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

Docusign Envelope ID: 7C07248F-983B-4F8B-904D-FCB9B680B5CE

THE UTC COMMON INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023

9 Repurchase agreements

2023

2022

(312,247)

Amounts payable under repurchase agreements

(311,399)

Bonds with a fair value of at the year end of £337,780 (2022: £265,350k) had been sold subject to repurchase contracts and therefore continued to be recognised in the financial statements. In addition bonds with a fair value at the year end of £21,711k (2022: £51,095k) had been provided as additional collateral for the same repurchase contracts. There were 10 (2022: 9) repurchase agreements at the year-end with maturity between January and May 2024.

10 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 level (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 level (3).

The CIF’s investment assets and liabilities have been included at fair value within these levels as follows:

2023 Total

(1)

(2)

(3)

Level

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)

971

Cash deposits

971

-

-

6,871

Other net investment balances

6,871

-

-

(312,247)

Repurchase agreements

-

(312,247)

-

Total

1,335,709

8,359

1,201,558

125,792

17

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