THE UTC COMMON INVESTMENT FUND
NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 DECEMBER 2024
The Administrator determines which assets to hold within the CIF after taking advice from a professional investment adviser. The Participating Scheme indicates to the Administrator what the allocation of assets between the different investments should be (having taken professional advice) and the Administrator implements the selected strategy on their behalf. The CIF has exposure to the above risks because of the investments it makes in following the investment strategy set out below. The Administrator manages investment risks, including credit risk and market risk, within agreed risk
objectives and risk limits are implemented through the investment management agreements in place
investment portfolio.
set out below.
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 2024.
UTC (UK) PS
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 Statement of Investment Principles. This position has mainly arisen due to the holding of illiquid assets and market movements outside the control of the Administrator.
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