5 Kinds of investments to be held
5.1 The Scheme is permitted to invest in a wide range of assets including equities, bonds, cash, property and alternative asset classes, such as target return funds, private equity, debt and infrastructure. The Scheme is also permitted to invest in derivatives including swaps and gilt repurchase agreements. 5.2 The Trustee monitors the employer-related investment content of the portfolio as a whole and will take steps to alter this should they discover this to be more than 5% of the portfolio. This check is carried out annually as part of the preparation and audit of the Scheme’s annual report and accounts .
6 The balance between different kinds of investments
6.1 The Scheme invests in assets that are expected, in combination, to achieve the Trustee’s objectives. The target allocation between different asset classes is recorded in the IIP .
6.2 The Trustee considers the merits of different styles of investment management for the various elements of the portfolio. The current investment management arrangements are set out in the IIP .
6.3 From time to time the Scheme may hold cash as a working balance or for tactical reasons, and deviate from its benchmark asset allocation in order to accommodate asset restructuring exercises, short-term cashflow requirements or other unexpected events.
6.4 The Trustee may also hold insurance policies such as deferred or immediate annuities that provide income to the Scheme, matching part of all of the liabilities due from it.
6.5 The Trustee is aware that the appropriate balance between different kinds of investments will vary over time. T he Scheme’s benchmark asset allocation is therefore expected to change as the liability profile m atures and/or as the Trustee’s funding and investment objectives are achieved.
UTC (UK) Pension Scheme | Statement of Investment Principles | 22 August 2023
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