Investment Policy
OVERVIEW AND SCOPE
To enable the Board of Trustees to carry out their responsibilities, the Investment Policy below must be followed at all times. The policy applies to all trustees and advisors who are involved in planning or authorising investment of our charity’s funds. A copy of this policy will be given to all Trustees on appointment to the Board, all relevant staff and volunteers. The policy will be reviewed annually by the Board of Trustees and revised as necessary. The Charity Elsie Ever After will be referred to within this document as ‘EEA’.
OBJECTIVES AND RISK
EEA’s objective is to spend its resources in line with its vision and to be able to respond promptly to requests for help for bereavement support. On occasion, due to shifts in income and expenditure trends, the EEA may be holding larger than anticipated reserves. At such times the overall objective is to operate within a low-risk investment framework and to ensure high liquidity so cash can be accessed promptly.
The following approach to risk and return has been agreed for investing EEA funds:
Value of funds held:
- 0 – £20,000:
- £20,000 – £85,000:
- > £85,000:
These funds will be held in an instant access bank account. These funds will be invested in a longer term deposit account. These funds will be invested in a separate deposit account.
When choosing an account the following will be considered:
- The rates of interest on offer at different providers
- The timing of interest payable
- Any charges or penalties when accessing money or closing account
- Any reputational and other non-financial factors that are part of our charity
objectives
REVIEW AND MONITORING
EEA Trustee’s will review the funds held at each quarterly Trustee meeting. For amounts held less than £85,000 the Trustees will be responsible for investing in line with this policy.For any amounts held over £85,000 EEA Trustees will seek external independent investment advice.
EEA Trustees will review the investments held annually to ensure a reasonable rate of return, that the investments are suitably protected, still meet EEA’s needs and they are satisfied with the level of service provided.