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FINANCIAL REVIEW AND RESULTS


FINANCIAL ANALYSIS OF THE YEAR In last year’s review the Trustees outlined the dramatic increase in the capital value of their investments owing to the very strong rebound in equity markets to 31st March 2010.


Overseas equity markets also generated steady, if In the year


under review equity market returns have been reasonable, but more modest, with the FTSE All Share Index returning 8.7% to 31st March 2011.


unexciting returns with the MSCI World Index returning 7.9% despite a number of significant macro events. With continuing low interest rates and investors adding to risk assets throughout the year bond returns were again relatively subdued with the FTA Government All Stocks Index producing a total return of 5.2%. Emerging markets outperformed developed markets over the 12 months, despite weakness in the first quarter of 2011.


while Japan lagged other major markets. High beta cyclical stocks made the strongest gains over the period, though banks lagged the wider index as a result of sovereign debt issues.


There were, however, strong gains in US equities, From a sector


perspective, economically sensitive sectors, such as energy, industrials, materials, and consumer discretionary performed well, while more defensive areas of the market, such as utilities and health care were among the worst performing sectors. In fixed income, corporate bonds were stronger than government bonds.


Against this background, the capital value of the Trust’s investments increased, albeit at a relatively more modest rate than the previous year. The value of the Trust’s total assets as at 31st March 2011 was £42,396,535, an increase of 2.43% on the previous year where the Trust’s total assets as at 31st March 2010 totalled £41,390,939. The Trustees are delighted to record that in the year under review there was a reversal of the last two year decline in the income the Trust received.


incoming resources as at 31st March 2011 were £1,017,434, an increase of 6.01% on the previous year where incoming resources totalled £959,720.


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.


Mindful of their obligation under the Trustee Act 2000 to conduct periodic independent reviews of their Fund Managers, the Investment Committee invited Portfolio Review Services (PRS) to conduct a follow-up review to the more extensive review carried out the previous year. The Committee requested that PRS specifically focus on performance, asset allocation and benchmarks. 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 June 2010.


The Committee also agreed to continue with the services of PRS in the ensuing year.


INVESTMENT POLICY AND OBJECTIVES The Trust’s investment objectives are “


preserving t e fund’s c pital base i h a


to provide for increases in annual grant givi n re


al terms, using a total return approach ng while ”. Funds are


invested in such a way as to maximise total return while providing a level of income agreed annually by the Trustees. Research has shown that the ability to apply a total return approach balancing investment return and spending helps to mitigate the impact of any decrease in income.


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