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

THE UTC COMMON INVESTMENT FUND

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024

8 Cash and other investment balances

2024

2023

Cash

Cash - sterling

1,766 1,129

463 508

Cash foreign currency

Total cash

2,895

971

Other investment balances

Accrued investment income

9,374

11,895 (5,024)

Interest payable on repurchase agreements

(4,277)

Net other investment balances

5,097

6,871

Cash balances include collateral amounts of £1,340k (2023: £nil).

9 Repurchase agreements

2024

2023

Amounts payable under repurchase agreements

(275,746)

(312,247)

Bonds with a fair value of at the year end of £261,703 (2023: £337,780) 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 £20,522k (2023: £21,711k) had been provided as additional collateral for the same repurchase contracts. There were 8 (2023: 10) repurchase agreements at the year-end with maturity between January and June 2025.

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).

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