Northern Ireland Central Investment Fund for Charities background
Established in 1965 through the Charities Act (Northern Ireland) 1964, the Northern Ireland Central Investment Fund for Charities (the Fund) aims to provide trustees of charities with the opportunity to invest all or part of their funds with the benefit of expert supervision. It is managed by the Department through recognised fund managers, and its investment policy is guided by a locally based Advisory Committee appointed by the Department, which meets in February, May, August and November each year.
The Fund operates as a discretionary managed fund. Participating charities pool their investments and are given a proportionate number of shares based on the most recent valuation (share price).
The Fund invests in fixed-interest securities and selected equities. The allocation between fixed-interest securities and equities is reviewed and adjusted periodically, in line with the Fund’s investment policy.
Current fund manager
The current fund manager is Standard Life Wealth who are authorised and regulated by the Financial Conduct Authority.
The objective of the fund is to generate an income return in excess of the benchmark yield and thereafter long-term capital growth (+5 years) in real terms. The Fund manager has committed to achieving the aim of the Fund taking into account the following investment restrictions:
- no more than 5 per cent of the portfolio to be invested in any single issue (excluding Government Gilts and AAA rated Corporate bonds)
- no direct investment in tobacco related stocks
- no investment in securities that are not readily realisable
- no own company products without prior written approval
The composite benchmark is shown in the table below, along with the permitted ranges within which the Department and the Advisory Committee will allow the fund manager to operate.
|Range (percent)||Benchmark index comparator|
|Fixed interest||25||15 - 35||FTA Government All-Stocks Index (12.5%) BOFAML STG Non-Gilts (12.5%)|
|UK Equities||50||35 - 65||FTSE All Share Index|
|Overseas Equities||20||15 – 35||FTSE World (ex UK) Index|
|Other/Cash||5||0 - 10||7 day cash|
Northern Ireland Central Investment Fund for Charities Statement of Investment Policy
The Investment Policy Statement gives guidelines on the accountability standards in place to manage and monitor the performance of the Fund.
At 30 June 2018, the capital share value of the fund was £40,136,254 and a single share/unit was valued at 1311.22 pence.
Key features of NICIFC
Aim - to achieve an annual income return in excess of the benchmark yield and thereafter long-term capital growth in real terms.
Eligibility - any charitable organisation may invest in the Fund provided it is based in Northern Ireland.
Benefit - investment in the fund should be viewed as long-term to achieve maximum benefit from capital growth. Benefit is also derived from dividend payments, which are paid bi-annually.
Risk Factors - based on the definitions of risk determined by Standard Life Wealth, the portfolio is categorised as being managed with a higher medium risk approach. The value of your investment may go down as well as up, as can the income from it.
Contributions - accepted at any time and earn interest from the date of receipt. Shares are allocated immediately after the next monthly valuation following receipt. There is no minimum contribution.
Withdrawals - these are processed at the next end of month valuation.
Valuation - completed as soon as possible after the end of the month but no later than the ninth working day of the following month.
Dividends - paid bi-annually on 1 June and 1 December. No tax is deducted from dividends.
Capital Gains Tax - does not apply to charities.
Tax - claims are dealt with by the department.
Performance - the shares were first issued in 1965 at £1 each.
- Northern Ireland Central Investment Fund for Charities Annual Report 2017
- Northern Ireland Central Investment Fund for Charities Annual Report 2016
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These fact sheets provide a quarterly overview of the performance and composition of the Fund.
- NICIFC fact sheet 31 March 2018
- NICIFC fact sheet 31 December 2017
- NICIFC fact sheet 30 September 2017
- NICIFC fact sheet 30 June 2017
Northern Ireland Central Investment Fund for Charities forms
Northern Ireland Central Investment Fund for Charities forms for shareholders to make withdrawals or change details:
Northern Ireland Central Investment Fund for Charities Advisory Committee Members
Biography of the members of the Northern Ireland Central Investment Fund for Charities Advisory Committee
Philip Keers (Chairman)
Philip was, until recently Head of Projects at NCB Stockbrokers in Dublin, a position he has held for the past nine years. He is now studying for an MBA at the Ulster University Business School.
Previously, he was employed as Investment Manager in the Belfast office of NCB Stockbrokers. Prior to returning to Northern Ireland, Philip was Head of European Equities with General Accident plc for six years.
He attained a Bachelor of Administrative Studies (Hons) degree from the University of Dundee, is an Associate Chartered Financial Analyst and holds the PRINCE2 (Foundation Level) qualification in Project Management.
Philip has been a member of the NICIFC Advisory Committee since 1 March 2009 and was appointed Chairman from 1 August 2014.
David is a Fellow of the Institute of Chartering Accountants with 25 years experience of public sector finances include strategic planning, service delivery, financial and investment management, preparation of accounts, compliance with Managing Public Money and risk management.
He is the Chief Executive (Accounting Officer) of the Northern Ireland Local Government Officers' Superannuation Committee which manages Northern Ireland's largest investment fund and provides pension services to over 110,000 members. As well as Mr Murphy's work for NILGOSC he is also a lay advisor to the Northern Ireland Courts and Tribunal Service Courts Funds Office Judicial Liaison Group, the advisory body which manages the funds currently held in Court.
David was appointed to the NICIFC Advisory Committee on 1 September 2016.
Jeremy has worked for 29 years in UK regulated investment businesses, in a range of roles. He has served on the Executive Committee of a local bank, with leadership responsibility for investment advice, share dealing service, discretionary portfolio management and development and implementation of new investment management and advice policies and governance procedures.
He has previously chaired the Trustee Investment Committee for the UK DC Pension Fund of a UK bank.
Jeremy is a Fellow of the Institute of Bankers and also has an MBA from the University of Ulster. Investment qualifications include the CII Certificate in Financial Planning and a number of examinations for the Diploma in Regulated Financial Planning.
Lindsay currently holds roles within the Northern Ireland Judicial Appointments Commission and the Local Government Pension Scheme for Northern Ireland, as well as being a School Governor at Sullivan Upper and a Trustee for the charity Relate (NI). Lindsay was previously a Partner in PricewaterhouseCoopers for 24 years, retiring as NI Head of Tax in 2012 and was personally authorised by the Financial Conduct Authority to provide investment advice in the UK.
Lindsay was appointed to the NICIFC Advisory Committee on 1 August 2014.
Charitable donations and bequests
Under the Charities Act (NI) 1964 and the Charities Order 1987 the Department acts as trustee to some 300 charities in the following circumstances:
- where donations are transferred by the existing charity trustees under Section 15 of the 1964 Act
- where there is uncertainty concerning the continued operation of the charity concerned
- where the trusteeship of the Commissioners of Charitable Donations and Bequests was transferred to the then Ministry of Finance in 1922 on the setting up of the Northern Ireland Government
It is the Department's policy to invest the capital of these charities in the Northern Ireland Central Investment Fund for Charities (NICIFC) unless prevented by the charity's governing instruments. Dividends from the NICIFC are received into the Charitable Donations and Bequests Account and paid over to local administrators on the Department's behalf.
These financial statements relate to the Charitable Donations & Bequests Accounts detailing receipts and payments for the financial year.
- Charitable Donations and Bequests Annual Report 2017
- Charitable Donations and Bequests Annual Report 2016
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