Docusign Envelope ID: 7C50003C-051D-4E0C-907A-F452AD5C4EA2
UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2023
NOTES TO THE FINANCIAL STATEMENTS
18 Fair value of investments
The fair value of financial instruments has been estimated using the following fair value hierarchy;
Level (1): The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the measurement date.
Level (2): Inputs (other than quoted prices included within level 1) that are observable for the asset or liability, either directly or indirectly.
Level (3): Inputs are unobservable, i.e. for which market data is unavailable for the asset or liability.
Pooled investment vehicles which are traded regularly are generally included in category (2). Where the absence of regular trading or the unsuitability of recent transaction prices as a proxy for fair value applies, valuation techniques are adopted, and the vehicles are included in category (3).
The Scheme’s investment assets and liabilities have been included at fair value within these categories as follows:
2023 Total
Level
(1)
(2)
(3)
1,172,762
Bonds
-
1,172,762
-
464,673
Pooled investment vehicles
-
335,519
129,154
2,679
Derivatives - net
517
5,524
(3,362)
220,000
Asset Backed Funding
-
-
220,000
23,855
AVC investments
-
23,086
769
720
Insurance policies
-
-
720
971
Cash
971
-
-
6,871
Other net investment balances
6,871
-
-
(312,247)
Repurchase agreements
-
(312,247)
-
Total
1,580,284
8,359
1,224,644
347,281
Analysis for the prior year end is as follows:
2022 Total
(1)
(2)
(3)
Level
Bonds
-
1,145,443
-
1,145,443
Pooled investment vehicles
-
366,316
116,554
482,870
Derivatives - net
2,187
9,259
(13,121)
(1,675)
Asset Backed Funding
-
-
212,600
212,600
AVC investments
-
22,218
975
23,193
Insurance policies
-
-
1,012
1,012
Cash
2,951
730
-
3,681
Other net investment balances
7,657
-
-
7,657
Repurchase agreements
-
(311,399)
-
(311,399)
Total
12,795
1,232,567
318,020
1,563,382
41
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