THE UTC COMMON INVESTMENT FUND
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024
Investment transaction costs
Direct transaction costs incurred in the year amounted to £4k (2023: £4k) and are comprised wholly of commissions.
In addition to the direct transaction costs, indirect costs are incurred through the bid-offer spread on pooled investment vehicles and charges made within those vehicles. It is not possible to quantify the level of indirect transaction costs.
6 Pooled investment vehicles
2024
2023
127,897 23,536 38,400 218,263
129,424 32,204 39,015 214,649
Equities
Diversified growth Absolute return Secure income
-
7,096
Property
22,455
42,285
Cash
430,551
464,673
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Derivatives
2023 Total
2024 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 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.
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