The Committee have established an overall investment policy, which involves the Society’s available
funds being categorised based on the investment time horizon/cash funding requirements, for each of which there is an appropriate investment policy. 

Short to medium term funds are likely to be spent within the next five years. The funds will be invested in high interest deposit accounts which may be of a fixed term nature. The aim of such investments is to achieve the best available income returns, whilst minimising risk to capital and ensuring the cashflow requirements of the Society are met.

Long term funds, including the endowment funds, are not required to be spent within the next five years. They will be invested in collective investment schemes which seek income and long-term capital growth from a broadly diversified portfolio of assets including equities and fixed interest securities.

Relevant Legislation relating to this policy:

  • Charities and Trustee Investment (Scotland) Act 2005

The investment policy was approved by the committee in March 2011.

How we apply the policy

In applying the above long term funds policy the committee has agreed to invest in the Alpha Common Investment Fund for Income & Reserves managed by Sarasin Investment Funds Ltd.

Common Investment Funds allow the Society to access a variety of asset classes through a single investment, achieving appropriate diversification with a broad spread of risk and obtaining professional investment management at low cost. Common Investment Funds are charities in their own right, and offer the benefits of pooled investments to other charities.

The Alpha Common Investment Fund for Income & Reserves is a conservative / cautious balanced fund with an emphasis on capital preservation and generating a high income. The fund typically holds approximately 75% of the fund in fixed interest bonds and cash, with the balance held in equities and other investments including property. 

Although the Society does not have any ethical constraints as part of its own investment policy the selected fund that we invest in does operate an ethical investment policy, including a restriction on investing in tobacco companies. Sarasin Investment Funds Ltd have confirmed that they do not believe that operating an ethical investment policy will have a detrimental impact on the investment returns.

The latest scheme particulars under which the fund operates are available in the attachment below.

The information bar on the right hand side contains summary information on the fund and links through to a fund information publisher which contains more detail about the fund.