plans to regulate carbon capture technologies – but who will be the regulating agency? – https://theconversation.com/the-government-plans-to-regulate-carbon-capture-technologies-but-who-will-be-the-regulating-agency-254696

MIL OSI Analysis – EveningReport.nz –

April 29, 2025

Category: housing

Components of the broad monetary aggregate M3

Chart 1

Counterparts of the broad monetary aggregate M3

Chart 2

Claims on euro area residents

Chart 3

Notes:

The emerging reality of fragmentation

Fragmentation of the real economy

Financial fragmentation

The looming consequences of fragmentation

Medium-term impacts

Long-term structural changes

The central bank’s role in a fragmented world

Conclusion

Four cyclones

Nation-wide impact:

The damage

1

Stakeholder mapping

Review of existing policies and regulations

Identification of vulnerabilities (Stress Testing)

Principles for resilient infrastructure

Development of an Implementation plan

The roadmap for infrastructure resilience in Madagascar is a key strategic document, as it outlines a comprehensive action plan aimed at minimising disaster risks in the country,” he adds.

Advancing Infrastructure Resilience in Madagascar

Developing the plan

“With this new way of looking by zooming out, we have more of an overall vision of everything that makes infrastructure vulnerable,” Randrianandrasana Lila Norolalaina, Head of Disaster Risk Reduction at the Ministry of Education, says.

Interdependencies of Functions and Cascading Effects

Energy

Stress-testing analysis, Energy

“When we know the state of all our assets, then we will be better able to ensure proper maintenance, keep track of the hotspots, and manage all the gaps.”

Transport

Stress-testing analysis, Transportation

5 airports

9 of 57

16,292 km

“Raising awareness about the importance of norms is an important moment,” Ventsolalaina Ramilison, Head of Disaster Risk Reduction Department at CPGU / Madagascar said. “Now there is just the question of creating and strengthening a monitoring authority.”

Lessons for other countries

“Given that donors tend to pay the costs of reconstruction following a disaster in Madagascar, they also benefit when Madagascar reduces the extent and cost of those disasters,” Ventsolalaina Ramilison, Head of Disaster Risk Reduction Department at CPGU / Madagascar says.

“When we can prevent storms from destroying our water supply infrastructure every year, then we can begin to build more sustainably,” she said. “That gives us hope, because we want to escape these endless cycles of recovery.”

Building energy resilience

Some 70%

Hydropower revenues

Offsetting Bhutan’s

February 2010

75% of the population

1

Stakeholder mapping

Review of existing policies and regulations

Identification of vulnerabilities (Stress Testing)

Principles for resilient infrastructure

Development of an Implementation plan

“With that in mind, we need to bring together a greater number of stakeholders to identify the vulnerabilities of our infrastructure systems and propose solutions. Without a doubt, we need to explore new solutions that involve more stakeholders in the system” she added.

Advancing Infrastructure Resilience in Chile

Early start

The process

Recognising drought

Prioritization of Threats in Chile

Protecting water

Next steps

1.

2.

Distribution of hazards in micro-zones over the period 2000-2023

3.

Tonga

85,000 people

1

Stakeholder mapping

Review of existing policies and regulations

Identification of vulnerabilities (Stress Testing)

Principles for resilient infrastructure

Development of an Implementation plan

“The infrastructure resilience review process is already helping us to do that,” he said.

Advancing Infrastructure Resilience in Tonga

The process

Stress-testing of Critical Infrastructure against Identified Hazard, Tonga

“By prioritising resilience, the country can support sustainable economic growth, adapt to climate change, and protect communities, while minimising economic and human losses.”

Water sector