COIF CHARITIES FIxEd InTEREST Fund InTERIM REpORT ... CCLA COIF...COIF CHARITIES FIxED INTEREST FuND...

COIF CHARITIES FIxEd InTEREST Fund

InTERIM REpORT And

unAudITEd FInAnCIAl STATEMEnTS

Half year ended 30 June 2020

COIF CHARITIES FIxED INTEREST FuND

Inter im Report and unaudited Financial Statements02 30 June 2020

CONTENTS

Report of the Board 03

Report of the Investment Manager* 06

Summary r isk indicator 09

Comparative table 10

portfolio analysis 12

portfolio statement* 13

Statement of total return 15

Statement of change in net assets attr ibutable to unitholders 15

Balance sheet 16

note to the financial statements 17

distr ibution tables 18

Statement of Board, Trustee, depositary and Manager responsibilities 19

directory* 24

*Collectively, these comprise the Manager’s Report.

References to “CClA” refer to the CClA Group, comprising CClA Investment Managementlimited and CClA Fund Managers limited.

Disability Discrimination Act 1995Extracts from the Interim Report and unaudited Financial Statementsare available in large print and audio formats.

On behalf of the Board, I have pleasure inpresenting the Interim Report and FinancialStatements of the COIF Charities Fixed InterestFund (the Fund), which includes a separatereport from CClA Fund Managers limited(the Manager) as Manager of the Fund.

Structure and management of the FundThe Fund is a Common Investment Fundestablished in 1990 and is now regulated by theScheme dated 29 november 2000 and madeunder section 24 of the Charities Act 1993, nowsection 96 of the Charities Act 2011 and amendedby resolutions of the depositary of the Funddated 13 May 2009, 21 July 2014, 22 July 2014and 17 november 2015 (as amended from time totime). The Fund is managed by the Manager as anunregulated collective investment scheme and asan alternative investment fund in accordance withthe Financial Conduct Authority (FCA)Regulations and the Alternative Investment FundManagers directive (AIFMd) legislation.

The Board, created under the Scheme, ismade up of individuals appointed under theScheme. Together, these individuals have wideexperience of finance, investments, charities andthe law. no Board member is required to beauthorised by the FCA because the Board doesnot carry out regulated activities in relation tothe Fund. The investment management,administration, registrar and secretarial functionsof the Fund have been delegated to theManager. The Board meets at least four timesper annum to receive reports and monitor theprogress of the Fund.

The Board is responsible for setting andsubsequently reviewing the investment policyof the Fund, monitoring performance, appointingthe Auditors to the Fund and agreeing the feescharged by the depositary, the Manager andthe Auditors.

The Trustee and depositary, HSBC Bank plc,appointed under the Scheme is responsible forthe supervision and oversight of the Manager’scompliance with the Scheme and Schemeparticulars and also for the custody andsafekeeping of the property of the Fund. It is alsoresponsible for the appointment and supervisionof the Registrar of the Fund. The divisionbetween management and depositary functionsprovides an additional layer of protection forunitholders. The Board, depositary and Managerare considered Charity Trustees of the Fundwithin the meaning of the Charities Act 2011.

Investment objectiveThe Fund aims to provide investors with anincome yield and a total return in excess ofthe benchmark.

Investment policyThe Fund is an actively managed, diversifiedportfolio invested predominantly in sterlingdenominated fixed interest securities and willconsist primarily of uK fixed interest securities,but may also include other asset classes.



REpORT OF THE BOARD

for the half year ended 30 June 2020 (unaudited)

BenchmarkThe composite benchmark for the Fund isMarkit iBoxx™ £ Gilts Index 50% and MarkitiBoxx™ £ non Gilts Index 50%.

Target investorsThe Fund is aimed at charities looking for agood level of income distributions. The Fund istargeted at investors with an understanding orprevious history of investing in similar types offund, with appropriate levels of risk tolerance andability to bear loss.

please note that the Manager is not required toassess the suitability of the Fund against eachinvestor.

Our investors may be either retail or professionalclients (both per se and elective).

Review of investment activities and policiesof the FundThe Board met quarterly during the period tocarry out its responsibility for the approval ofinvestment strategy and for setting distributionpolicy, to reviews investment diversification,suitability and risk and to review the performanceof the Fund. In addition, the Board monitoredthe administration, expenses and pricing ofthe Fund.

The Board reviewed the progress of the Managerand approved the valuation of the investments inthe Fund, which are included within theportfolio statement of these Financial Statements.

during the period, the Board also met quarterlywith the Manager, to review the investments,transactions and policies of the Fund. TheManager’s report, which appears later, providesfurther details.

Responsible investment and stewardshipThe Fund is managed in accordance withCClA’s responsible investment approach. Thisintegrates environmental, social and governanceissues into investment decision making andprioritises ongoing stewardship with investeecompanies. These activities are conducted withthe aim of increasing the security of the Fund.

The Manager is a signatory to the unitednations backed principles for ResponsibleInvestment (pRI) and the Financial ReportingCouncil’s Stewardship Code. The most recentpRI Assessment and the full response to theStewardship Code are available athttps://www.ccla.co.uk/our-approach/how-we-approach-stewardship-and-ethics.

Ethical investmentThe Board’s main purpose is to obtain the bestreturn for unitholders, consistent withcommercial prudence and the need to ensurediversification of assets.



REpORT OF THE BOARD


The Board has adopted an ethical investmentpolicy which reflects client priorities researchedby the Manager. The Fund prohibits investment incompanies that have been identified by our third-party data provider (MSCI), as being involved in:

• producing landmines, cluster bombs orchemical/biological weapons;

• producing tobacco products;• having significant (>10%) turnover relating

to online gambling or the productionof pornography.

Companies that have not responded to persistentengagement on compliance with:

• The IlO Core labour Standards;• The un Guiding principles on Business and

Human Rights; and• norms relating to Biodiversity, Toxic Waste and

Climate Change disclosure;

are also restricted from investment.

Controls and risk managementThe Board receives and considers regular reportsfrom the Manager. Ad hoc reports and informationare supplied to the Board as required. The Managerhas established an internal control framework toprovide reasonable, but not absolute, assurance onthe effectiveness of the internal controls operatedon behalf of its clients. The effectiveness of theinternal controls is assessed by the directors andsenior management of the Manager on acontinuing basis.

With the outbreak of the COvId-19 pandemicduring the first quarter of 2020, the Board hadadditional informal meetings with the Managerduring the first six months of 2020 to considera broad range of relevant issues includinginvestment strategy, performance, liquidity andclient behaviours.

during the period, the Board, assisted by theManager, reviewed the Fund’s systems ofinternal control and risk report.

n MorecroftChairman8 September 2020



REpORT OF THE BOARD




performanceOver the first half of the year the Fund achieveda return after expenses of 4.68%, this comparesto a return on the benchmark of 6.57%. Themain influence on relative performance was thedefensive bias to investment strategy. In a risingmarket the cautious portfolio structure wasunhelpful. Another negative factor was arelatively high allocation to corporate bondswhich underperformed the government issuedalternatives. The gross dividend yield on theportfolio was 3.13%, the gross redemption yield0.94%. When the income yield is higher thanthe gross redemption yield some of the incomepayment is being made at a cost to capital.

market ReviewuK fixed income markets rose over the period.Initially the sector enjoyed support as a safehaven as investors came to terms with the natureand likely economic impact of the pandemic.prices improved again as interest rates fell andthe Bank of England (BoE) announced a hugequantitative easing programme to support theeconomy through the recession and beyond.Corporate bonds underperformed initially ascredit spreads widened in the face of fallingactivity and fears of corporate failures, but thisweakness moderated later when the scale of thesupport programme from by the BoE andgovernment became clear. In an environment

REpORT OF THE INvESTmENT mANAgER


Annualised total capital and income return

Six months 1 year 5 years 10 yearsTo 30 June 2020 % % % p.a. % p.a.

performance against market indices (after expenses)

COIF Charities Fixed Interest FundIncome units* 4.68 6.74 4.91 5.25Accumulation units* 4.69 6.75 4.92 5.26Benchmark# 6.57 9.24 5.89 6.03iBoxx £ Gilts 9.73 11.98 6.31 6.00iBoxx £ non Gilts 3.34 6.41 5.39 6.09# Benchmark – Composite: From 01.01.16 iBoxx £ Gilt 50% and iBoxx £ non Gilt 50%. To 31.12.15

Barcap £ Gilt 50% and £ Agg 100mm non Gilt 50%. To 31.12.12 Barcap £ Gilt 80% and £ Agg100mm non Gilt 20%.

* Mid to mid plus income re-invested.Source: CClA.



where interest rates were expected to remain atultra-low levels, one where a further cut to BaseRate, was thought more likely than an increase,it was long dated bonds which performed best.

StrategyThe Fund is invested in a diversified portfolioof uK government bonds and good qualitycorporate bonds. There is a bias towardscorporate issues because these tend to providea higher income. At the end of the period therespective weightings were 58.49% in corporatebonds, 37.15% in government securities and4.36% in cash. All the bonds held are of goodquality; 9.66% are rated AAA, 53.75% AA,18.59% A, 12.34% BBB and 5.66% are unrated.

OutlookWe expect the uK economy to grow in thesecond half of the year as recovery builds,although output for the year as a whole is likelyto be circa 9% down on that achieved in 2019.Indeed, even though the recovery is expected tocontinue through 2021, it is unlikely that all theoutput lost will be recovered by the end of thatyear. Interest rates are expected to stay at or nearcurrent levels and inflation will remain low,falling over the remainder of the year beforerising in 2021 as a weak oil price drops out ofthe comparative data. There are significantthreats to these expectations, near to home fromBrexit, also from the worsening relationshipbetween China and the uS which coulddamage world trade as it struggles to recoverfrom the global recession. This environmentshould serve to underpin sector values butalthough downside risk appears limited, soto do potential returns given the low yieldscurrently on offer.

J BevanChief Investment OfficerCClA Fund Managers limited8 September 2020







Risk warningpast performance is not a reliable indicator offuture results. The price of the Fund’s units and anyincome distributions from them may fall as well asrise and an investor may not get back the amountoriginally invested.

The Fund’s units are intended only for long-terminvestment and are not suitable for money liable tobe spent in the near future. units are realisable oneach weekly dealing day only.

The gross redemption yield is an estimate of totalreturn over the long term. The Fund’s gross dividendyield and gross redemption yield are not guaranteedand will change over time. When the Fund’sdistribution yield is higher than the grossredemption yield, some revenue is being paid atthe expense of capital.

Top ten changes in portfolio composition

Cost £’000

purchases:Citigroup 5.15% 2026 1,222Apple 3.05% 2029 891GlaxoSmithKline Capital 1.625% 2035 794Bnp paribas 1.875% 2027 497

proceeds £’000

Sales:uK Treasury 2.25% 2023 2,135AxA 5.453% variable perpetual 1,641British Telecom 8.625% 2020 1,065Heathrow Funding 6% 2020 1,050Mcdonald’s 6.375% 2020 600Thames Water utilities CaymanFinance 2.375% 2023 546Telereal Secured Finance 4.01% 2033 512pepsico 2.5% 2022 171John lewis 6.125% 2025 139

When a stock has both purchases and sales in the reporting period, these transactions have been nettedand the net amount has been reflected as either a net purchase or net sale in the table above.

portfolio composition by credit rating

Rating category % Fund

AAA 9.66AA 53.75A 18.59BBB 12.34non investment grade 0.00unrated 5.66



SummARY RISK INDICATOR

The European union imposed legislation which sets out detailed guidelines for the calculation of therisk ratings of products to be portrayed through a summary risk indicator. It is intended to be a guideto the level of risk of this product compared to other products. It shows how likely it is that theproduct will lose money because of movements in the markets or because the Manager is not able topay you. The risk of the product may be significantly higher than the one represented in the summaryrisk indicator where the product is not held for the recommended holding period (RHp).

The Manager has classified the COIF Charities Fixed Interest Fund as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a medium-low level and poormarket conditions are unlikely to impact the Manager’s capacity to pay you. This classification is notguaranteed and may change over time and may not be a reliable indication of the future risk profileof the Fund. The lowest category does not mean risk free.

The summary risk indicator assumes investment in the Fund for the RHp of three to five years. Theactual risk can vary significantly if you cash in at an early stage and you may get back less.

The Fund should be considered illiquid as it is not admitted to trading on a secondary market and noalternative liquidity facility is promoted by the Manager or a third party. However, investors canrequest redemption at any time and the Fund deals on a weekly basis. The Fund does not include anyprotection from future market performance, so you could lose some or all of your investment.

A more detailed description of risk factors that apply to this product is set out in the latest Schemeparticulars, which is available on CClA’s website or by request.

1 2 3 4 5 6 7

lower risk Higher risk



COmpARATIvE TABlE

Change in net assets per unit Income units Half year to Year to Year to Year to 30.06.2020 31.12.2019 31.12.2018 31.12.2017 pence pence pence pence per unit per unit per unit per unit

Opening net asset value per unit 137.24 133.05 138.29 138.59Return before operating charges* 6.52 9.06 (0.39) 4.56Operating charges (0.22) (0.43) (0.41) (0.42)Return after operating charges* 6.30 8.63 (0.80) 4.14distributions on Income units (2.22) (4.44) (4.44) (4.44)Closing net asset value per unit 141.32 137.24 133.05 138.29

* after direct transaction costs of: – – – –

performanceReturn after charges 4.59% 6.49% (0.58%) 2.99%

Other informationClosing net asset value (£’000) 78,151 78,591 80,630 104,610Closing number of units 55,302,598 57,266,335 60,602,371 75,645,350Operating charges** 0.30% 0.31% 0.31% 0.30%direct transaction costs 0.00% 0.00% 0.00% 0.00%

prices (pence per unit)Highest unit price (offer) 144.07 143.28 138.79 142.87lowest unit price (bid) 132.64 132.99 132.02 135.67

The return after charges has been calculated in accordance with the Statement of Recommendedpractice for uK Authorised Funds’ (SORp) prescribed calculation methodology. This is for financialstatement reporting purposes only and may differ from the Fund’s performance disclosed in theReport of the Investment Manager.

** Operating charges comprise the Manager’s periodic charge and other expenses, including vAT, butbefore taking account of rebates, as these only offset charges incurred within the underlying funds.The percentages above reflect these charges divided by average net assets for the period/year.



COmpARATIvE TABlE

Change in net assets per unit Accumulation units Half year to Year to Year to Year to 30.06.2020 31.12.2019 31.12.2018 31.12.2017 pence pence pence pence per unit per unit per unit per unit

Opening net asset value per unit 911.09 855.39 860.40 835.15Return before operating charges* 43.54 58.47 (2.40) 27.79Operating charges (1.44) (2.77) (2.61) (2.54)Return after operating charges* 42.10 55.70 (5.01) 25.25distributions on Accumulation units (14.16) (28.54) (29.58) (31.22)Retained distributions on Accumulation units 14.16 28.54 29.58 31.22Closing net asset value per unit 953.19 911.09 855.39 860.40

* after direct transaction costs of: – – – –

performanceReturn after charges 4.62% 6.51% (0.58%) 3.02%

Other informationClosing net asset value (£’000) 20,653 20,569 19,200 20,842Closing number of units 2,166,687 2,257,666 2,244,581 2,422,419Operating charges** 0.30% 0.31% 0.31% 0.30%direct transaction costs 0.00% 0.00% 0.00% 0.00%

prices (pence per unit)Highest unit price (offer) 960.61 936.23 866.39 872.05lowest unit price (bid) 880.54 855.05 835.32 817.55

The return after charges has been calculated in accordance with the Statement of Recommendedpractice for uK Authorised Funds’ (SORp) prescribed calculation methodology. This is for financialstatement reporting purposes only and may differ from the Fund’s performance disclosed in theReport of the Investment Manager.

** Operating charges comprise the Manager’s periodic charge and other expenses, including vAT, butbefore taking account of rebates, as these only offset charges incurred within the underlying funds.The percentages above reflect these charges divided by average net assets for the period/year.



pORTFOlIO ANAlYSIS

at 30 June 2020 (unaudited)

portfolio Allocation

By term to maturity

period % Fund0-5 years 39.55-10 years 24.410-15 years 12.6Over 15 years 23.5duration (modified) 10.8Average term to maturity 9.7

Non-Government Bonds 59.17%

Government Bonds 37.27%

Cash and Near Cash 3.56%

The portfolio analysis above differ from the following portfolio statement because prices used here aremid-market rather than bid.



pORTFOlIO STATEmENT


Fair % ofvalue total net

Holding £’000 assets

government Bonds 37.15% (31.12.2019 – 37.61%)uK Treasury 8% 2021 £2,139,000 2,296 2.32uK Treasury 2.25% 2023 £1,811,790 1,945 1.97uK Treasury 2.75% 2024 £1,200,000 1,341 1.36uK Treasury 5% 2025 £6,475,000 8,009 8.11uK Treasury 1.625% 2028 £200,000 226 0.23uK Treasury 6% 2028 £5,638,885 8,430 8.53uK Treasury 0.875% 2029 £500,000 535 0.54uK Treasury 4.25% 2032 £1,500,000 2,198 2.22uK Treasury 4.5% 2034 £1,542,000 2,415 2.44uK Treasury 1.75% 2037 £850,000 1,018 1.03uK Treasury 4.25% 2040 £2,589,375 4,415 4.47uK Treasury 4.5% 2042 £1,374,000 2,495 2.53uK Treasury 3.25% 2044 £884,000 1,388 1.40

Non-government Bonds 58.49% (31.12.2019 – 59.22%)3i Group 6.875% 2023 £351,000 397 0.40Affordable Housing Finance 3.8% 2044 £1,350,000 1,990 2.01Apple 3.05% 2029 £800,000 956 0.97Asciano Finance 5% 2023 £850,000 927 0.94AT&T 4.25% 2043 £330,000 405 0.41Bnp paribas 1.875% 2027 £500,000 502 0.51Brown-Forman 2.6% 2028 £870,000 957 0.97Bupa Finance 2% 2024 £500,000 511 0.52Citigroup 5.15% 2026 £1,000,000 1,204 1.22Community Finance Company 1 5.017% 2034 £700,000 970 0.98Coöperatieve Rabobank 2.25% 2022 £700,000 719 0.73Coöperatieve Rabobank 4% 2022 £100,000 107 0.11Coventry Building Society 1.875% 2023 £1,055,000 1,087 1.10deutsche Bahn Finance 2.75% 2022 £157,000 164 0.17deutsche Bahn Finance 1.875% 2026 £850,000 902 0.91digital Stout Holding 4.75% 2023 £325,000 359 0.36E.On 6.75% 2039 £650,000 1,110 1.12East Japan Railway Company 4.875% 2034 £1,100,000 1,603 1.62Eversholt Funding 5.831% 2020 £1,145,000 1,165 1.18Fidelity International 7.125% 2024 £830,000 984 1.00Friends life Holdings 12% 2021 £672,000 733 0.74Friends life Holdings 8.25% 2022 £100,000 111 0.11General Accident 7.875% preference Shares £1,215,000 1,470 1.49



pORTFOlIO STATEmENT


Fair % ofvalue total net

Holding £’000 assets

GlaxoSmithKline Capital 3.375% 2027 £1,100,000 1,294 1.31GlaxoSmithKline Capital 1.625% 2035 £800,000 816 0.83InterContinental Hotels Group 3.875% 2022 £1,231,000 1,252 1.27KFW 5.55% 2021 £1,000,000 1,051 1.06lloyds Bank 5.125% 2025 £2,118,000 2,547 2.58lvMH Moët Hennessy louis vuitton 1% 2022 £225,000 227 0.23Myriad Capital 4.75% 2043 £1,375,000 2,061 2.09nestlé Finance International 2.25% 2023 £1,780,000 1,890 1.91network Rail Infrastructure Finance 4.625% 2020 £284,000 285 0.29notting Hill Genesis 3.75% 2032 £1,000,000 1,183 1.20Ørsted 2.125% 2027 £1,000,000 1,066 1.08pfizer 2.735% 2043 £908,000 1,101 1.11places for people Treasury 2.875% 2026 £1,430,000 1,511 1.53Op Corporate Bank 2.5% 2022 £800,000 827 0.84prologis 2.25% 2029 £400,000 421 0.43Royal Bank of Scotland 5.125% 2024 £1,793,000 2,079 2.10Santander uK 5.75% 2026 £2,050,000 2,624 2.66Scottish Hydro Electric Transmission 2.25% 2035 £1,000,000 1,074 1.09Scottish Widows 5.5% 2023 £1,060,000 1,148 1.16SGn 3.1% 2036 £1,000,000 1,198 1.21Sovereign Housing Capital 2.375% 2048 £200,000 228 0.23SSE 5.875% 2022 £134,000 148 0.15Svenska Handelsbanken 1.625% 2022 £800,000 815 0.82Swedbank 1.25% 2021 £350,000 352 0.36Swedbank 1.625% 2022 £700,000 716 0.72Thames Water utilities Finance 2.625% 2032 £2,000,000 2,153 2.18The procter & Gamble Company 1.8% 2029 £727,000 793 0.80THFC (Funding no.3) 5.2% 2043 £620,000 991 1.00Transport for london 3.625% 2045 £1,600,000 2,250 2.28Tritax Big Box REIT 2.625% 2026 £1,300,000 1,368 1.38unilever 1.5% 2026 £575,000 607 0.61university of Cambridge 3.75% 2052 £680,000 1,183 1.20verizon Communications 1.875% 2030 £700,000 720 0.73Western power distribution (West Midlands) 3.875% 2024 £425,000 471 0.48INvESTmENT ASSETS 94,494 95.64

NET OTHER ASSETS 4,310 4.36TOTAl NET ASSETS 98,804 100.00

period ended period ended30.06.2020 30.06.2019

£’000 £’000 £ ’000 £’000

Incomenet capital gains 3,487 3,336 Revenue 1,104 1,228

Expenses (152) (156)net revenue before taxation 952 1,072 Taxation – –net revenue after taxation 952 1,072 Total return before distributions 4,439 4,408 distributions (1,554) (1,646)Change in net assets attributable tounitholders from investment activities 2,885 2,762

STATEmENT OF CHANgE IN NET ASSETS ATTRIBuTABlE TO uNITHOlDERS


period ended period ended30.06.2020 30.06.2019

£’000 £’000 £ ’000 £’000

Opening net assets attributable to unitholders 99,160 99,830 Amounts receivable on issue of units 1,105 4,375 Amounts payable on cancellation of units (4,658) (8,068)

(3,553) (3,693)Change in net assets attributable tounitholders from investment activities 2,885 2,762 Retained distributions on Accumulation units 312 305Closing net assets attributable to unitholders 98,804 99,204

The note on page 17 and the distribution tables on page 18 form part of these financial statements.

The above statement shows the comparative closing net assets at 30 June 2019, whereas the openingnet assets for the current accounting period commenced on 1 January 2020.



STATEmENT OF TOTAl RETuRN


30.06.2020 31.12.2019£’000 £’000 £ ’000 £’000

ASSETSFixed assets:

Investments 94,494 96,012 Current assets:

debtors 783 1,320Cash equivalents 2,730 2,313 Cash and bank balances 1,445 187

Total current assets 4,958 3,820Total assets 99,452 99,832

lIABIlITIESCreditors:

Other creditors 34 36distribution payable on Income units 614 636

Total creditors 648 672Total liabilities 648 672Net assets attributable to unitholders 98,804 99,160

The financial statements on pages 15 to 18 have been approved by the Board.

Approved on behalf of the Board n Morecroft, Chairman8 September 2020

The note on page 17 and the distribution tables on page 18 form part of these financial statements.



BAlANCE SHEET


1. Accounting policiesBasis of preparationThe financial statements have been prepared on a going concern basis, in compliance withFRS 102 and in accordance with the Statement of Recommended practice for uK AuthorisedFunds (SORp) issued by The Investment Association in May 2014 (and amended in June 2017),the Charities Act 2011, and in accordance with the Scheme and the Collective InvestmentScheme sourcebook. The financial statements have been prepared under the historical cost basis,as modified by the revaluation of investments.

The Fund is exempt from preparing a statement of cash flows under FRS 102 as substantially allof the Fund’s investments are highly liquid, substantially all of the Fund’s investments are carriedat market value and the Fund provides a statement of change in net assets.

unless otherwise stated, all other accounting policies applied are consistent with those of theannual financial statements for the year ended 31 december 2019 and are described in thosefinancial statements.



NOTE TO THE FINANCIAl STATEmENTS




DISTRIBuTION TABlES


dividends paid/payableperiod ended date paid/payable pence per unit 2020 2019 2020 2019

Income units31 March 29 may 31 May 1.11 1.1130 June 28 August 30 August 1.11 1.11 2.22 2.22

Revenue accumulatedperiod ended pence per unit 2020 2019

Accumulation units31 March 7.41 7.1430 June 6.75 6.75 14.16 13.89

Responsibilities of the BoardThe Board shall comply with the duty of carewhen exercising its powers and discharging itsduties under the Scheme, as follows:

• making and revising the written statementof the investment objectives of the Fundand ensuring that details of such investmentobjectives will be included in theScheme particulars;

• determining the criteria and methods forevaluating the performance of the Fund;

• granting prior written approval to theManager should the Manager wish to enterinto certain types of investment or a specificcourse of borrowing on behalf of the Fund;

• appointing the Auditor of the Fund andagreeing their terms of engagement;

• making an annual report on the discharge ofthe Board’s responsibilities;

• determining the rate of remuneration of theTrustee and the Manager in accordance withthe Scheme and the Scheme particulars;

• applying to the Commission for an order todischarge the Trustee from the provisions ofthe Scheme and an order to appoint a newTrustee of the provisions of the Scheme;

• making representations to the Trustee on thewinding up of the Fund: provided that anyBoard member who has any interests in theTrustee or the Manager shall not participatein the Board’s discussions and decisions onthe matter and shall not be counted in thequorum necessary for the transaction of suchbusiness; and

• informing the Charity Commission promptlyand in writing if the Board is not satisfied atany time as to the compliance of the Trusteeor the Manager with the Scheme or theScheme particulars.

under the Alternative Investment FundManagers directive (“AIFMd”), the Board hascertain additional responsibilities including:

• the duty to inform the Financial ConductAuthority promptly and in writing if theBoard is not satisfied with the compliance ofthe Trustee or the Manager with theapplicable provisions of AIFMd; and

• the direct power (without reference to theCharity Commission) to require the removalof the Manager and/or the Trustee where itconsiders for good and sufficient reason that achange of Manager or Trustee is in theinterests of the participating Charities.



STATEmENT OF BOARD, TRuSTEE, DEpOSITARY AND

mANAgER RESpONSIBIlITIES

Responsibilities of the Trustee The Trustee shall be responsible for those aspectsof the administration and management of theFund and its property which are specified in theScheme. The Trustee shall comply with the dutyof care when exercising its powers anddischarging its duties. The following are theduties and powers of the Trustee:

• the supervision and oversight of the Manager’scompliance with the Scheme and the Schemeparticulars. In particular, the Trustee shall besatisfied that the Manager is competentlyexercising its powers and discharging its dutiesunder the Scheme, and that the Manager ismaintaining adequate and proper records;

• the appointment, supervision and oversight ofany Registrar or other delegate which it hasappointed in accordance with the Scheme;

• the custody and control of the property of theFund and the collection of all income due tothe Fund;

• the creation and cancellation of units asinstructed by the Manager (except wherethe Scheme particulars permit the Trusteeto disregard those instructions);

• making distributions or allocations toparticipating Charities in proportion to theirrespective units in the property of the Fund;

• the making of an annual report on thedischarge of its responsibilities for themanagement of the Fund; and

• winding up the Fund.

The Trustee shall take all steps and executeall documents as are necessary to secure thatinstructions given to it by the Manager arecarried out as to the exercise of rights (includingvoting rights) attaching to the ownership ofproperty of the Fund and that the purchases andsales of investments for or of the Fund areproperly completed.

The Trustee shall maintain such records as arenecessary to enable it to comply with thisScheme and with section 130 of the CharitiesAct and to demonstrate that such compliancehas been achieved.





Responsibilities of the DepositaryThe depositary must ensure that the Fund ismanaged in accordance with the FinancialConduct Authority’s Investment FundsSourcebook, (“the Sourcebook”), the AlternativeInvestment Fund Managers directive (“AIFMd”)(together “the Regulations”) and the Fund’sScheme particulars.

The depositary must in the context of its role acthonestly, fairly, professionally, independently andin the interests of the Fund and its investors.

The depositary is responsible for the safekeepingof the assets of the Fund in accordance withthe Regulations.

The depositary must ensure that:

• the Fund’s cash flows are properly monitored andthat cash of the Fund is booked into the cashaccounts in accordance with the Regulations;

• the sale, issue, repurchase, redemption andcancellation of units are carried out inaccordance with the Regulations;

• the assets under management and the net assetvalue per unit of the Fund are calculated inaccordance with the Regulations;

• any consideration relating to transactionsin the Fund’s assets is remitted to the Fundwithin the usual time limits;

• that the Fund’s income is applied in accordancewith the Regulations; and

• the instructions of the Alternative InvestmentFund Manager (“the AIFM”) are carried out(unless they conflict with the Regulations).

The depositary also has a duty to takereasonable care to ensure that the Fund ismanaged in accordance with the Schemeparticulars in relation to the investment andborrowing powers applicable to the Fund.





Responsibilities of the managerThe Manager shall be responsible for those aspectsof the administration and management of theFund and its property which are specified in theScheme. The Manager shall comply with the dutyof care when exercising its powers and dischargingits duties under this Scheme. The following arethe duties and powers of the Manager:

• instructing the Trustee with respect to thecreation and cancellation of units;

• managing the investments of the Fund inconformity with the investment objectivesmade by the Board;

• ensuring that regular valuations of theproperty of the Fund are carried out and toensure that the units are correctly priced;

• the creation and revision of theScheme particulars;

• maintenance of a daily record of unitspurchased or sold on behalf of the Trustee;

• the creation of all records in respect of theFund, available for inspection by the Trustee;

• the preparation of reports and accounts inrespect of every accounting period; and

• the supervision and oversight of anyappointed delegate.

The Manager of the Fund is required by theScheme to:

• prepare and submit to the Commission astatement of accounts and annual reportcomplying with the requirements of theCharities Act 2011 and the Charities(Accounts and Reports) Regulations 2008, asamended or replaced from time to time; and

• prepare and submit to the Commission a half-yearly report and accounts for the Fund madeup to the date of the interim balance sheet.

The Manager is required to:

• select suitable accounting policies that areappropriate for the Fund and apply them ona consistent basis;

• comply with the disclosure requirements ofthe Statement of Recommended practicerelating to Authorised Funds issued by TheInvestment Association in May 2014 (andamended in June 2017);

• follow generally accepted accountingprinciples and applicable accounting standards;

• keep proper accounting records which enablethe Manager to demonstrate that the FinancialStatements as prepared comply with theabove requirements;





• make judgments and estimates that arereasonable and prudent; and

• prepare the Financial Statements on the basisthat the Fund will continue in operationunless it is inappropriate to presume this.

The Trustee has appointed the Manager to act asRegistrar to the Fund.

under AIFMd, the Manager has certainadditional responsibilities including, ensuringcompliance with the applicable provisions ofAIFMd and that any delegation by the Manageris in accordance with AIFMd.

Should the Manager wish to retire, the Managercan only be discharged from its duties under theScheme following the appointment of areplacement Manager who is eligible underAIFMd to act as Manager of the Fund.







(Charity Registration No. 803610)

Boardn Morecroft, ASIp (Chairman)K Corrigan, FCCAJ Hobart, MAG newson, MRICSS niven, CFAC Ong, MBAA Watson, CBE

SecretaryJ Fox

manager and Alternative Investment Fundmanager (AIFm)CClA Fund Managers limited

Investment manager and RegistrarCClA Investment Management limitedBoth CCLA Fund Managers Limited and CCLA InvestmentManagement Limited are authorised and regulated by theFinancial Conduct AuthoritySenator House, 85 Queen victoria StreetlondonEC4v 4ETTelephone: 0207 489 6000Client Service:Freephone: 0800 022 3505Email: [email protected]

AdministratorHSBC Bank plc8 Canada SquareCanary WharflondonE14 5HQAuthorised and regulated by the Financial Conduct Authority

Executive Directors of the managerp Hugh Smith (Chief Executive Officer)J Bevan (Chief Investment Officer)

E Sheldon (Chief Operating Officer)A Robinson, MBE (director Market development)

Non-Executive Directors of the managerR Horlick (Chair)J Jesty - appointed 24 April 2020C JohnsonG newsonA Roughead - appointed 24 April 2020J Tattersall - retired 8 July 2020

Fund ManagerJ Bevan

Company SecretaryJ Fox

Head of RiskR plumridge – resigned 31 January 2020Jp lim – appointed 1 May 2020

Head of Ethical and Responsible InvestmentJ Corah

Third party AdvisorsCustodian, Trustee and DepositaryHSBC Bank plc8 Canada SquareCanary WharflondonE14 5HQ

BankerHSBC Bank plc60 Queen victoria StreetlondonEC4n 4TR

SolicitorFarrer & Co llp66 lincoln’s Inn FieldslondonWC2A 3lH

Independent AuditorpricewaterhouseCoopers llp7 More london RiversidelondonSE1 2RT

DIRECTORY

CClA is the trading name for CClA Investment Management limited (Registered in England and Wales no. 2183088)and CClA Fund Managers limited (Registered in England and Wales no. 8735639).

Both companies are authorised and regulated by the Financial Conduct Authority. Registered address: Senator House, 85 Queen victoria Street, london EC4v 4ET.

printed on 100% post consumer waste and is certified by the Forest Stewardship Council (FSC).

CClA Fund managers limited

Senator House, 85 Queen victoria Street, london EC4v 4ETT: 0800 022 3505 E: [email protected]

www.ccla.co.uk

Founded in 1958, CClA is one of the uK’s largest charity fund managers.Managing investments for charities, religious organisations

and the public sector is all that we do.

Our purpose is to help our clients maximise their impact on society by harnessing the powerof investment markets. This requires us to provide a supportive and stable environment forour staff and deliver trusted, responsibly managed and strongly performing products and

services to all organisations, irrespective of their size.

ABOuT CClA

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