For the year under review, the funds were invested within a bespoke benchmark recommended by each of the Fund Managers and approved by the Investment Committee and Trustees.
The
benchmarks aim to provide a yardstick for measuring the success of the investment managers whilst at the same time translating the charity’s circumstances, objectives and willingness to bear risk, into a suitable asset allocation with appropriate diversification to provide protection against falling share prices and increased volatility.
INVESTMENT PERFORMANCE
As stated in the Financial Analysis section of this review, the performance for the year from both Fund Managers reflected the prevailing market conditions.
SOCIALLY RESPONSIBLE INVESTMENTS Naturally the primary investment objective is to achieve optimal financial returns within the agreed risk parameters and constraints. Providing that this objective is not compromised in the process, the Fund Managers believe that it is also possible to develop a framework that allows a broader range of considerations, including environmental and social issues to be taken into account when selecting investments.
RESERVES POLI CY
In July 1998 the Savoy Educational Trust realised £36,800,584 from the sale of their shareholding in the Savoy Group plc. This sum formed the capital assets of the Trust and since that date has been invested in a diversified portfolio of investments.
The investment of the capital is the only source of ongoing income and the funds are invested in such a way as to seek total return over the long term in order to provide for real increases in annual grant giving while preserving the fund’s capital base in real terms. This objective helps to protect a core of investments and cash assets to generate income for future year’s grant awards sufficient to meet the needs of present and future beneficiaries.
The Trust sets out an annual budget to ensure, as far as is reasonably possible, that the charity’s annual expenditure objectives can be met, given certain assumptions about the yearly and future income streams.
activities specifically of those new applications presented at the quarterly meetings. At present the Trustees are able to maintain operating costs at a low level. They do, however, incorporate in their annual budget contingency plans for an increase in operating costs particularly with regard to further office relocation, rental and utilities.
The Trustees will review this policy annually in the light of changing circumstances and alter it as necessary.
DESIGNATED FUNDS – ENDOWMENT FUND
The Savoy Educational Trust received a legacy in year end 2001 of £30,000 from Olive Barnett, OBE who set up the Savoy Training Scheme and was also a former Trustee of the Savoy Educational Trust. It was requested by Miss Barnett that the funds be invested at the unfettered discretion of the Trustees to enable them to give an annual award. The Trustees agreed that they would match the sum received from the legacy and the capital would be ring fenced to provide an annual income to finance an award.
The income from this Fund is allocated to the Savoy Gastronomes for the ‘Olive Barnett Award’, details of which can be found on page 32.
36 Within the budget there exists the capacity, should the need arise, to curtail
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