UTC (UK) Pension Scheme - Annual Report & Chair's Statement

UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2024

NOTES TO THE FINANCIAL STATEMENTS

11 Pooled investment vehicles

2024

2023

Equities

127,897 23,536 38,400 218,263

129,424 32,204 39,015 214,649

Diversified growth Absolute return Secure income

Property

-

7,096

Cash

22,455

42,285

430,551

464,673

12 Derivatives

2024 Total

2023 Total

Assets

Liabilities

Assets Liabilities

Exchange traded Futures

418

(411)

7

873

(356)

517

Over-the-counter contracts Forward foreign currency

498

(6,072) (8,128)

(5,574)

5,532

(8)

5,524

Swaps

14,972

6,844

16,028

(19,390)

(3,362)

15,888

(14,611)

1,277

22,433

(19,754)

2,679

Objectives and policies for holding derivatives

The CIF Administrator has authorised the use of derivative financial instruments by the investment managers as part of their investment strategy as follows;

Futures and swaps: Interest rate swaps and bond and interest rate futures may be used by bond managers for the purposes of implementing duration, country allocation, yield curve and investment views. Forward foreign currency: FX may be used for currency hedging purposes, but not for speculative purposes.

Futures contracts Type of future

Expires within

Nominal value

Fair value Assets

Fair value Liability

UK exchange traded

< 1 year < 1 year

214

-

(411)

Overseas exchange traded

(185)

418

-

418

(411)

Included within the cash deposits and other net investment assets is an asset of £1,401k (2023: £1,329k) in respect of initial and variation margins arising from open futures contracts at the year end.

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