Docusign Envelope ID: 7C50003C-051D-4E0C-907A-F452AD5C4EA2
UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2023
STATEMENT REGARDING DC GOVERNANCE
The SW Aquila 50/50 Global Equity Index CS1 Fund invests primarily in equities, both in the UK and overseas markets. The fund has approximately 50% invested in UK company shares. The remaining 50% is split equally between investments in US, Europe (excluding the UK) and Far East companies. The fund aims to provide returns consistent with the markets in which it invests and provides broad exposure to countries around the world. The SW Mercer Diversified Growth Fund is a mixed asset fund, the objective of which is to outperform cash by 3.5% over the long-term. This fund invests in assets which tend to produce higher levels of return but with higher risk.
Ten years from the selected retirement date a member’s fund is progressively switched into the SW BlackRock Sterling Liquidity CSW Fund in accordance with the following table:
Prior to Selected Retirement Age
SW Aquila 50/50 Global Equity Index CS1
SW Mercer Diversified Growth Fund CS1
SW BlackRock Sterling Liquidity CSW
%
%
%
More than 10 years
75 75 65 55 45 35 25 15
25 25 35 45 55 55 50 45 40 30 15
0 0 0 0 0
10 years 9 years 8 years 7 years 6 years 5 years 4 years 3 years 2 years 1 year
10 25 40 55 70 85
5 0 0 0
Less than 1 year
0
100
The SW BlackRock Sterling Liquidity CSW Fund is a money market fund, which aims to achieve an investment return in line with the Bank of England Sterling Overnight Index Average.
By investing in this manner, the Trustee expects to deliver growth over the member’s lifetime within the Scheme without excessive risk taking, and with an increased focus over the final ten years of reducing volatility to enable members approaching retirement to make financial plans for the period after retirement. The Trustee considers this approach to be in the best interests of relevant members and beneficiaries.
Processing scheme transactions
The Trustee has a specific duty to ensure that core financial transactions (including the transfer of member assets into and out of the Scheme, transfers between different investments within the Scheme and payments to and in respect of members) relating to money purchase benefits are processed promptly and accurately.
TACC Benefits
Transactions in respect of TACC Benefits are undertaken on the Trustee’s behalf by the administrator of the Goodrich Section of the Scheme, Mercer, and its investment manager Scottish Widows. The Trustee has reviewed the processes and controls implemented by those organisations and considers them to be suitably designed to achieve these objectives. The Trustee has also agreed service levels with Mercer & Scottish Widows, both in terms of timeliness and accuracy, and reporting of performance against those service levels. In addition, Mercer provides additional oversight of the services provided by Scottish Widows through monthly meetings and an annual review of their capabilities.
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