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BCA investment policy - November 2016
As at financial year end, 30 September 2016, the value
of the accounts held with CCLA in their common investment fund was £27,385
(total money invested £20,000
between December 2011 and July 2013).
In the year to 30 September 2016:
The income units increased
in value by 12.67%, that is £1,434.80, and a total of £441.90 was paid in
The accumulation units
increased in value by 16.77%,that is £2,100.45.
For comparison, the FTSE
index increased by 8.46%
over the same time period.
Note: Money can be withdrawn from CCLA within a week
BCA’s investment policy had
been to avoid the risks of the stock market and not use investment
accounts, only deposit accounts for longer term funds.
However, in 2011 we
benefitted from a legacy that was an unexpected financial bonus. The BCA can afford to tie up this
windfall long term while benefitting from income generated from it and
gaining capital growth.
needed an account that met our obligations as stated by the charity
commission as follows.
The basic principle governing trustees'
decisions about investing the BCA's funds is that they must take a prudent
approach. When investing charitable
funds trustees must seek to strike the right balance for the BCA between
the two objectives of:
providing an income to help the BCA carry out
its purposes effectively in the short term; and
maintaining and, if possible, enhancing the value
of the invested funds, so as to enable the BCA effectively to carry out its
purposes in the longer term.
The BCA currently has a
professional fundraiser and member led fundraising activities along with
deposit accounts which provide income in the short term. A Common Investment Fund can provide more
certainty for income in the long term.
Secretary and Treasurer have investment powers delegated to them. When investing, these officers will look
for the flexibility to invest for growth, income or both. A recent law commission report (number 315) shows the advantages of a
multiple investment strategy.
investment would be planned to be for the medium to long term.
investment performance will be measured against FTSE 100. Where underperformance is seen over a
period of about 3 years then the officers will consider closing the
investment will be reviewed annually along with this policy.
Original policy drawn up in October 2010: reviewed
Signed and dated by 2 trustees on behalf of BCA