Investment policy

This is the policy for investments by Leamington and Warwick Musical Society (LWMS). We will consider investing in stocks, bonds, property, and other investment vehicles that align with our charitable purpose when and if it seem prudent to do so.

Our investment objectives are to achieve growth and income. We aim to generate sustainable returns that allow us to achieve our charitable objectives while protecting the capital value of our investments.

Risk appetite

We recognize that every investment carries risk, and we will manage these risks to ensure that they are commensurate with our objectives and the financial resources available. Our charity's risk appetite is moderate, and we are willing to accept fluctuations in the value of our assets in pursuit of our investment objectives.

Balancing risk and return

We will balance risk and return to achieve our investment objectives. We will seek to achieve our investment goals through a mix of low-risk and high-risk investments to achieve a diversified portfolio of investments that suit our needs.

Amount available

We will invest our financial resources in line with our objectives, risk appetite, and investment policy. The amount we have available for investment will be reviewed annually, and we will adjust our investment strategy as necessary to ensure that we continue to meet our objectives.

Time horizon

Our investment time horizon is long-term, and we aim to invest in funds for the long term. We recognize that investing is a long-term activity that requires a disciplined approach to generate sustainable returns.

Liquidity needs

We will ensure that we have sufficient liquidity to meet our financial commitments, including grants and other charitable activities. We will invest in liquid assets and maintain an appropriate level of cash reserves to ensure that we can access our money when we need it.

Types of investments

We will consider investing in ethical assets that align with our charitable mission. We will avoid investing in assets that go against our charity's aims.

Decision-makers

The Trustees are responsible for making investment decisions, including approving the investment policy, setting investment objectives, and selecting any agents to act as investment managers.

Key Performance Indicators

We will measure the performance of our investments based on the total return, risk-adjusted return, and other appropriate benchmarks. We will review our performance regularly and adjust our investment strategy as necessary.

Reporting requirements

We will communicate investment performance to our stakeholders annually, including donors, beneficiaries, and the Charity Commission.

Responsibility and remit of the investment manager

If we engage an investment manager, they will be responsible for implementing our investment strategy, making investment decisions on our behalf, and reporting on investment performance.

Investment manager's principles

Our investment manager must follow our investment policy and adhere to our ethical standards. They must act in our best interests and manage our investments prudently.

Responsibility of the Trustees

The Trustees have a legal obligation to secure the best financial return within the appropriate level of risk to be spent on the charity's aims. They must take advice as appropriate, select the right investments, and communicate their decisions to stakeholders.

This policy was reviewed by the LWMS committee on 4 November 2024, and will be further reviewed at least every 2 years.