35


the Fund Managers are re-appointed on an annual basis, the last such appointment having been made in June 2012.


The Investment Committee and Trustees are mindful of their obligation under the Trustee Act 2000 to conduct periodic independent reviews of their Fund Managers. Having undertaken a review in the previous year end it was agreed at the 13th February 2013 investment committee meeting to give due consideration to conducting a review in the forthcoming financial year.


I VSME T P LIY A


giing w a


v ree h ah


NET N O C ND OJCTI S The Trust’s investment performance objectives are “o pro d


BE VE t


hile p srving te fuds cp a s


vie fo nrae n anua n’ aitl bae in rel trm, ui


a e s sng a ttl reurn


r icess i n l gra oa


t pproc”. 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.


In the year under review the Investment Committee and Trustees continued with the benchmark of RPI +4% over rolling 5 year periods for long term performance measurement. Lazard run this benchmark alongside their composite benchmarks. It is envisaged that this gives the Trust the best of both worlds i.e. a multi asset approach that is measured against relevant indices over the short term and a “target return” approach over the longer term that meets the investment objective as well as one in which the fund managers are more conscious of the downside.


I VSME T PROMA E NET N E F R NC


As stated in the Financial Analysis section of this review, the performance for the year from both Fund Managers reflected the positive market conditions.


S I LLY RS OCA EPON I SBLE I VSMNT NET E S


The primary investment objective is to maximise total return 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.


RSR S P LIY EE VE O C


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 on-going income. The investment objective (as stated earlier) 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. Within the budget there exists the capacity, should the need arise, to curtail 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.


The Trustees will review this policy annually in the light of changing circumstances and alter it as necessary.


nt


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