INVESTMENT POLICY

Introduction and Operating Arrangements

The Trustees will retain control of the charity's investment policy but may, from time to time, allow suitable persons (e.g. a firm of investment advisers) to carry out actions which the trustees have directed to be undertaken on their behalf. McCrea Financial Services have been retained as investment advisers to the Regional Studies Association (the Association). All the Association's investments are included within the Association's charitable status. McCrea Financial Services are to supply valuations of the investments in time for each of the Association's Board meetings and to make available two full reports including valuations and recommendations for the portfolio to the Board and Finance Sub-Group each year.

Portfolio Objectives

• Create sufficient income to assist the Association in carrying out its purposes over time with proper consideration to future needs and to
• maintain and if possible, enhance the value of the invested funds whilst they are retained.

The Association wishes to achieve a balanced return from a broadly diversified blend of assets.

The Association maintains a small number of additional accounts which are solely designed to hold excess cash.

Investment Parameters and Restrictions

The Association has instructed that the investment holdings are to be oriented towards the long term (five years or more) and should involve a spread of investment exposures based in the UK and wider global markets where appropriate. Investments will be in an appropriate spread in a range of investment vehicles from low risk including bank/building societies, Deposit/National Savings accounts and fixed interest to more adventurous investments including managed unit trusts/OEICS etc. NB In the context of asset allocation, convertibles would be viewed as equities. It is accepted that overseas exposure will be taken via collective vehicles.

The following parameters are to be observed:

• The Association's Board will instruct the delegated trustees and investment advisers on the sums of money to be invested and on any particular detailed requirements at any one time.
• Investments should be subjected to a moderate risk within a balanced portfolio.
• No investment is to made in company securities not listed on a recognised stock exchange or in unit trusts not recognised under the Financial Services Act 1986.
• There are to be no holdings in single company investments.
• The ethical statement set out below applies to all investments made by the Association.

Under instruction from the Board a minimum of the honorary Treasurer and Chair are the trustees delegated to deal with investments in conjunction with the Chief Executive of the Association. The trustees, in consultation with the Chief Executive will review this policy statement regularly.

Ethical Awareness

The Board of the Association begins from the premise that its principle responsibility is to act in the best interests of the aims and objects of the charity. The Board believes that companies that clearly depart from acceptable environmental and ethical policies are unlikely in the longer term to produce sustained growth in shareholder value. The Board therefore (with the consent of the membership) takes account of environmental and ethical issues in the investment management process.

The investment advisers will be responsible for researching the market and ensuring the Association's investment criteria and aims are met. The advisers will also monitor the investments and the fund manager's investment strategies and ensure on a regular basis that they still fall within the Association's investment guidelines.

Ends
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