City of Winchester Trust
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The City of Winchester Trust Ltd

INFORMATION PACK FOR
TRUST COUNCIL MEMBERS


12 INVESTMENT POLICY


The investment objectives of the Trust are to preserve and enhance the Trustís assets to allow the charity to finance its activities both in the short and longer term.

The Trustís policy is to balance its investments in financial instruments between active and passive investment approaches. The active element comprises a portfolio managed on a discretionary basis by an investment manager, while the passive element comprises in vestments in low cost Exchange Traded Funds, for which the Trustís investment manager acts as custodian. In addition part of the Trustís leasehold property, the flats at 30 Upper Brook St, Winchester is held for investment purposes, the rental income representing the main element of the Trustís annual income.

The investment objective for the Trustís investments in financial instruments is to achieve a balance between capital growth to secure the Trustís longer term objectives and income generation to provide income, in addition to membership subscriptions, to finance its current charitable activities.

The Trustís policy is to accept a high risk of volatility within its investment portfolio, both in terms of capital value and income generation, while aiming over time to achieve returns above the rate of inflation. This policy has been adopted due to the low returns currently available on lower risk asset classes and the Trustís capacity as a long term investor to accept temporary capital losses as a result of fluctuations in equity markets. The Trustís investments are confined to listed investments of a collective nature, in order to achieve diversification, which reduces the risk of permanent capital loss arising from the failure of a particular company or sector.



[Revised June 2017]