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

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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