EC Meeting Papers July 2018

General Federation of Trade Unions Pension Scheme

Notes to the Financial Statements

Year Ended 31 December 2017

6

Transfers to other Plans

GFTU

PCS

2017

2016

£

£

£

£

Individual transfers out to other plans

-

-

-

619.099

-

-

-

619,099

The transfer of £619,099 is from the ITGLWF section to the PPF for the winding up of the ITGLWF section. The transfer of assets to a value of £170,200 from the ITGLWF section to the GFTU section in September 2015 in return of the orphan liabilities of the ITGLWF section. The execution of the transfer was completed by all the parties on 8 July 2017.

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Reconciliation of investments

2017 £

2016 £

4,514,852 2,803,198 4,911,804 3,966,963 397,993 3,922,628

Over 5 year Index Linked Gilts Index Fund Investment Grade CP Bonds All Stocks

Global Equity 70:30 Index

407,744

-

GPBF All World Equity Hedged

774,091

-

MAAC Dynamic Diversified

11,006,484 10,692,789

Value at 1 Jan 2017

Net withdrawals

Intersection payments

Change in market value

Value at 31 Dec 2017

£

£

£

£

£

6,911,866 (211,640)

-

415,918 7,116,144

GFTU

3,780,923

(113,360)

-

222,777 3,890,340

PCS

10,692,789 (325,000)

-

638,695 11,006,484

The intersection adjustment represents temporary cash funding between the three sections which has taken place to avoid unnecessary disinvestment of assets to meet ongoing member benefit payments.

The changes in market value of investments during the year comprises all increases and decreases in the market value of investments held during the year, including profits and losses realised on the sale of investments during the year.

Transaction costs are included in the cost of purchases and deducted from sales proceeds. Direct transaction costs include costs charged to the Scheme such as fees, commissions and stamp duty.

There were no transaction costs during the year (2016 - £nil).

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