UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2024
STATEMENT REGARDING DC GOVERNANCE
TACC Benefits
The Trustee makes available a range of seven investment funds which may be chosen by members as an alternative to the Lifestyle Investment Option. These funds allow members to take a more tailored approach to managing their own pension investments. Three comprise the Lifestyle Investment Option. These funds attract annual investment management charges as shown in the table below.
Investment Strategy/Fund
Expense ratio
Transaction Costs Incurred During Scheme Year 0.014% - 0.130%
Average Transaction Costs*
Lifestyle Investment Option
0.307% - 0.341%
0.014% - 0.128%
SW Mercer Diversified Growth CS1 SW Threadneedle Pension Property CS1 SW BlackRock 50/50 Global Equity Index CS1 SW BlackRock World ex UK Equity Index CS1
0.420%
0.187%
0.207%
0.900%
-0.047%
0.053%
0.243%
0.061%
0.032%
0.235%
0.020%
-0.009%
SW BlackRock Sterling Liquidity CSW
0.250%
0.014%
0.014%
SW BlackRock Over 15 Years UK Gilt Index CSW SW BlackRock UK Equity Index CSW
0.244%
0.000%
-0.003%
0.243%
0.049%
0.051%
* Covering a five-year period as per statutory guidance. In certain circumstances the methodology used for calculating transaction costs (known as slippage) can lead to negative costs being reported. This can be, for example, where other market activity pushes the price of the asset being traded down, whilst the transaction was in progress, resulting in the asset being purchased for a lower price than when the trade was initiated.
Illustrative examples of the cumulative effect over time of the application of charges, based on the assumptions detailed therein, are provided under the heading
Other AVC policies
There are five other AVC providers in addition to Scottish Widows mentioned above. The two other main providers are Legal and General and Standard Life. These providers cover the vast majority of members and assets. The three other AVC providers, Prudential, Phoenix Life and Aviva, were unable to provide the necessary information on member-borne cost and charges and subsequently we only report on those provided by Legal & General and Standard Life in this section The Trustee will work with Prudential, Phoenix Life and Aviva with a view to disclosing this information in the 2025 Scheme Year DC Governance Statement.
Legal and General
Investment Fund
Expense ratio
Transaction Costs Incurred During Scheme Year
Average Transaction Costs*
Global Equity 70:30 Index Over 15 years Gilts Index
0.219% 0.100% 0.263% 0.183% 0.100% 0.222% 0.125% 1.533%
0.024% 0.052% 0.029% 0.016% 0.051% 0.021% 0.068% -0.010%
0.024% 0.099% 0.032% 0.016% 0.114% 0.030% 0.033% -0.192%
Multi Asset
UK Equity Index
Over 5-year Index Linked Gilts World (ex UK) Equity Index
Cash
Managed Property
Global Equity Market Weights 30:70 GBP 75% Hedged
0.225%
0.047%
0.054%
20
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