Arnold Pindar - Chairman

Chairman’s Report – For the year ending 31 March 2024

Governance & Oversight

Our Board of Trustees remains committed to prudent governance, ensuring that plan-holder funds are diligently managed and allocated to meet all future obligations.

Economic Context: Stock Market & UK Cost of Living

• UK equities delivered modest but positive returns in 2024. The FTSE 100 rose roughly 5–6%, supported by renewed M&A activity and improved earnings forecasts, although rising taxes and macro uncertainty tempered gains toward year-end.
• Cost of living in the UK continued to weigh heavily. While inflation eased from its 2022 peak, it remained stubbornly above target, particularly in essentials like food, energy, housing, and utilities—resulting in households facing renewed pressure, especially in 2024 and early 2025.

Funeral Price Inflation: 2024 Highlights

Funeral costs in the UK reached fresh highs last year:

• The average price of a simple attended funeral rose to approximately £4,285, marking a 3.5% increase on 2023, according to SunLife’s Cost of Dying Report—the highest-ever level
• Burials averaged £5,198 (+2.4%), cremations £3,980 (+4.9%), and direct cremations £1,597 (+6.7%)
• The total cost of dying—covering funeral services, professional probate fees, and post-funeral expenses like catering and flowers—also hit a record £9,797, climbing 1.4% on the previous year
• Regional disparities remain notable, with London topping the chart at £5,449, while Northern Ireland remains the most affordable at £3,441

Investment Strategy & Performance

Our diversified investment approach has provided resilience through market volatility. The portfolio has continued to deliver returns that meet our long-term obligations, and the Trust remains fully funded (123%) to meet all funeral plan promises.

Why Funeral Plans Are a Strong Hedge

With funeral costs climbing swiftly and consistently:

• Securing today’s pricing locks in a known future cost, removing exposure to rising prices.
• It provides financial certainty and relieves families of stress during a period of bereavement.
• Funeral plans act as a form of inflation protection, especially valuable when funeral costs are rising faster than general household inflation.

Outlook for 2024–25

• Inflation is forecasted to hover around 3–4%, keeping cost pressures intact, particularly in services and utilities.
• Interest rates remain elevated; future cuts may come slowly amid cautious economic policy.
• Global equity indices are expected to exhibit steady but unspectacular growth, dependent on both domestic corporate performance and broader macroeconomic stability.

Despite these challenges, the Golden Leaves Trust remains confidently positioned to safeguard its liabilities and maintain stability for our beneficiaries.

Arnold Pindar

Chair

Golden Leaves Trust

December 2024