OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-12-31-accounts

The General Investment Fund

Statement of Total Return Y/e 31 Dec 2024

Notes
Income
Net capital gains / (losses)
2
Revenue
3
Expenses
4
Net Revenue
Total return before distributions
Distributions
6
Movement in undistributed income
6
Change in net assets attributable to
shareholders from investment activity
Statement of Change in Net Assets Attributable
Y/e 31 Dec 2024
Opening net assets attributable to
Shareholders
Receivable on issue of shares
Payable on cancellation of shares
Change in net assets attributable to
Shareholders
Closing net assets attributable to
Shareholders
2024
£
£
3,042,763
2,346,090
(469,508)
1,876,582
4,919,345
(1,999,088)
(26,367)
(2,025,455)
2,893,890
to Shareholders
2024
£
£
80,567,241
40,962
(40,019)
(943)
2,893,890
83,462,074
2023
£
£
6,815,407
2,063,833
(431,272)
1,632,561
8,447,968
(1,594,953)
(120,743)
(1,715,696)
6,732,272
2023
£
£
74,934,136
119,815
(1,218,982)
(1,099,167)
6,732,272
80,567,241

The notes on pages 18 to 25 form part of these Financial Statements.

17 | P a g e

The General Investment Fund

Balance Sheet as at 31 Dec 2024

Assets
Investment assets
7
Cash and bank balances
8
Total assets
Liabilities
Creditors
9
Distributions payable
Undistributed income
6
Net assets attributable to shareholders
Dividend Equalisation Reserve
Capital Realisation Account
Capital Account
2024
£
£
83,801,897
231,595
84,033,492
(1,210)
(133,224)
(436,984)
(571,418)
83,462,074
499,252
58,348,883
24,613,939
83,462,074
2023
£
£
80,709,285
480,280
81,189,565
(94,247)
(117,460)
(410,617)
(622,324)
80,567,241
648,125
55,306,120
24,612,996
80,567,241
2023
£
£
80,709,285
480,280
81,189,565
(94,247)
(117,460)
(410,617)
(622,324)
80,567,241
648,125
55,306,120
24,612,996
80,567,241
81,189,565
(622,324)
80,567,241
80,567,241
499,252
58,348,883
24,613,939
648,125
55,306,120
24,612,996

Approved by the Trustees.

S Johnston H Wilson

28 October 2025

The notes on pages 18 to 25 form part of these Financial Statements.

18 | P a g e

The General Investment Fund - Notes to the Financial Statements

Note 1 - Accounting policies

(a) Basis of accounting

The Financial Statements have been prepared under the historical cost basis, as modified by the revaluation of investments, and in accordance with the accounting policies set out below and the Statement of Recommended Practice for Authorised Funds issued by the Investment Management Association (IMA) in May 2014 as amended in June 2017.

The functional currency and presentation currency of the Fund is sterling and no rounding has been applied.

The Fund is a common investment fund and exists for the benefit of those charities connected with the Presbyterian Church in Ireland which have decided to invest therein. The rules of the Fund provide that Charites investing in it that wish to realise their investment must give advance notice and therefore shares are always realised at a future monthly valuation date. As a consequence, any withdrawal payment will reflect the current underlying value of investments in the Fund. The notice period also provides the Trustees with sufficient time to generate funds to meet the sales proceeds. Indeed, given both the level of cash on hand and the Fund’s investments primarily being in equities quoted on recognised active markets, the Fund’s investments are considered to be liquid. In the unlikely event that all investors made requests to withdraw their shares, the underlying investments would be realised in cash and distributed to the investors. It is not therefore expected that a situation could arise where a charity requested the withdrawal of its shares and there would be no underlying net assets for distribution. The Rules of the Fund ensure that a negative net assets position should not arise.

In addition, the underlying source of funds from many of the charities that have invested in the Fund is permanent endowments and the Trustees assessment is that they do not expect a significant increase in withdrawal requests. The level of income received on the underlying investments determines, subject to the rules of the scheme, the dividend that is paid to the participating charities in the Fund. The Fund normally only distributes what it has received.

As the conflict between Russia and Ukraine continues, the situation has been exacerbated by developing conflict in the Middle East and the second presidency of Donald Trump in the USA is having material impacts on global markets. The Trustees and Investment Managers continue to monitor the situation for potential impacts on the ongoing operations of the Fund. The Trustees have assessed the ability of the Fund to continue as a going concern, including considering the nature of its obligations related to withdrawals and dividends indicated above, and have a reasonable expectation that the Fund will continue in operational existence for the period to 31 October 2026. Consequently, the Trustees continue to adopt the going concern basis of accounting in preparing the Fund’s annual financial statements.

(b) Revenue recognition

Dividends on ordinary stocks, including special dividends where appropriate, are credited to revenue when a legally binding and unconditional right to receive exists. Interest on bank balances is accrued on a daily basis. Revenue from fixed rate securities is recognised on an effective yield basis.

(c) Stock dividends

The ordinary element of stock received in lieu of cash dividends is recognised as revenue of the Fund. Any enhancement above the cash dividend is treated as capital.

(d) Special dividends, share buy-back or additional share issue

The underlying circumstances behind a special dividend, share buy-back or additional share issue are reviewed on a case-by-case basis in determining whether the amount is revenue or capital in nature. Amounts recognised as revenue form part of the distribution.

(e) Expenses

19 | P a g e

The General Investment Fund - Notes to the Financial Statements

The fee paid to the Investment Manager is based on a fixed percentage of the value of the Fund and is calculated on a quarterly basis. Audit, legal, administration and transaction charges are charged separately to the revenue of the Fund before distribution.

(f) Distributions

Distributions are paid half yearly. The Fund utilises a Dividend Equalisation Reserve to even out fluctuations in revenue which arise over the years (see note 10). It is the Fund’s policy to calculate the distribution based on the net revenue receivable. The Rules of the Fund provide that not more than 10% of net income available for distribution can be transferred to the income reserve.

(g) Investments

Investments are a form of basic financial instrument. They are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price.

The Trustees do not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors.

Investments are included at fair value as described below:

(h) Realised and unrealised gains and losses

All gains and losses are taken to the Statement of Total Return as they arise. Realised gains and losses on

investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Total Return.

(i) Foreign exchange

Assets and liabilities in foreign currencies are expressed in sterling at rates of exchange ruling on the accounting date. Transactions in foreign currencies are translated into sterling at the exchange rates ruling on the transaction dates. Fluctuations in the value of such forward currency contracts are recorded as unrealised gains or losses. Realised gains or losses include net gains or losses on transactions that have terminated by settlement or by the Fund entering into offsetting commitments.

20 | P a g e

The General Investment Fund - Notes to the Financial Statements

Note 2 - Net Capital Gains / Losses
The net capital gains / (losses) during the year comprise
Realised gains on disposal
Unrealised (decreases) / increases in value
2024
£
1,676,949
1,365,814
3,042,763
2023
£
26,807,805
(19,992,398)
6,815,407
Note 3 - Revenue
Investment income
Property rents
Bank interest
Investment charges
Note 4 - Expenses
Administration charges
Investment Adviser Fees
Audit
LEI Registration
2024
£
2,281,181
0
64,909
0
2,346,090
2024
£
45,230
411,616
12,602
60
469,508
2023
£
1,981,618
595
78,862
2,758
2,063,833
2023
£
43,403
376,182
11,627
60
431,272

The above expenses include VAT where applicable.

Note 5 - Taxation

The Fund is exempt from UK income and capital gains taxes due to its charitable status pursuant to Sections 505 and 506 of the Income and Corporation Taxes Act 1988. Distributions are paid and reinvested revenue credited gross to shareholders on the basis that all recoverable UK taxation has been reclaimed. Overseas withholding tax is deducted in full from overseas income on receipt. Recoverable withholding tax is credited to income on receipt.

21 | P a g e

The General Investment Fund - Notes to the Financial Statements

Note 6 - Distributions
31 March - interim
30 September - final
2024
£
911,115
1,087,973
1,999,088
2023
£
736,279
858,674
1,594,953

Net Income received after 30 September and before 31 December will be included in determining the distribution due on the following 31 March.

Shareholders who have not held shares for the full period since the last distribution date are entitled to receive a proportion of the dividend declared at 31 March or 30 September. This is calculated based on the number of complete months the shares have been held since the last distribution date.

The valuation of shares calculated at the month end dates during 2024 is a capital value and does not take account of any undistributed income.

Movement in undistributed income
Net income available for distribution
Undistributed income at the start of the year
Dividends
Transfer from (to) dividend equalisation reserve
Undistributed income at the end of the year
Increase in undistributed income
Distributions per share
The distributions per share were as follows
31 March - interim
30 September - final
2024
£
1,876,582
410,617
(1,999,088)
148,873
436,984
26,367
2024
£
15.0p
18.0p
2023
£
1,632,561
289,874
(1,594,953)
83,135
410,617
120,743
2023
£
12.0p
14.0p

22 | P a g e

The General Investment Fund - Notes to the Financial Statements

Note 7 - Investment Assets
Equity
Private Equity & Other
Infrastructure & Operating
Property
Contractual & Other Income
Fixed Interest
Cash & Near Cash
Portfolio Total
2024
£
60,251,030
3,229,344
7,726,795
3,844,221
1,125,868
6,763,195
861,444
83,801,897
2023
£
57,159,435
1,843,242
7,255,303
3,948,199
1,637,574
7,249,269
1,616,263
80,709,285

Fair value hierarchy of investment assets:

FRS 102 requires the disclosure of investments under the following hierarchy.

2024 2023
£ £
Category 1 83,801,897 80,709,285
Category 2

There were no individual shareholdings or investments which are considered to be material with regard to their market values and proportion of the portfolio as at 31 December 2024. The Trustees consider 5% of the year end market value of the investment portfolio to be an appropriate threshold for reporting material investments.

23 | P a g e

The General Investment Fund - Notes to the Financial Statements

2024 2023
Note 8 - Cash at bank & in hand £ £
Bank balances 231,595 480,280

The Trustees of the Presbyterian Church in Ireland avail of the Presbyterian Church’s central banking facilities which are also used by Councils and Agencies of the General Assembly of the Presbyterian Church in Ireland. The bank balance at 31 December 2024 of £231,595 is therefore represented by holdings in central accounts with the Danske Bank and Santander Bank.

Cash balances of £861,444 held by the Investment Manager are included within investments and are shown in the Portfolio Statement at 31 December 2023 (2023: £1,616,263).

Note 9 - Creditors
Investment Manager's Fees
Note 10 - Dividend Equalisation Reserve
Reserve at the start of the year
Transfer to / (from) reserve during the year
Reserve at the end of the year
2024
£
1,210
2024
£
648,125
(148,873)
499,252
2023
£
94,247
2023
£
731,260
(83,135)
648,125

The Rules of the Fund provide that a ‘Dividend Equalisation Reserve’ can be held to help reduce fluctuations in the amounts distributed.

The Dividend Equalisation Reserve is included in the total value of the Fund attributable to shareholders.

Note 11 - Financial instruments

Fair value

Securities held by the Fund are valued at bid value (see note 1(g)) as this is considered to be a fair representation of the amount repayable to shareholders should they wish to sell their shares. Other financial assets and liabilities of the Fund are included in the balance sheet at amortised cost. The main risks arising from the Fund’s financial instruments and the Investment Manager’s policies for managing these risks are summarised below. These policies have been applied throughout the period and the comparative period.

Market price risk

This is an actively-managed Fund, which invests mainly in UK and overseas equities and fixed interest investments. Investors are thus exposed to market price risk, which can be defined as the uncertainty about future price movements of the financial instruments in which the Fund is invested. Market price risk arises mainly from economic factors, including investor confidence, and is not limited to interest rate and currency movements. This exposure to market price risk may result in substantial fluctuations in the share price from time to time, although there will generally be a close correlation in the movement of the share price to the markets in which the Fund is invested. The Fund seeks to mitigate these risks by holding a diversified portfolio of investments in line with the investment objectives. Risk is monitored at both the asset allocation and stock selection levels by the Trustees and Investment Manager on a regular basis.

24 | P a g e

The General Investment Fund - Notes to the Financial Statements

Credit risk

The Fund’s transactions in securities expose it to the risk that the counterparty will not deliver the investment for a purchase or the cash for a sale. To minimise this, the Fund only deals with an approved list of brokers maintained by the Investment Manager.

Liquidity risk

Financial instruments held by the Fund, excluding short-term debtors and creditors are made up of UK and overseas equities, fixed interest stocks, common investment funds and Sterling cash deposits. These assets are generally liquid, except for pooled funds which are realisable only on their weekly or monthly dealing dates, and enable the Fund to meet the payment of any redemption of units that unit holders may wish to make in accordance with the rules of the scheme.

Currency risk

The Fund is exposed to fluctuations in foreign currencies as some of its assets and revenue are denominated in currencies other than sterling, the base currency of the Fund. In respect of revenue, receipts are converted to sterling shortly after receipt.

Interest rate risk

The majority of the Fund’s financial assets are equities which do not earn interest nor have maturity dates. The Fund invests in some fixed interest securities, the revenue of which may be affected by changes to interest rates relevant to particular securities or as a result of the Investment Manager being unable to secure similar returns following the disposal or redemption of securities. The value of fixed interest securities may be affected by interest rate movements or the expectation of such movements in the future.

Note 12 - Commitments and contingent liabilities

There were no other commitments or contingent liabilities at 31 December 2024 (31 December 2023 - £nil).

Note 13 - Related party transactions

The administration services for the Fund are provided by the Financial Secretary’s Department of the Presbyterian Church in Ireland. The Church charged a fee of £45,230 during the year (2023 - £43,403) for these services.

The Rules of the Fund provide that any charity connected with the Presbyterian Church in Ireland can invest in the Fund and that the Trustees determination as to whether any charity is qualified to participate is conclusive.

Funds managed by the PCI Trustees
Councils and agencies of the PCI General Assembly
Congregations of and other charities connected with PCI
2024
18,162,793
45,600,704
19,698,577
83,462,074
2023
17,343,204
43,539,374
19,684,663
80,567,241

25 | P a g e