Trust Funds - Investment Strategy

North Ayrshire Council · 18 December 2024
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NORTH AYRSHIRE COUNCIL
18 December 2024
North Ayrshire Council
Title: North Ayrshire Council Trust Funds - Investment Strategy
2024/25
Purpose: To seek approval of the Investment Strategy used to manage
the external investments of North Ayrshire Council’s Charitable
Trusts for 2024/25.
Recommendation: That Council approves the North Ayrshire Council Trust Funds
Investment Strategy 2024/25.
1. Executive Summary
1.1 The elected members of North Ayrshire Council act as trustees for eight Charitable
Trusts which disburse grants to individuals and groups in support of the general
purpose of the prevention or relief of poverty by reason of age, ill-health, disability,
financial hardship or other disadvantage.
1.2 The Charitable Trusts are composed of bequests made many years ago, some of
which include investments designed to generate income to support the disbursement
of grants.
1.3 The proposed Investment Strategy 2024/25, attached at appendix 1, has been
developed to govern the management of these investment, ensure that all decision
have due regard for the suitability to the Trust of the investments and are in
compliance with the requirements of the Trusts and Succession (Scotland) Act 2024.
1.4 An assessment of the suitability and performance of all investments will be reported to
Council within the Trustees’ Annual Report and Financial Statements after the end of
each financial year.
2. Background
2.1 The Council administers a number of Charitable Trusts which are largely composed of
bequests made many years ago. These Trusts include three specific bequests, four
Town Trusts and the North Ayrshire Council Trust, which incorporates a number of
smaller trusts and funds, including the Spiers Trust:

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Charity
Number
Charity Name Objectives
SC042136 Anderson Park Trust Provision of recreational facilities or the
organisation of recreational activities in
the Burgh of Largs.
SC042101 Douglas Sellers Trust Maintenance, improvement and
advancement of recreational facilities
within the Burgh of Irvine; Maintenance,
improvement and floral decoration of
open spaces within the Burgh of Irvine.
SC042117 Margaret Archibald Bequest Relief of those in need who are aged 65
and over and who reside in the Parish
of Dalry.
SC043644 North Ayrshire Council
(Dalry) Charitable Trust
Prevention or relief of poverty;
Provision of recreational facilities or the
organisation of recreational activities;
Relief of those in need by reason of
age, ill health, disability, financial
hardship or other disadvantage.
SC043600 North Ayrshire Council
(Kilbirnie & Glengarnock)
Charitable Trust)
Prevention or relief of poverty;
Provision of recreational facilities or the
organisation of recreational activities;
Relief of those in need by reason of
age, ill health, disability, financial
hardship or other disadvantage.
SC043374 North Ayrshire Council
(Kilwinning) Charitable Trust
Prevention or relief of poverty;
Provision of recreational facilities or the
organisation of recreational activities;
Relief of those in need by reason of
age, ill health, disability, financial
hardship or other disadvantage.
SC043494 North Ayrshire Council
(Largs) Charitable Trust
Prevention or relief of poverty;
Provision of recreational facilities or the
organisation of recreational activities;
Relief of those in need by reason of
age, ill health, disability, financial
hardship or other disadvantage.
SC025083 North Ayrshire Council
Charitable Trust
Encouragement and promotion of
education among students, including
bursaries and prizes awarded;
Provision of recreational facilities or
organisation of recreational activities;
Upkeep of war memorials. This
includes the Spier’s Trust for the
administration of Spier's School, Beith
and for the provision of certain
educational grants and bursaries with
the local area of benefit, comprising the
parishes of Beith, Dalry, Dunlop,
Kilbirnie, Lochwinnoch and Neilston.

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2.2 The Trustees of the Charitable Trusts are the elected members of North Ayrshire
Council and are appointed through their election to the Council. Decisions regarding
the management of the Trusts have been delegated by the Council to the relevant
Locality Partnerships, with the Head of Finance being the designated officer with
responsibility for the proper administration of the Charitable Trusts’ financial affairs. 
2.3 The Trusts make annual disbursements of grants to groups and individuals in
pursuance of the objectives of each Trust. The level of funding available for these
grants is normally set at the net annual income of Trust after meeting their
expenditure commitments. 
2.4 The capital reserves for each Trust are held and invested by North Ayrshire Council
with any revenue income generated available for disbursement as grants or, if not
disbursed during the financial year, residual balances are invested in North Ayrshire
Council’s Loans Fund. 
2.5 In addition, two of the Trusts hold specific investments from which additional dividend
income is received:
Margaret Archibald Bequest Nominal Value
(£)
Market Value at 31/3/24
(£)
GlaxoSmithKline plc 1,183.00 80,851
Marks & Spencer plc 400.00 3,910 
Diageo plc 400.40 41,835
Barclays plc 336.00 2,460
Royal Dutch Shell plc 562.50 16,958
Unilever plc 37.00 47,905
British American Tobacco plc 300.00 28,872
Total N/A 222,790 
North Ayrshire Council
Charitable Trust
Nominal Value 
(£)
Market Value at 31/3/24
(£)
JPM UK Higher Income Fund 1,789.50 7,516
Merchants Trust 406.25 8,645
Alliance Trust 72.50 35,572
Zeneca Group plc 67.50 28,831
Diageo 217.00 22,673
Total N/A 103,236

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2.6 In accordance with advice issued by OSCR, the Scottish Charity Regulator, and in
compliance with the requirements of the Trusts and Succession (Scotland) Act 2024,
it is recommended that the Trustees adopt an Investment Strategy which sets out the
objectives of all investments and ensures that all decision have due regard for the
suitability to the Trust of the investment.
2.7 The attached Investment Strategy 2024/25 sets out the principles which support the
Trusts’ values while limiting any impact on financial risks and returns. These principles
will ensure that all investments are made on a socially responsible basis with
appropriate regard for Environmental, Social and Governance (ESG) issues through
the exclusion of investment in any businesses whose activities and practices pose a
risk of serious harm to individuals or groups, or whose activities are inconsistent with
the Council’s values.
2.8 Following adoption, the full details of the Investment Strategy will be published on the
Council website with the assessment and performance of all investments being
reported to Council within the Trustees’ Annual Report and Financial Statements after
the end of each financial year.
3. Proposals
3.1 It is proposed that Council approves the North Ayrshire Council Trust Funds
Investment Strategy 2024/25.
4. Implications/Socio-economic Duty
Financial
4.1 The financial implications are as outlined in the report.
Human Resources
4.2 None.
Legal
4.3 Under the Trusts and Succession (Scotland) Act 2024, Trustees have a duty to review
all investment decisions to ensure that due regard has been given to the suitability of
the investment taking account of proper advice. This includes the power to take
account of non-financial considerations such as ethical, social or environmental
factors.
Equality/Socio-economic
4.4 The Trust investments managed in accordance with this policy will generate income to
be used in the disbursement of grants to individuals and groups in support of the
general purpose of the prevention or relief of poverty by reason of age, ill-health,
disability, financial hardship or other disadvantage.

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Climate Change and Carbon 
4.5 The Strategy seeks to ensure that all investments held on behalf of the Trusts are
consistent with the Council’s values and will exclude investment in counterparties
which have significant involvement in activities which contribute to carbon intensive
industries. 
Key Priorities 
4.6 This report and the Investment Strategy directly support the Council Plan 2023 to
2028 through the embedding of Environmental, Social and Governance
considerations in all investment decisions, by maximising financial flexibility to support
the delivery of our priorities and developing strong relationships with communities and
providing support for community organisations in achieving their goals. 
Community Wealth Building 
4.7 None. 
5. Consultation 
5.1 Officers from Legal Services and the Council’s Treasury advisors, Arlingclose, were
consulted during the development of this Strategy. 
Mark Boyd
Head of Service (Finance) 
For further information please contact David Forbes, Senior Manager (Strategic
Business Partner), on 01294 324551 or DavidForbes@north-ayrshire.gov.uk. 
Background Papers
North Ayrshire Council Charitable Trusts: Unaudited Trustees’ Annual Report 2023/24 –
Council, 26 June 2024

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1 | P a g e
North Ayrshire Council Trust Funds 
Investment Strategy 2024/25

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2 | P a g e
1. Purpose 3  
2. Aim 3  
3. Structure and Governance 3  
4. Objectives and Activities 5  
5. Time Horizon 6  
6. Management of Funds 6  
7. Minimum Investment Objective 7  
8. Disbursements 7  
9. Investment Principles 7    
The United Nations Global Compact 8    
Exclusions 8  
10. Liquidity Profile 9  
11. Risk Management 9  
12. Foreign Currency 9  
13. Investment Portfolio 10  
14. Current Portfolio Position 10  
15. Performance 10  
16. Monitoring 11  
17. Review 11

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3 | P a g e
1 Purpose
The purpose of this strategy is to formalise the responsibilities of the Trustees in
respect of the management of the Charitable Trusts’ assets held by North Ayrshire
Council and to translate these responsibilities into an investment strategy which
complies with the Trusts and Succession (Scotland) Act 2024 and incorporates best
established practice by:
• Ensuring that, when investing Charitable Trusts’ assets, Trustees achieve an
appropriate balance for the Trust between the two objectives of:
o Providing an income to help the Trust carry out its purposes effectively in the
short term; and 
o Maintaining and, if possible, enhancing the value of the invested funds, to
enable the Trust to effectively carry out its purposes in the longer term. 
• Ensuring that the following requirements, as defined in the Trusts and
Succession (Scotland) Act 2024, are followed whether they are using the
investment powers in the Act or not:
o The trustees shall have regard to the suitability to the Trust of the proposed
investment, 
o The trustees shall have regard to the need for diversification of investments
of the Trust, in so far as is appropriate to the circumstances of the Trust, and
o The trustees take account of ethical, social and environmental consideration
in determining which investment to make.
This strategy meets these requirements fully and applies to all staff, trustees and
those who are involved in planning or authorising investment of Charitable Trusts’
assets. 
2 Aim 
The aim is to use the investments of Charitable Trusts’ assets to support the Trust’s
values and the aims of prevention or relief of poverty by reason of age, ill-health,
disability, financial hardship or other disadvantage.
To this end, the strategy sets out investment principles which support this mission
subject to there being no significant impact upon financial risk and returns. 
3 Structure and Governance
There are 8 Charitable Trusts currently registered with the Office of Scottish Charity
Regulator (OSCR). 
The governing documents are:

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4 | P a g e
Charity
Number
Charity Name Governing Document Dated
SC042136 Anderson Park Trust Trust Disposition and
Settlement
8 July 1960
SC042101 Douglas Sellers Trust Trust Disposition and
Settlement
21 January
1955
SC042117 Margaret Archibald
Bequest
Trust Deed 22 July 1992
SC025083 North Ayrshire
Council Charitable
Trust
No overall governing
documents.    
N/A
SC025083 North Ayrshire
Council Charitable
Trust
Spier’s Trust: Trust
Scheme
1978
SC025083 North Ayrshire
Council Charitable
Trust
North Ayrshire
Museum: Scheme of
Administration
1958
SC025083 North Ayrshire
Council Charitable
Trust
North Ayrshire
Museum: Minute of
Agreement    
1974 
SC043644 North Ayrshire
Council (Dalry)
Charitable Trust
Trust Deed 26 November
2012
SC043600 North Ayrshire
Council (Kilbirnie &
Glengarnock)
Charitable Trust
Trust Deed 23 October
2012
SC043374 North Ayrshire
Council (Kilwinning)
Charitable Trust
Trust Deed 20 July 2012
SC043494 North Ayrshire
Council (Largs)
Charitable Trust
Trust Deed 7 September
2012 
When considering any action in connection with the Charitable Trusts, the Trustees,
and their agents, must act in the interest of the Charitable Trust.
The Trustees of the Charitable Trusts are the elected members of North Ayrshire
Council and appointment is by virtue of election to the Council. There is no
recruitment process.

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5 | P a g e
The Head of Finance is the designated officer within North Ayrshire Council with
responsibility for the proper administration of the Charitable Trusts’ financial affairs. 
The Head of Finance is responsible for keeping proper accounting records that are
up to date and which ensure that financial statements comply with the Charities
Accounts (Scotland) Regulations 2006.
Contact Address
North Ayrshire Council Finance
Cunninghame House
Irvine
KA12 8EE
Auditor
Audit Scotland
4th Floor, South Suite
The Athenaeum Building
8 Nelson Mandela Place
Glasgow
G2 1BT 
4 Objectives and Activities
The Charitable Trusts were originally established for a variety of purposes related to
the general purpose of the prevention or relief of poverty by reason of age, ill-health,
disability, financial hardship or other disadvantage. 
Income received is expended on grant awards and, where necessary, supplemented
by revenue reserves.
Charity
Number
Charity Name Objectives
SC042136 Anderson Park Trust Provision of recreational facilities or the
organisation of recreational activities in
the Burgh of Largs.
SC042101 Douglas Sellers Trust Maintenance, improvement and
advancement of recreational facilities
within the Burgh of Irvine; Maintenance,
improvement and floral decoration of open
spaces within the Burgh of Irvine.
SC042117 Margaret Archibald
Bequest
Relief of those in need who are aged 65
and over and who reside in the Parish of
Dalry.

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6 | P a g e
Charity
Number
Charity Name Objectives
SC025083 North Ayrshire Council
Charitable Trust
Encouragement and promotion of
education among students, including
bursaries and prizes awarded; Provision
of recreational facilities or organisation of
recreational activities; Upkeep of war
memorials. 
SC043644 North Ayrshire Council
(Dalry) Charitable Trust
Prevention or relief of poverty; Provision
of recreational facilities or the organisation
of recreational activities; Relief of those in
need by reason of age, ill health,
disability, financial hardship or other
disadvantage.
SC043600 North Ayrshire Council
(Kilbirnie &
Glengarnock) Charitable
Trust)
Prevention or relief of poverty; Provision
of recreational facilities or the organisation
of recreational activities; Relief of those in
need by reason of age, ill health,
disability, financial hardship or other
disadvantage.
SC043374 North Ayrshire Council
(Kilwinning) Charitable
Trust
Prevention or relief of poverty; Provision
of recreational facilities or the organisation
of recreational activities; Relief of those in
need by reason of age, ill health,
disability, financial hardship or other
disadvantage.
SC043494 North Ayrshire Council
(Largs) Charitable Trust
Prevention or relief of poverty; Provision
of recreational facilities or the organisation
of recreational activities; Relief of those in
need by reason of age, ill health,
disability, financial hardship or other
disadvantage. 
5 Time Horizon
The time horizon for the investment portfolio is considered to be long term. In
investment terms, this is defined as being over ten years. 
6 Management of Funds
The Trustees rely on the expertise of finance staff within North Ayrshire Council to
advise on investments to ensure the maximum return and the least risk to the Trusts.
In this way, the income stream for the long-term future benefit of the Trusts is
protected. 
The funds of the Charities are deposited with North Ayrshire Council, although do not
represent assets available to the Council, or invested in stocks and shares in a
variety of companies.

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7 | P a g e
Decisions regarding the management of the Trusts have been delegated by the
Council to the relevant Locality Partnership. 
7 Minimum Investment Objective
The minimum investment objective is to preserve the capital and income in the
investment portfolio in real terms after inflation and distributions. The measure of
inflation is the Consumer Price Index. 
8 Disbursement
The Charitable Trusts promote their activities and consider applications submitted by
individuals and groups who meet the criteria. North Ayrshire Council works within our
communities to raise awareness of the financial support available from the
Charitable Trusts and encourage appropriate applications from community groups
and individuals. 
Where any Trusts have been identified as low value or dormant, North Ayrshire
Council will continue to identify options for utilising Trust balances, and these will be
presented to Trustees when available. 
Reserves are held by North Ayrshire Council on behalf of the Trusts and revenue
income generated from capital which has not been disbursed at 31 March each year
is invested in North Ayrshire Council’s Loans Fund. 
9 Investment Principles
North Ayrshire Council is committed to investing funds on a socially responsible
basis. The Council believes that to accord with its values when investing funds,
regards must be made to Environmental, Social and Governance (ESG) issues. 
Environmental, Social and Governance (ESG) considerations are increasingly a
factor in global investors’ decision making, but the framework for evaluating
investment opportunities is still developing. As a result, the Council’s ESG policy
does not currently include ESG scoring or other real-time ESG criteria at an
individual investment level. 
When investing in banks and funds, the Council will prioritise banks that are
signatories to the UN Principles for Responsible Banking and funds operated by
managers that are signatories to the UN Principles for Responsible Investment, the
Net Zero Asset Managers Alliance and/or the UK Stewardship Code. 
A list of ESG Initiative signatories is updated quarterly by the Council’s treasury
advisor, Arlingclose, to support the Council’s decision-making process for investing.

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8 | P a g e
The United Nations Global Compact
The Council supports the ten principles of the United Nations Global Compact, which
accepts that, as with the Council itself, corporate sustainability starts with a value
system and a principles-based approach to doing business. This means operating in
ways that, at a minimum, meet fundamental responsibilities in the areas of human
rights, labour, environmental and anti-corruption.
Human Rights
Principle 1:   Businesses should support and respect the protection of internationally
proclaimed human rights; and
Principle 2:  Make sure that they are not complicit in human rights abuses.
Labour
Principle 3:   Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining:
Principle 4:   The elimination of all forms of forced and compulsory labour;
Principle 5:   The effective abolition of child labour; and
Principle 6:   The elimination of discrimination in respect of employment and
occupation.
Environment
Principle 7:  Businesses should support a precautionary approach to environmental
challenges;
Principle 8:  Undertake initiatives to promote greater environmental responsibility;
and
Principle 9:  Encourage the development and diffusion of environmentally friendly
technologies.
Anti-Corruption
Principle 10:  Businesses should work against corruption in all its forms, including
extortion and bribery.
In managing investments, North Ayrshire Council encourages good behaviour and
discourages poor behaviour through the screening of investments using the
principles above. In doing so, the Council will promote sustainability, good business
ethics, good employment practices and the transition to a low carbon economy. 
Exclusions
The Council will not knowingly invest directly in businesses whose activities and
practices pose a risk of serious harm to individuals or groups, or whose activities are
inconsistent with the Council’s values.

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9 | P a g e
The Council will exclude investments from consideration where there are consistent
or significant transgressions of the appropriate regulatory framework or a failure to
ignore directions of the regulatory body and investments in counterparties which
have significant involvement with any of the activities or business practices on the
following exclusions list:
Human Rights and Labour
• Breaches of human rights principles
• Breaches of international labour standards
• Supports/are part of oppressive regimes
• Modern slavery
• Poor Health and Safety records 
Environment
• Toxic spills and releases
• Negative impact on land use, habitats and biodiversity
• Contributes to carbon intensive industries
• Causes water resource scarcity
• Poor supply chain management
• Animal testing for cosmetic purposes/unnecessary exploitation of animals 
Governance
• Bribery/ fraud/ corruption
• Violation of international intellectual property rights
• Unethical market behaviour and business practices 
10 Liquidity Profile
The portfolio has a long-term time horizon. However, sufficient investments in the
portfolio should be easily realisable, so that there is sufficient liquidity to meet any
obligations and disbursements. 
11 Risk Management
North Ayrshire Council’s objective when investing money on behalf of the Charitable
Trusts is to strike an appropriate balance between risk and return, minimising the risk
of incurring losses from defaults and the risk of receiving unsuitably low investment
income. 
12 Foreign Currency
North Ayrshire Council does not, on a day-to-day basis, have foreign currency
transactions or receipts. Unexpected receipt of foreign currency will be converted to
Sterling at the earliest opportunity.

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10 | P a g e
If North Ayrshire Council has a contractual obligation to make a payment in a
currency other than Sterling then forward foreign exchange transactions will be
considered, with professional advice. 
At the present time statute prevents North Ayrshire Council borrowing in currencies
other than Sterling. North Ayrshire Council has also determined that all its
investments, including those for Charities and Trusts, will be in Sterling.   
13 Investment Portfolio
To achieve the desired return without taking excessive risk, the investments are
allocated across a range of asset classes. 
This includes stocks, fixed assets and investment with North Ayrshire Council.
Asset Class at 31 March 2024 Total
£
Asset Allocation
Fixed Assets 110,000 17%
Investments 326,026 51%
Cash invested with NAC on
behalf of the Trusts 203,989 32%
Total 640,015 100% 
14 Current Portfolio Position 
Balance
Sheet at 31
March 2024
North
Ayrshire
Charitable
Trust
£
Town
Trusts 
£
Douglas
Sellers
Trust 
£
Anderson
Park
Trust 
£
Margaret
Archibald
Bequest 
£
Total 
£
Fixed Assets 110,000 0 0 0 0 110,000
Investments 103,236 0 0 0 222,790 326,026
Cash invested
with NAC on
behalf of the
Trusts
96,590 44,861 162 22 62,354 203,989
Total 309,826 44,861 162 22 288,542 640,015 
15 Performance
North Ayrshire Council will monitor the performance of the investment portfolio
against the Bank Rate Forecast on a quarterly basis.
Investment decisions will be subject to review on a quarterly basis in response to
changes in environmental and social circumstances.

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11 | P a g e
Annual performance updates are received for the investment funds the Charitable
Trusts’ funds are currently invested in and such performance will be reported
annually within the Trustees’ Annual Report and Financial Statements published by
North Ayrshire Council. 
16 Monitoring
In order to implement and monitor adherence to this strategy North Ayrshire Council
will:
• publish this investment strategy on its website following its approval by Council;
• apply this strategy at the point of investment;
• monitor investments thereafter, to review the operation and the effectiveness of
the strategy; and
• report progress annually, including any breaches, within the Trustees’ Annual
Report and Financial Statements. 
17 Review
The Trustees’ Annual Report and Financial Statements will be reported to Council as
soon as practicable after the financial year end, and in all cases, before the end of
September.
An administrative review of this policy will be undertaken annually and a full review
by Trustees will be carried out every 3 years. 
Date Published
Version