FINANCIAL REVIEW AND RESULTS
FINANCIAL ANALYSIS OF THE YEAR In stark contrast to the previous year where the FTSE All Share returned -29.3% to 31st March 2009, in the year under review the FTSE All Share demonstrated a remarkable turnaround producing a return of 52.3% to 31st March 2010. Global equities enjoyed an exceptionally strong 12 month period, as confidence grew in the economic recovery and the MSCI World Index rose by 45% in sterling terms. The rebound was initially fuelled by an injection of liquidity by governments and
central banks as they undertook
extraordinary measures to stimulate the global economy. In the latter half of 2009 and into 2010, strong growth in the developing economies, stabilisation of banks and some signs of recovery in the corporate environment sustained equity price momentum. It has not all been good news, however, with the worrisome public debt situation in Greece, uncertainty surrounding the US Government’s regulatory programme, the UK election and fears over new asset bubbles arising, all concerning investors. This all led to increased market volatility as investors questioned the sustainability of the global rebound.
Against this improved market performance, the Trust saw a dramatic increase in the capital value of its investments.
31st March 2010 were £959,720, a decrease of (30.59%) on the previous year where incoming resources totalled £1,382,625.
The Trustees confirm that for each fund held by the charity the charity’s assets are available and adequate to enable it to fulfill its obligations.
FUND MANAGEMENT
All investments held by the charity have been acquired in accordance with the powers available to the Trustees.
For the year under review the Trust’s portfolio was managed in equal proportions by Schroders Investment Management Limited and Lazard Asset Management. Subject to satisfactory performance the Fund Managers are re-appointed on an annual basis.
The Investment Committee and Trustees are aware of their obligation under the Trustee Act 2000 to conduct periodic independent reviews of their Fund Managers. With this in mind, and as stated in last year’s annual report, a review of the Trust’s Fund Managers was undertaken by Portfolio Review Services. As a result of the review the Trust agreed to retain the services of the two incumbent Fund Managers for a further year. The reappointment was confirmed in July 2009.
Following completion of the review the Investment Committee agreed that they would invite Portfolio Review Services in the forthcoming year to monitor the performance of their Fund Managers specifically benchmarks.
focusing on performance, asset allocation and 30 The value of the Trust’s total assets as at 31st March
2010 was £41,390,939, an increase of 30.20% on the previous year where the Trust’s total assets as at 31st March 2009 totalled £31,791,163. Despite the sharp rebound in the capital value, income for the year continued its decline.
Total incoming resources as at
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