COIF Charity Funds - CCLA

COIF Charity FundsStructure of the FundsStructure and ManagementCOIF Charities Investment Fund and COIFCharities Fixed Interest Fund were set up in 1962and 1990 respectively, as Common InvestmentFunds under the Charities Act 1960. Schemesdated 29 November 2000 were adopted witheffect from 1 January 2001, which replaced theprevious Charity Commission Schemes dated 28June 1995. Both Schemes were made undersection 24 of the Charities Act 1993.COIF Charities Deposit Fund, originating fromthe Charities Deposit Fund formed in 1985, isa Common Deposit Fund established undersection 25 of the Charities Act 1993 in a CharityCommissioners Scheme dated 27 June 1995.COIF Charities Property Fund was established asa Common Investment Fund by a CharityCommission Scheme dated 12 July 2002 undersection 24 of the Charities Act 1993. The Fundwas launched on 29 August 2002. The report andaccounts for the COIF Charities Property Fundare available in a separate Fund report.COIF Charities Investment Fund owns 25%of the share capital of CCLA InvestmentManagement Limited (CCLA), a proportion ofwhich are non-voting shares.The Financial Services Authority (FSA) Rulesfor the operation of Unregulated CollectiveInvestment Schemes apply to CCLA’smanagement of COIF Charities Investment Fundand COIF Charities Fixed Interest Fund.CCLA has been appointed Manager by COIFCharities Investment Fund and COIF CharitiesFixed Interest Fund Schemes.Both COIF Charities Investment Fund and COIFCharities Fixed Interest Fund have a Board whichmeets four times per annum to receive reportsand monitor the progress of the Funds. TheBoard, created under each Scheme, is made upof individuals appointed under the Schemes.Together these individuals have wide experienceof finance, investments, charities and the law. NoBoard member is required to be authorised bythe FSA because no Board member carries outregulated activities in relation to the COIF Funds.The Board is responsible for setting andsubsequently advising on the investment policy ofthe Funds, monitoring performance, obtainingCharity Commission orders for the appointmentand discharge of the Manager and CorporateTrustee, appointing the Auditors to the Funds andagreeing the fees charged by the CorporateTrustee, the Manager and the Auditors.The Corporate Trustee, HSBC Bank plc,appointed under the Schemes for COIF CharitiesInvestment Fund and COIF Charities FixedInterest Fund, is responsible for the supervisionand oversight of the Manager’s compliance withthe respective Schemes and Scheme Particulars,and also for the custody and safekeeping of theproperty of the Funds. It is also responsible forthe appointment and supervision of the Registrarof the COIF Funds. The division betweenmanagement and trustee functions provides anadditional layer of protection for unitholders.The Trustees for COIF Charities Deposit Fund arethe same individuals that comprise the Board forCOIF Charities Investment Fund and COIFCharities Fixed Interest Fund. The Trustees act asan independent body to control and superviseCOIF Charities Deposit Fund, for the benefit ofparticipating charities, meeting four times perannum and also holding two Audit Committeeseach year. The Trustees of COIF Charities DepositFund have delegated to CCLA the managementand administration of the Fund.Deposits taken by COIF Charities Deposit Fundare exempted from the Financial Services andMarkets Act 2000 (FSMA) by virtue of theFinancial Services and Markets Act (Exemption)Order 2001. Deposits in COIF Charities DepositFund are not covered by the Financial ServicesCompensation Scheme. CCLA will pay faircompensation on eligible claims arising from itsnegligence or error in the management andadministration of the COIF Charities DepositFund.1