Your Councillors


Queen’s Own Royal West Kent Regiment Museum Trust Committee

11 July 2017

Is the final decision on the recommendations in this report to be made at this meeting?

Yes

 

Review of Investments

 

Final Decision-Maker

Queen’s Own Royal West Kent Regiment Museum Trust Committee

Lead Head of Service

Head of Finance

Lead Officer and Report Author

Paul Holland, Senior Finance Manager (Client)

Classification

Public

Wards affected

All

 

 

 

This report makes the following recommendations to this Committee:

1.   That the current investment be retained;

2.   That investment performance be monitored and reported the Committee as part of future financial reports; and

3.   That a further report be brought to the Committee should suitable alternative investments be identified.        

 

 

This report relates to the following corporate priorities:

·         Keeping Maidstone Borough an attractive place for all – ensuring that there are good leisure and cultural attractions.

 

 

 

Timetable

Meeting

Date

Queen’s Own Royal West Kent Regiment Museum Trust Committee

11 July 2017



Review of Investments

 

1.        PURPOSE OF REPORT AND EXECUTIVE SUMMARY

 

1.1     At the last meeting of the Committee a request was made for a review of the investments held to be undertaken to ensure that the current investment was appropriate and generating an acceptable return for the Trust.                                                                                                                  

 

2.        CURRENT INVESTMENT

 

2.1     Until 2014 the investments in the Trust were held in the Combined Charitable Capital Fund. At that point the fund manager (Collins Stewart Wealth Management) was acquired by Canaccord Financial Inc. and the Charitable Capital Fund was discontinued. The investment of the Trust was transferred to the CGWM (Canaccord Genuity Wealth Management) Select Bond Fund, where it is still invested.                                                                                

2.2     The main difference between the two funds is the Charitable Capital Fund was exclusively for charities, whereas the Select Bond is open for investment by anybody. Whilst the Charitable Capital Fund sought to maximise capital growth within sensible risk parameters the Select Bond seeks to cap the volatility of the value of the investment at 6% annually. In that respect it is considered to be a suitable investment as maintaining the value and security of the investment is the main aim of the fund.

 

 

3.        ALTERNATIVE INVESTMENTS                                                                                         

3.1     There are other investments designed exclusively for charities. The most commonly used one amongst the other Trust funds that the Council administers is one called Charifund, which is provided by M&G Investments. As with the original Charitable Fund investment they put a strong emphasis on the security of the investment.                                                                               

3.2     For comparison purposes the table below shows what the quarterly investment income return would be with both investments based on the current value.

                                                                                                   

3.3     As the table shows the current investment is performing slightly better than the Charifund investment at the moment, although of course this a snapshot based on current figures.                                                                               

3.4     There are a number of other charitable investments available. The Council uses investment advisors and it is suggested that they be approached with a view to identifying and comparing some suitable alternatives to see if there is a significantly better one available. If any are identified a further report will be brought to the Committee.                                  

_________________________________________________________

 

4.        PREFERRED OPTION AND REASONS FOR RECOMMENDATIONS

 

4.1      It is recommended that the current investment be retained; that investment performance is monitored and reported the Committee as part of future financial reports; and that a further report be brought to the Committee should suitable alternative investments be identified.            

 

 

5.       NEXT STEPS: COMMUNICATION AND IMPLEMENTATION OF THE DECISION

 

5.1    Investment performance will continue to be monitored and reported to the Committee.    

 

 

6.       CROSS-CUTTING ISSUES AND IMPLICATIONS

 

Issue

Implications

Sign-off

Impact on Corporate Priorities

There are no additional implications arising from this report.

 

Risk Management

Security of charity funds is paramount in any investment decision.

Senior Finance Manager (Client)

Financial

Investment income provides a source of income for the Trust to continue with its ongoing activities.

Senior Finance Manager (Client)

Staffing

There are no additional implications arising from this report.

 

Legal

There are no additional implications arising from this report.

 

Equality Impact Needs Assessment

There are no additional implications arising from this report.

 

Environmental/Sustainable Development

There are no additional implications arising from this report.

 

Community Safety

There are no additional implications arising from this report.

 

Human Rights Act

There are no additional implications arising from this report.

 

Procurement

There are no additional implications arising from this report.

 

Asset Management

There are no additional implications arising from this report.

 

 

7.        REPORT APPENDICES

 

None.

 

 

8.        BACKGROUND PAPERS

 

None.