Transcript NORTHERN IRELAND CENTRAL INVESTMENT FUND FOR …

NI CENTRAL INVESTMENT FUND FOR CHARITIES
Investment Factsheet as at 30 June 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 June 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
1.9%
8.8%
Composite Benchmark
1.9%
7.6%
Dividend Yield (Fund)
3.9%
Dividend Yield (Target)
2.9%
Portfolio and benchmark returns for the quarter to 30/06/14 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
£33.5m
Share Price
1113.57p
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
3.3
Benchmark
10.7
5.7
-16.5
19.3
12.9
1.2
9.3
13.6
2.3
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.
Perspective Shareholders may wish to
seek independent advice before
investing in this Fund.
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.
NI CENTRAL INVESTMENT FUND FOR CHARITIES
Investment Factsheet as at 30 June 2014
Fund Manager
NICIFC Fund Composition
Ethical Restriction: No direct investment permitted
In tobacco stocks
The current Fund Manager is
Standard Life Wealth. 30 Lothian
Road, Edinburgh EH1 2OH.
Standard
Life
Wealth
are
regulated
by
the
Financial
Conduct Authority.
Sector Allocation as a % of Total Market Value
British Government Bonds 10.26
Overseas Govt Index Linked Bonds 4.11
GBP Bonds 8.82
1.66%
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.
2.74% 3.93%
2.33%
2.86%
Oil & Gas 8.81
Chemicals 4.04
10.26%
4.11%
Basic Materials 2.73
Industrials 6.17
Food & Beverages 4.31
Historic Fund Information
As at
30
Sept
2007
2008
Share
Price (p)
1036.16
856.11
Annual
Dividend
(p)
40.00
44.00
Yield (%)
11.73%
8.82%
5.29%
8.81%
Retail 1.50
Media 2.56
Telecommunications 5.57
3.86
5.14
2009
881.43
39.00
4.42
2010
942.75
39.00
4.14
2011
893.25
40.00
4.48
2012
973.84
40.00
4.11
2013
1057.62
40.00
3.78
Shares in issue as at 31/03/2014
2,895,144
Shares in issue as at 30/06/2014
3,015,936
Health Care 10.58
5.57%
2.56%
1.50%
4.04%
2.73%
6.17%
10.58%
4.31%
Utilities 5.29
Financials 11.73
Technology 2.974
Unitised Investments Equities 2.33
Alternative 2.74
Source: Standard Life Wealth 30th June 2014
Property & Alternative 4.45
Cash 3.93
Market Commentary
Unprecedented levels of volatility have been a feature of the post-credit crunch landscape, yet intriguingly, global financial
markets are currently less volatile than at any time in almost a decade and despite mixed messages from the Bank of
England the market is still expecting interest rates to stay low for the foreseeable future. The European Central Bank has
launched a series of new initiatives to support the single currency, cutting interest rates to record lows and boosting lending
facilities. The cost of government borrowing sits at record lows for certain European countries. Spain’s 10 year yield is now
lower than at any point since records began in 1789. Similarly, France’s borrowing costs are lower than at any point since
1746 and Italy’s the lowest since 1808. Firstly this demonstrates how unprecedented the current market conditions are and
secondly, illustrates the confidence investors have in the ability of central bankers to guide financial markets through the
economic maelstrom. With the Vix index (a measure of market volatility) at an even year low, it would seem that global
investors are not expecting dark macroeconomic clouds to unsettle their sea of investable tranquillity.
Standard Life Wealth’s thematic investment process remains focused on identifying long term drivers of change in the world,
regardless of whether they are positive or negative. These themes help generate suitable investment ideas that can benefit
from the events taking place in the world, whilst also steering away from areas of inherent risk. With constant doomsday
coverage of financial markets in the mainstream news, it is easy to forget 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
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 June 2014