Northern Ireland Central Investment fund for Charities

Many Northern Ireland charities are finding that the buying power of the income they receive from investments has fallen steadily over the years. Although trustees are now given wider powers to invest, some charities have insufficient capital to allow them to maintain their income while others don’t want to become involved in investment problems.

This is where the Northern Ireland Central Investment fund for Charities can help. The Fund aims to give trustees the opportunity to invest all or part of their assets with the benefit of expert supervision. It is managed by the Department for Social Development through recognised fund managers, but its investment policy is guided by an Advisory Committee, which meets in February, May, September and November each year.

The Fund operates much as a Unit Trust. Participating charities pool their resources and are given a proportionate number of shares in the Fund based on the most recent valuation.

The Fund invests in fixed-interest securities and selected ordinary shares. The allocation between fixed-interest securities and shares is altered from time to time to meet changing circumstances. The current allocation is 25% bonds and 70% equities with the remaining 5% held as cash.

Aim.  The aim of the Fund is to maintain and increase the real value of the income and capital of the Fund, with the emphasis on a growing income.

Eligibility.  Any Northern Ireland charitable organisation may invest in the Fund, provided it is based in Northern Ireland and recognised as a charity by the Inland Revenue.

Benefit.  Investment in the Fund should be viewed as long-term to achieve maximum benefit from capital growth.  Benefit is also derived from dividend payments which are paid bi-annually.

Risk Factors.  The price of shares can go down as well as up, as can the income.

Contributions.  Accepted at any time and earn interest from the date of receipt. Shares are allocated immediately after the next monthly valuation following receipt. There is no minimum contribution.

Withdrawals.  Normally processed on receipt, at the last monthly valuation. The fund reserves the right however to use the next monthly valuation e.g. in a volatile market.

Valuation.  Completed as soon as possible after the last working day in each month.

Dividends.  Paid bi-annually on 1st June and 1st December. No tax is deducted from dividends.  Dividend paid at 1^st June 2009 was 21p per share and the dividend paid on 1^st December 2009 was 18p per share.

Capital Gains Tax.  Does not apply to charities.

Tax.  Claims are dealt with by the Department.

Fund Manager. The Fund is managed by Newton Investment Management Ltd (a Mellon Financial Company) of Queen Victoria Street, London.  Newton Investment Management Ltd are authorised and regulated by the Financial Services Authority.

Performance.  The shares were first issued in 1965 at £1 each.  Share prices and yields over the last six years have been as follows:

For further information, please contact the Resource Budgeting & Accounting Unit.