HDD-ITT-48428 Provision of a Charitable funds investment Manager

Hywel Dda University Health board has awarded a contract for the provision of a charitable fund investment manager for Hywel Dda University Health Board.

The investment fund is to be split into two, each with a different objective, as follows:

GBP2.3m permanent endowment to be invested with the objective of;

A)Maximising income, where the income is to be released from the fund.

or

B)Delivering the best return for the fund on a “total return” basis (the Trustee invites comment in the tender on which of these options should be preferred).

The remaining GBP6.2m general investment with the objective of maximising the investment return, where the income, and capital are to be retained within the fund.

During the contract period there is a possibility that in the region of GBP1m will need to be released from the general investment fund in order to fund current ongoing projects.

The value of the investment fund may increase or decrease over time dependent on the resource commitment of the charity.

The Trustee has, in the past, preferred the investment advisor to actively manage the investment fund.

However, the Trustee is also open to suggestions to alternative approaches that investment managers may wish to put forward that they consider appropriate.

The Trustee will be looking at investments to have either a low or medium risk profile and will be guided with advice from the successful investment advisor linked to past performance of those investments.

The expected annual income stream, excluding investment income and returns of the charity is GBP2.2m.

approximately GBP1.5m, mainly from donations and legacies. The Trustees are committed under Charity Commission guidance not to accumulate funds unnecessarily and aims to spend income within a reasonable period. This commitment may affect the level of investment, and an annual review and discussion with the investment advisor will be undertaken regarding adjustments required.

The Trustee has an ethical policy in place which will apply to investments held. The current ethical policy is as follows:

1.The Hywel Dda University Heath Board Charity supports the NHS work of Hywel Dda University Health Board with the approved charitable purposes of;

the advancement of health and the saving of lives

the relief of those in need, by reason of youth, age, ill-health, disability.

the advancement of education (including research)

2.It has been determined that the following investments conflict with the charitable objects and purposes of the charity;

Investment in the production, manufacturing or supply of tobacco products.

Investment in the production, manufacturing or supply of alcoholic beverages.

3.Clearly there are some companies, in particular in the retail sector, which derive part of their turnover from the above two product groups. In proportion to harm caused by the moderate consumption of either, the following limits are set, above which investment will not take place;

Investment in the production or manufacturing of tobacco products at any level of turnover Investment in the supply of tobacco products where turnover of more than 5% is derived from this source.

Investment in the production, manufacturing of alcoholic beverages where more than 25% is derived from this source.