Docusign Envelope ID: 7C07248F-983B-4F8B-904D-FCB9B680B5CE
THE UTC COMMON INVESTMENT FUND
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2023
Investment strategy
The CIF Administrator has stated the following objectives for the investment of the assets held in the CIF:
To provide the participating scheme trustee access to asset classes that meet its needs in terms of risk management, return generation income production and liquidity. To implement investments using appropriately diversified approaches, to avoid unnecessary exposure to concentration risk. To provide good value for money in terms of outcome versus charges and costs, allowing for the nature and objectives of the investment approaches used. The Statement of Investment Principles for the Participating Scheme sets out the principles underlying the arrangements of the Participating Scheme. The table below sets out the strategy of UTC (UK) PS, the only Participating Scheme as at 31 December 2023.
UTC (UK) PS
Benchmark Allocation (%)
Allowed Deviation (%)
Asset class
Equities
8.0
+/-2.0
Target Return
6.0
+/-2.0
Secure Income
14.0
+/-3.0
Buy and Maintain Corporate Bonds
33.5
+/-3.0
Liability Driven Investment
37.5
+/-5.0
Cash
1.0
Balancing item
Total
100.0
Credit risk
The CIF is subject to credit risk because it directly invests in bonds, derivatives, has cash balances, enters into repurchase agreements and holds units in pooled investment vehicles (PIVs). The CIF has indirect exposure to credit risks from the underlying investments held by the pooled investment vehicles.
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