Helping people find their lives again - RNIB

The funds in which these investments are made are measured against agreed
benchmark indices for each relevant holding. In relation to the performance of
the UK equities, the majority are invested within the Ethical Fund but with few
such funds existing it is difficult to establish a suitable benchmark.
Investment Committee has reviewed the market performance and is satisfied with
the Investment Manager’s performance and reaffirm that passive management of
RNIB’s investments and the current asset allocation strategy are appropriate.
In addition to managed investments, Endowment Funds continue to be invested
with CAF in their Balanced Growth and Income Funds, and short term cash
holdings are invested in short term deposit accounts with the Royal Bank of
Scotland.
Reserves policy
RNIB’s Reserves policy focuses on the level of “free reserves”. RNIB’s free
reserves exclude restricted funds and designated funds, which include the net
book value of land and buildings occupied by RNIB services and activities. The
assessment of free reserves excludes any surplus or deficit reported on the
pension scheme.
RNIB seeks to maintain free reserves to manage the risks to which the charity is
exposed in the course of its business, including but not limited to safeguarding
against volatile voluntary income.
The Trustees consider that in order to meet these needs, and to operate
effectively, RNIB needs reserves equivalent to between 12 and 17 weeks of its
operating costs. This equates to between £20million and £28.5million. RNIB’s
free reserves were £21.8million at 31 March 2009 (2008: £22.6million),
representing the balance on general funds of £17.8million (2008: £21million)
and after allowing for fixed assets funded by finance leases of £0.75million
(2008: £1.6million) and a revolving loan of £3.2million regarding the Vision
School and Children’s Home redevelopment project.
The actuarial valuation of RNIB’s pension scheme at 31 March 2009 for the
purposes of FRS17 showed a deficit of £8.1million (2007/08 a surplus of
£17.9million), which is set against the level of free reserves. The corresponding
24 RNIB annual report and accounts 2008/09
Performance against
Benchmark
Asset Allocation Tolerance (+/-) Fund’s Benchmark
Index 2008/09
UK equities 25% 2.50% -7.53%
Overseas equities 15% 1.50% 0.67%
UK Gilt Stocks 60% 3.00% 0.07%
100%