Transcript NORTHERN IRELAND CENTRAL INVESTMENT FUND FOR …

NI CENTRAL INVESTMENT FUND FOR CHARITIES
Investment Factsheet as at 30 September 2014
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.
Fund Performance to 30th September 2014
Fund Information
Aim
The primary objective of the Fund is to
generate income and thereafter longterm capital growth in real terms.
Income
To achieve an annual income return in
excess of the benchmark yield.
Benchmark
FTA Govt All Stocks
25%
FTSE All Share
50%
FTSE World ex UK
20%
LIBID 7 Day
5%
3 months
3 Years Annualised
NICIFC
1.4%
12.6%
Composite Benchmark
1.1%
11.2%
Dividend Yield (Fund)
3.8%
Dividend Yield (Target)
2.9%
Portfolio and benchmark returns for the quarter to 30/09/14 are preliminary estimates
provided by Standard Life Wealth and have not been verified externally. They could,
therefore, be liable to subsequent adjustment.
Key Details
Long-term Total Return (Gross)
Fund
Launch Date
1965
Fund Size
£34.08m
Share Price
1116.58p
Dividend Payment Dates
Jun & Dec
Year End
30 Sept
Currency
Sterling
Annual Management Fee
0.35%
Currency
Sterling
Benchmark
20
15
10
5
-10
YTD 2014
2013
2012
2011
2010
2009
2008
2007
-5
2006
0
-15
Risk Factors
-20
Year
2006
2007
2008
2009
2010
2011
2012
2013
YTD
2014
NICIF
11.1
4.7
-17.8
20.1
12.6
-0.7
10.7
15.6
4.7
Benchmark
10.7
5.7
-16.5
19.3
12.9
1.2
9.3
13.6
3.5
The portfolio is being managed with a
Medium-High Risk approach.
The value of any investment may go
down as well as up, as can the income
generated from it.
Prospective Shareholders may wish to
seek independent advice before
investing in this Fund.
Northern Ireland Central Investment Fund for Charities is a registered charity with HMRC
This is a financial promotion and is not intended as investment advice.
NI CENTRAL INVESTMENT FUND FOR CHARITIES
Investment Factsheet as at 30 September 2014
Fund Manager
NICIFC Fund Composition
Ethical Restriction: No direct investment permitted
In tobacco stocks
The current Fund Manager is
Standard Life Wealth. 1 George
Street, Edinburgh EH2 2LL.
Standard
Life
Wealth
are
regulated
by
the
Financial
Conduct Authority.
Sector Allocation as a % of Total Market Value
British Government Bonds 9.68
Overseas Govt Index Linked Bonds 3.96
GBP Bonds 9.29
Standard Life Wealth applies a
global thematic stock picking
strategy. This focus on themes
helps to identify the catalysts for
change and capture opportunities
wherever they occur.
Oil & Gas 8.30
2.74%
1.66%
6.24%
Chemicals 3.88
9.68%
2.34%
3.01%
3.96%
Basic Materials 2.47
Industrials 6.13
Food & Beverages 3.65
Historic Fund Information
9.29%
11.33%
As at
30
Sept
Share
Price (p)
Annual
Dividend
(p)
8.30%
Yield (%)
Health Care 10.54
Retail 1.49
Media 2.56
5.24%
3.88%
Telecommunications 5.49
2008
856.11
44.00
5.14
2009
881.43
39.00
4.42
5.49%
2.56%
2010
942.75
39.00
4.14
1.49%
2011
893.25
40.00
4.48
Unitised Investments Equities 2.34
2012
973.84
40.00
4.11
Alternative 2.74
2013
1057.62
40.00
3.78
2014
1116.58
40.00
3.48
Shares in issue as at 31/06/2014
3,015,936
Shares in issue as at 30/09/2014
3,052,370
2.47%
6.13%
10.54% 3.65%
Utilities 5.24
Financials 11.33
Technology 3.01
Property & Alternative 1.66
Cash 6.24
Source: Standard Life Wealth 30th September 2014
Market Commentary
As the financial crisis of 2008 subsides from our memory, we note a clear divergence in global recovery rates. The US is
growing at its fastest rate since 2011, at 4.6% per annum, and the UK is expected to grow at a rate of 3.1% in 2014. This is a
really positive story but when compared with previous recoveries the conclusion must be that this is a very different type of
recovery and it is one which has passed many people by. There’s evidence that investment is starting to be made back into
businesses, as well as an increase in mergers and acquisitions. It’s uncertain at present whether these developments will
lead to the earnings growth that is being demanded by investors. But with markets having rallied to recent highs its important
that companies start to deliver sustainable earnings to justify their ratings.
By and large, economic news has continued along the same trend over the summer. The UK and the US continue to enjoy
above-average growth rates and steadily falling unemployment rates. The US should finish tapering off its stimulus package
in October and, like the UK, all eyes will be on the timing of the first interest rate rise and the pace of subsequent rises.
In such an uncertain world, the natural reaction is to focus on short term political and economic noise, ignoring the markets’
longer term prospects. Standard Life Wealth’s thematic investment process focuses on identifying long term drivers of
change. This allows them to generate investment ideas that can benefit from growth trends, whilst also helping to steer away
from areas of inherent risk. Standard Life Wealth continue to believe that in any economic environment, there will be
opportunities for investors who are willing to take a certain level of risk, to achieve defined investment objectives over the
long term.
Contact
NI Central Investment Fund for Charities. c/o Department for Social Development, The Lighthouse Building, 4th Floor, 1 Cromac
Place, Gasworks Business Park, Ormeau Road, Belfast BT7 2JB. Tel: (028) 90829240 or email [email protected] or
[email protected].
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 Standard Life Wealth Ltd.
All data as at 30 September 2014