To all Hon. PCC Treasurers,

Diocese of PortsmouthJuly 2009

Dear Honorary Treasurers,

First, to those who have not yet met me, may I introduce myself as your new part-time Parish Finance Adviser.

I shall do my best to follow in Mary Makin’s illustrious footsteps and to be of service in providing help, advice and support to you.

I am just in the process of fully retiring from the Civil Service in London, having partially retired in June 2008, live in Gosport and am a local magistrate, sitting in Portsmouth. I trained locally as an Articled Clerk with Morris, Crocker (yes, many years ago….) and continue to bear the cost of three Institute subscriptions each year, namely as an FCA, FCMA and FCIS.

Thanks to many of you for sending in your 2008 Accounts (including the Annual Report and Independent Examiner’s Certificate) however some do remain outstanding and it would be really helpful if these could now be sent in as soon as possible.

The Finance Return for the central statistics should be sent to Jane Dobbs with a copy to your deanery finance chairman, and again some remain outstanding.

Mary requested fund raising ideas from you and more of your ideas would again be most welcome.

Do please maximise the benefits of Gift Aid – including asking visitors to sign a “one-off” declaration as appropriate.

Again, well done to the parishes that have completed the process of Charity Commission registration and sent in their new charity registration numbers – further to Mary’s reminder I look forward to hearing from the remaining parishes going through the process…..and do please remember to deal comprehensively with the process relating to any changes in Trustees, including informing us here at the Diocese.

The Portsmouth Diocese committed to register all relevant Parishes earlier this year and it would be very much appreciated if the remaining outstanding registrations could now be completed by the end of September.

The Charity Commission have recently issued a leaflet “The economic downturn – 15 questions trustees need to ask” – to view Charity Commission guidance visit their website, namely

Finally, in 2008 the Bishop’s Council/DBF set up an Investment Advisory Group (IAG) to assist them and other centrally managed trusts and boards to maximise their investment efficiency. From time to time parishes contact the Diocesan Secretary to request advice regarding parish investments. The IAG have therefore agreed to provide parishes with information based on the diocese’s investment strategy and to undertake to update this should the diocese’s approach change. The first issue of this is attached (please see below) and I hope your PCC may find it helpful.

Best wishes to you all.

Christopher (Chris) Malone

Parish Finance Adviser

02392 899655

Addendum (please see below)

ADDENDUM

DIOCESAN INVESTMENT ADVISORY GROUP

TEMPLATE OF GUIDANCE FOR PARISHES (Issued July 2009)

Preamble.

1.Any guidance which we give must include a “ health warning” on the following lines:- All investments are a risk and shares and unit trusts can go down as well as up so that the investor may not receive back that which was originally invested.Whilst 2008/09 have seen major falls in the stock markets they may not yet be at the bottom of the cycle.This guidance is informal and is based on the DBF`s own current policy, and if in doubt the Parish should seek appropriate professional advice.

2.It is assumed that most if not all requests for guidance will fall into the following categories:-

a) The Parish has just had a bequest/windfall of £X and seeks guidance as to how best to invest/manage this.

b) The Parish has been made aware that its current investments are not producing a very good return, or are vulnerable, or are not ethical etc and would like to consider reorganising its portfolio.

c) The current economic/financial turmoil has lead the PCC to seek guidance.

Questions to the Parish prior to giving guidance.

3.What investments do you have at present.

4. Do you have a formal or informal investment policy or aims.

5.In the case of a bequest/windfall, is it in any way restricted in the Charity Law sense

6.Do you anticipate needing the Capital in the near future, or do you want to invest on a long term basis.

7.Do you need maximum income, or are you wanting to increase your reserves as much as possible, or a compromise on both.

Guidance

8. If the money will be needed within say a year, put it in the CBF Deposit Fund which is AAA rated and invested in the Money Market to produce the best possible interest yield.

9.If you are investing long term in order to protect your Reserves against inflation and produce a reasonable income, then put your money in the CBF Investment Fund Income units AND/OR the CBF Property Fund

10. If you have no need of income from this windfall, invest it in CBF Investment Fund Accumulation units.

General information

11.The CBF Funds mentioned are aligned with the Church of England`s “Ethical Investment Policy”.

12.The CBF Funds are managed by CCLA and used by the Church of England generally.There are of course many other possible investment vehicles which may commend themselves to members of your PCC with relevant professional qualifications.

Glossary

CBF. The Central Board of Finance of the Church of England.

CIF. Common Investment Funds. A type of Unit Trust for use only by Charities such as PCC`s and which are exempt from all forms of Tax.

Bonds.Issued by the Government or large public Companies and paying a fixed rate of interest.(Those issued by the Government are also called Gilts)

CCLA. Churches, Charities and Local Authorities.An investment Manager owned jointly by the CBF and various large charities and Local authorities which manages inter alia the various “CBF Church of England Funds” and the “COIF Charities Official Investment Fund”

DBF.The Diocesan Board of Finance which is the body which holds all the Diocesan property and investment assets, manages the Diocesan finances, and is the employer of all Diocesan lay staff.

Equities. Shares in Public Companies(PLC) listed on the principal Stock Exchanges. Total return.A combination of the Dividends paid plus or minus the rise or fall in the market value of the Equity/Share, expressed as a % of the current market value.

Yield.The Dividend paid expressed as a % of the current market value of the Equity/Share.

AAA. The highest credit rating awarded to a financial institution by the independent Body recognised nationally for the purpose.