Northern Ireland Central Investment Fund for Charities
Many charities in Northern Ireland have found that the buying power of the income they receive from investments has fallen steadily over recent years. Although Trustees are now given wider powers to invest, some charities have insufficient capital to allow them to maintain their income, while others wish to avoid the often complicated process of investing their funds to generate additional capital or income.
This is where the Northern Ireland Central Investment Fund for Charities can assist.
Established in 1965 through the Charities Act (Northern Ireland) 1964, the Fund aims to provide Trustees with the opportunity to invest all or part of their funds 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 a locally based Advisory Committee appointed by the Department, which meets in February, May, August and November each year.
The Fund operates as a discretionary managed fund. Participating charities pool their investments and are given a proportionate number of shares in the Fund based on the most recent valuation (share price).
The Fund invests in fixed-interest securities and selected equities. The allocation between fixed-interest securities and equities is reviewed and adjusted periodically, in line with the Fund’s investment policy. The asset allocation at 31 December 2010 was:
- 20.2% Fixed Interest
- 47.4% UK Equities
- 30.5% Overseas Equities
- 1.9% Cash
The Composite Benchmark is shown in the table below, along with the permitted ranges within which the Department and the Advisory Committee permit Newton Investment Management Limited (the Fund Manager) to operate.
Asset Class |
Composite Benchmark % |
Range % |
Benchmark Index Comparator |
|
|
|
|
|
Fixed Interest
|
25
|
15 - 35
|
FTA Government All-Stocks Index
|
UK Equities
|
50
|
35 – 65
|
FTSE All Share Index
|
Overseas Equities
|
20
|
15 – 35
|
FTSE World (ex UK) Index
|
Other/Cash
|
5
|
0 - 10
|
7 day cash
|
|
|
100
|
|
|
The Fund is managed by Newton Investment Management Limited (a Mellon Financial Company) of Queen Victoria Street, London. Newton Investment Management Limited are authorised and regulated by the Financial Services Authority. Newton Investment Management Limited was appointed Fund Manager in August 2004 and again in February 2009, following a retendering exercise.
The objective of the Fund is to achieve an annual income return of 20% more than the benchmark yield and thereafter long-term capital growth in real terms. The Fund Manager has committed to achieving the aim of the Fund taking into account the following investment restrictions:
- No more than 5% of the portfolio to be invested in any single issue (excluding Government Gilts and AAA rated Corporate bonds)
- No direct investment in tobacco related stocks
- No investment in securities that are not readily realisable
- No own company products without prior written approval (approval has been given for a holding in Newton Higher Income Fund, with a maximum of 1% permitted at time of purchase).
Key Features
|
|
| Aim |
To achieve an annual income return of 20% more than the benchmark yield and thereafter long-term capital growth in real terms. |
| Eligibility |
Any charitable organisation may invest in the Fund provided it is based in Northern Ireland and recognised as a charity by HM Revenue & Customs. |
| 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 |
This is an explanatory leaflet of the Fund and is not intended as investment advice. The value of your investment may go down as well as up, as can the income from it. |
| 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 end of the month but no later than the 9th working day of the following month. |
| Dividends |
Paid bi-annually on 1st June and 1st December. No tax is deducted from dividends. |
| CGT |
Does not apply to charities. |
| Tax |
Claims are dealt with by the Department. |
| Performance |
The shares were first issued in 1965 at £1 each. |
NICIFC Share Prices & Yields over the last 6 Years:
|
|
|
|
30 September 2005 |
947.40 |
4.22 |
40.00 |
30 September 2006 |
996.49 |
4.21 |
42.00 |
30 September 2007 |
1036.16 |
3.86 |
40.00 |
30 September 2008 |
856.11 |
5.14 |
44.00 |
30 September 2009 |
881.43 |
4.42 |
39.00 |
30 September 2010 |
942.75 |
4.14 |
39.00 |
Share Price & Number of Units in issue for Previous 12 months:
|
|
|
31 December 2010 |
985.42 |
3,055,715 |
31 January 2011 |
970.98 |
3,057,744 |
28 February 2011 |
975.72 |
3,063,197 |
31 March 2011 |
982.36 |
3,062,684 |
30 April 2011 |
1002.64 |
3,065,217 |
31 May 2011 |
992.91 |
3,071,202 |
30 June 2011 |
990.00 |
3,083,072 |
31 July 2011 |
971.87 |
3,089,001 |
31 August 2011 |
923.61 |
3,094,147 |
30 September 2011 |
893.25 |
3,100,211 |
31 October 2011 |
937.97 |
3,100,211 |
30 November 2011 |
928.69 |
3,100,211 |
Latest Valuation:
At 31 December 2011, the capital share value of the fund was £28.97million and a single share/unit was valued at 932.98 pence.
Latest Annual Accounts:
Fact Sheet:
Shareholder's Forum 7th March 2011:
Northern Ireland Central Investment Fund for Charities Advisory Committee Members
Northern Ireland Central Investment Fund for Charities Forms
Contact:
Alternatively contact Susan Calwell on 028 90829481 or Deborah Walker on 028 90829508 or email: nicifc@dsdni.gov.uk |
