UNITED TECHNOLOGIES CORPORATION (UK) PENSION SCHEME YEAR ENDED 31 DECEMBER 2024
NOTES TO THE FINANCIAL STATEMENTS
Investment strategy
The investment strategy of the Scheme is set out in the latest Statement of investment Principles (SIP), dated 22 August 2023 Investment Implementation Policy (IIP), dated 13 November 2024. investment objectives and consequent strategy resulting from the Asset Backed Funding investments.
Benchmark Allocation (%)
Allowed Deviation (%)
Asset class
Equities
8.0 6.0
+/-2.0 +/-2.0 +/-3.0 +/-3.0 +/-5.0
Target Return Secure Income
14.0 33.5 37.5
Buy and Maintain Corporate Bonds
Liability Driven Investment
Cash
1.0
Balancing item
Total
100.0
At the year end, the holdings in Equities, Secure Income assets and Liability Driven Investments are outside the deviation allowed for within the IIP. This position has mainly arisen due to the holding of illiquid assets and market movements outside the control of the CIF Administrator.
CIF financial statements which are
appended to these financial statements.
The following table summarises the extent to which the various classes of investments are affected by financial risks:
Market currency risk
Market interest rate risk
Market other price risk
2024 Value
2023 Value
Credit risk
Bonds
1,044,127
1,172,762
3
2
3
1
Pooled investment vehicles;
430,551
464,673
Direct
3
1
1
1
Indirect
2
2
3
3
Derivatives - net
1,277
2,679
2
2
2
2
Asset Backed Funding
206,600 24,406
220,000 23,855
3
1
3
1
AVC investments Insurance policies
3
1
1
3
770
720 971
3
1
3
3
Cash
2,895
3
2
2
1
Other net investment balances
5,097
6,871
3
2
1
1
Repurchase agreements
(275,746)
(312,247)
2
1
3
1
Total
1,439,977
1,580,284
45
Made with FlippingBook Publishing Software