Presentation on theme: "Aim The primary objective of the Fund is to achieve an annual income return of 20% more than the benchmark yield and thereafter long-term capital growth."— Presentation transcript:
Aim The primary objective of the Fund is to achieve an annual income return of 20% more than the benchmark yield and thereafter long-term capital growth in real terms. Benchmark Income To achieve an annual income return of 20% more than the benchmark yield. NI CENTRAL INVESTMENT FUND FOR CHARITIES Investment Factsheet as at 31December 2012 Fund Information Launch Date1965 Fund Size£26.8M Share Price968.37p Dividend Payment DatesJun & Dec Year End30 Sept CurrencySterling Annual Management Fee0.35% CurrencySterling Key Details Long-term Total Return (Gross) Northern Ireland Central Investment Fund for Charities is a registered charity. Charity Tax Reference Number XR 3429. This is a financial promotion and is not intended as investment advice. Background The Northern Ireland Central Investment Fund for Charities (NICIFC) was set up in 1965 through the Charities Act (Northern Ireland) 1964, with the aim of providing Charities with the opportunity to invest all or part of their assets in a centrally pooled fund, administered by the Department for Social Development. The Fund is managed by recognised fund managers, with its investment policy and performance reviewed on a quarterly basis by a locally based Advisory Committee, appointed by the Department. The NICIFC operates as a Discretionary Managed Fund, with participating Charities allocated a proportionate number of shares based on the size of their investment and the most recent valuation (share price). The Fund invests in Fixed-interest securities, UK & Foreign Equities and selected Unitised Funds. The allocation between these asset classes is reviewed and adjusted periodically, in line with the Fund’s investment policy. Contact NI Central Investment Fund for Charities, c/o Department for Social Development, The Lighthouse Building, 4 th Floor, 1 Cromac Place, Gasworks Business Park, Ormeau Road, Belfast BT7 2JB Tel.: 02890 829 459 E-mail: email@example.com@dsdni.gov.uk Web: www.dsdni.gov.uk/vc-nicif Risk Factors Fund Performance 3 months to 31 December 2012 The portfolio is being managed with a medium risk approach. The value of any investment may go down as well as up, as can the income generated from it. FTA Govt All Stocks25% FTSE All Share50% FTSE World ex UK20% LIBID 7 Day5% NICIFC1.9% Composite Benchmark2.3% Estimated Portfolio Yield4.0% Benchmark Dividend Yield 3.0% Portfolio and benchmark returns for the quarter to 31/12/2012 are preliminary estimates provided by Newton Investment Management and have not been verified externally. They could, therefore, be liable to subsequent adjustment. 200720082009201020112012 NICIFC4.7-17.820.112.6-0.710.7 Benchmark5.7-16.519.318.104.22.168
NI CENTRAL INVESTMENT FUND FOR CHARITIES Investment Factsheet as at 31 December 2012 Fund Manager Newton Investment Management Limited, Queen Victoria Street, London. Newton is a global thematic stock picking company. This focus on themes helps to identify the catalysts for change and capture opportunities wherever they occur. Newton were first appointed by the Department as managers of the Fund in August 2004 and then reappointed in February 2009, following a successful retendering exercise. Issued by Northern Ireland Central Investment Fund for Charities (NICIFC). NI CIFC is managed by the Department for Social Development through recognised fund managers, and its investment policy is guided by a locally based Advisory Committee appointed by the Department. All information (excluding Historic Fund Performance) is sourced from Newton Investment Management Ltd. All data as at 31 December 2012. Source: Newton Investment Management, as at 31 December 2012 Market Commentary Historic Fund Information As at 30 Sept Share Price (p) Annual Dividend (p) Yield (%) 2005947.4040.004.22 2006996.4942.004.21 20071036.1640.003.86 2008856.1144.005.14 2009881.4339.004.42 2010 2011 942.75 893.25 39.00 40.00 4.14 4.48 2012973.8440.004.11 Shares in issue as at 30/09/123,584,848 Shares in issue as at 31/12/122,766,788 Ethical Restriction: No direct investment permitted in tobacco stocks. Sector Allocation as a % of Total Market Value NICIFC Fund Composition The legacy of debt accumulation and debt-fuelled economic growth in the years before the global credit crisis continue to shape the fortunes of the financial markets. Measures implemented by the major central banks in recent months demonstrate policymakers fear that allowing market forces to control the necessary budgetary and balance-sheet adjustments in a deleveraging world is likely to be too damaging to economic prospects. Instead, monetary authorities have acted largely to keep those forces at bay, by cutting interest rates to close to zero and pumping money into the global financial system, in attempts to shore up economic confidence. It is thought unlikely that such policies will succeed in creating economic demand, but they may serve to bring forward that demand, and to exert a great influence on financial markets. Central bankers are using markets explicitly to stimulate economic activity and, where they are themselves sizeable buyers in those markets (for example, the Bank of England in the gilt market, the US central bank in the mortgage-backed security market, and the ECB, possibly, in peripheral eurozone bond market), their scope to affect asset prices is significant. There are considerable pitfalls for financial-market participants amid such state intervention. Near-zero interest rates and unorthodox money printing measures may force investors to take on more risk for a given return, distort the pricing of financial assets, and stir inflation which threatens investors real interest. Furthermore, policymakers hastening of assets-price rises may entail lower returns in future than would otherwise have been the case. To address these challenges, we think it is essential to take an active and flexible investment approach, to think globally about risks and opportunities, and to evaluate prospects across asset classes. Above all, we believe it is appropriate to maintain a balance in portfolios which reflects contrasting risks and opportunities.