Docusign Envelope ID: 7C07248F-983B-4F8B-904D-FCB9B680B5CE
THE UTC COMMON INVESTMENT FUND
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023
Interest payable on repurchase agreements is accounted for in the period it falls due.
The change in market value of investments during the year comprises all increases and decreases in the market value of investments held at any time during the year, including profits and losses realised on sales of investments and unrealised changes in market value. In the case of pooled investment vehicles which are accumulation funds, where income is reinvested within the fund without issue of further units, change in market value of investments also includes such income. Transaction costs are included in the cost of purchases and sale proceeds. Transaction costs include costs charged directly to the CIF such as fees, commissions, stamp duty and other fees. Other investment management expenses are accounted for on an accruals basis. Valuation and classification of investments Investment assets and liabilities are included in the financial statements at fair value. Where separate bid and offer prices only are available, the bid price is used for investment assets and the offer price for investment liabilities. Otherwise, the closing single price, dealing price or most recent transaction price is used.
Where quoted or other unit prices are not available, the Administrator adopts valuation techniques appropriate to the class of investment.
The methods of determining fair value for the principal classes of investments are:
Bonds which are traded on an active market are included at the quoted price, which is normally the bid price. Unitised pooled investment vehicles which are not traded on an active market but where the manager is able to demonstrate that they are priced daily, weekly or at each month end, and are actually traded on substantially all pricing days are included at the last price provided by the manager at or before the year end. Secure income pooled investment funds that are valued quarterly and where new investments are only unitised on the first business day of the following quarter are valued using the manager valuation at the quarter end plus the cash value of un-unitised purchases. Exchange traded futures are valued at the difference between exchange settlement prices and inception prices. Forward exchange contracts are valued at the gain or loss that would arise from closing out the contract at the reporting date by entering into an equal and opposite contract at that date. Swaps are valued at the net present value of future cash flows arising therefrom. Accrued interest is excluded from the market value of bonds but is included in investment income receivable. The CIF continues to recognise assets that are delivered out under repurchase contracts and includes them in the financial statements. The cash received is recognised as an asset and the obligation to pay it back is recognised as a payable amount. Pending trade settlements are included in other net investment balances.
Expenses All invoiced expenses are paid by the Participating Scheme.
Critical accounting judgements and estimation uncertainty Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The Administrator makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. For the CIF, the Administrator believes the only estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are
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