Docusign Envelope ID: 7C07248F-983B-4F8B-904D-FCB9B680B5CE
THE UTC COMMON INVESTMENT FUND
ADMINISTRATOR’S REPORT YEAR ENDED 31 DECEMBER 2023
Introduction The UTC Common Investment Fund (the ‘CIF’) was established on 6 April 1983. UTC Pension Trust Limited (‘the Administrator’) administers the CIF on beh alf of the Participating Scheme (UTC (UK) PS). The CIF operates in accordance with Agreements with the Participating Scheme. Under these Agreements the Investment Administrator shall produce audited financial statements for the CIF, at such times and at such intervals as it shall decide. The CIF trustee (UTC Pension Trust Limited) is a bare trustee. This means that it holds the assets in the CIF at the direction of the trustee of the UTC (UK) PS. The Administrator has no discretionary power of its own. However, the UTC (UK) PS trustee delegates its investment powers to the CIF trustee and the CIF trustee uses those when instructing the asset managers. The Articles of Association of the Administrator contain provisions for the appointment and removal of directors and the board ordinarily comprises of six directors. To assist in the efficient management of the CIF and to enable more timely decisions to be made, the Administrator has established an Investment Sub-Committee (ISC). Members of the ISC are drawn from the Directors of UTC Pension Trust Limited. Additionally, the ISC may make additional appointments to assist them in their duties. This sub-committee of the directors usually meets four times a year. The ISC operates within parameters set by the Administrator and in accordance with the Statements of Investment Principles of the Participating Scheme. Participating Scheme During the year ended 31 December 2023, the UTC (UK) PS was the only scheme that participated in the CIF. This has been the case since February 2020. CIF indemnity and insurance The Administrator is indemnified by the Participating Scheme in respect of liabilities incurred as a result of their office. This is further supported by a letter of indemnity provided by RTX Corporation (previously known as Raytheon Technologies Corporation) to each director of UTC Pension Trust Limited in respect of those liabilities for which the Administrator may not be indemnified. The indemnity will not provide cover in the event that the Administrator is proven to have acted dishonestly or fraudulently. Financial development of the CIF The financial statements have been prepared and audited in compliance with regulations made under section 41 (1) and (6) of the Pensions Act 1995.
Significant developments affecting the financial position of the CIF during the year include:
The overall CIF value increased by £9.1m from £1,326.6m as at 31 December 2022 to £1,335.7m as at 31 December 2023.
The increase in the CIF value comprised the following; o £64.5m return on investments. o
£55.4m withdrawals by the Participating Scheme for ordinary cashflow purposes.
Custodians The Administrator is responsible for appointing and replacing Custodians.
With effect from November 2009, the Administrator appointed BNY Mellon Asset Servicing BV, the London branch of Bank of New York Mellon European Bank as overall Custodian and as Custodian of the CIF’s segregated investments. In July 2018, this relationship was formally transferred by Bank of New York Mellon to the London branch of Bank of New York Mellon US Bank (‘BoNYM’). BoNYM provide oversight accounting and reporting on all of the assets managed under the CIF.
The use of separate Custodians helps to further minimise the risk to safe custody of assets within the CIF.
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