Wealth and Investment Management

Charity Investment Services

Contents 1

Charity Investment Services within Barclays

2

Barclays Wealth Charity Proposition

3

Portfolio Management

4

Investment Approach

5

Barclays best thinking delivered with ethical screen

6

UK Charity Sector

7

Citizenship at Barclays: Our Shared Growth Ambition

8

Meet Our Charity Team

Charity Investment Services within Barclays We have a long history of working in close partnership with charities, foundations and other non-profits who appreciate our comprehensive investment management services that include:

Dedicated specialists

Consistent delivery

Holistic approach

At Barclays we know the financial needs of charities are as wide and varied as the organisations themselves. Our starting point is therefore always taking the time to truly understand your goals in order to help you navigate complex regulatory demands, while preserving and growing your assets. As a client of Barclays, we will ensure you receive the most appropriate services we can offer, including our Corporate Banking team who can support your day-to-day banking. Please note: Investments can fall in value as well as rise. You may get back less than you invest.

Respect Integrity Service Excellence Stewardship Charity Proposition | 1

Barclays Wealth Charity Proposition We understand and are focused on the needs of the charity sector in the UK We have the expertise to support charity clients – with a specialised focus on family foundations, education, religious orders and sports foundations.

UK Charity Market

Barclays Sector Focus

Barclays Product Offering

Barclays understands and can support the UK’s charitable sector that is: • Growing considerably with over 165,000 registered charities nationwide across a diverse range of sectors • Facing declining donations and reduced government support • Challenged by a low interest rate environment and volatile markets

We work with charities and other non-profit entities across the UK and have specific expertise within Family Foundations, Education, Military Charities, Sports Foundations and Religious Orders • Over 60 years of presence in the the UK’s Charity sector • Nationwide coverage with more than 20 Charity investment specialists

Barclays are a holistic banking and investment provider in a sector which is dominated by traditional asset managers • Long term discretionary investment management • Treasury and short term cash management • Credit facilities including Portfolio Finance • Awarding winning Charity Corporate Banking Charity Proposition | 1

Charity Proposition | 2

Portfolio Management

• Total Return

We understand that income can be important for some charities - and we work hard to ensure that the income delivered by the charity fund is strong, sustainable and inflation proofed.

• Multi-Asset Class Portfolios

Edward Kirwan, Head of Charity Investments

Our Investment Management solution employs an open architecture approach. We manage investment mandates for Clients which include: • The Barclays Charity Fund • Income

• Single Asset Class Portfolios

The Barclays Charity Fund

EIRIS Screening

Tax elected fund tailored to the investment needs of charities

The fund has the following ethical restrictions:

• Target yield – targets a 3.5% income p.a. • Inflation protection – focussed on capital preservation over the long term • Ethically screened – restrictions around direct investments in tobacco, arms, gambling and pornography • Well diversified – access to world leading investment managers • Competitively priced – competitively priced compared to the rest of the market • Administratively convenient – quarterly income distributions

3 | Charity Proposition

Tobacco When it constitutues more than 10% of revenue Arms When it constitutues more than 10% of revenue Pornography When it constitutues more than 3% of revenue Gambling When it constitutues more than 10% of revenue

Investment Approach Managing Your Investment Reserves

£

Your Cash Management

Your spend down Reserves

Your long term Investments

Cash Management Service

Fixed Income Discretionary Investment Management

Multi-Asset Class Discretionary Investment Management

• Matching your Fixed Income investment returns with your spend down needs for medium term projects

• Diversifying through nine asset classes aiming to provide you with income returns that out perform cash over the long term whilst minimising volatility

• Enabling you to manage your liquidity needs • Offering you steady returns from longer term investments in cash instruments • Can be combined with a Fixed Income portfolio

• Delivering you our expertise drawing on our award-winning bond research from our investment bank

• Offering you a truly institutional quality proposition, tailored to charity and not-for- profit clients.

Your Time Horizon 0-12 Months

1-5 Years

5-10 Years +

Charity Proposition | 4

Barclays best thinking delivered with ethical screen Our partnership with Vigeo EIRIS enables us to effectively manage this ethical screen in a robust and efficient manner.

Over half of our Charity clients with segregated portfolios have some form of an ethical overlay in place.

Vigeo EIRIS Screen

5 | Charity Proposition

Implement Ethical Constraints

Assess new & alternative investments

UK Charity Sector Industry Challenges: External Pressures Public trust and confidence in charities has fallen from 6.7 in 2014 to 5.7 out of 10 in 2016.*

Market conditions Unprecedented levels of regulation & scrutiny on the charity sector, coupled with low interest rates and declining donations, has reinforced the need for the sector to engage with trusted partners. At Barclays, we understand the sector and work in collaboration with our clients to ensure they are able to effectively manage the funds for their organisation.

Risks facing Charities • Ensure the charity remains true to the charitable purpose and the objectives set out in the governing document • Comply with the requirements of other legislation and regulators which govern the activities of the charity • Act with integrity, and avoid any personal conflicts of interest or misuse of charity funds or assets

Financial

• Invest the assets of the charity for the best return concentrating on investments which help the charity achieve its mission • Make well informed decisions taking advice where needed

Reputational

* Charity Commission News Issue 54

Regulatory

• Understand and manage risks

Charity Proposition | 6

Citizenship at Barclays: Our Shared Growth Ambition Finance can play a critical role as a key enabler of social and economic progress, growth and development Barclays is committed to using our skills and resources to deliver the best results for everyone. We are seeking fair, ethical and open solutions to problems and striving to leave things better than we found them.

Access to financing Financing to help solve social and environmental challenges

Access to financial and digital empowerment Enhancing access to financial services and financial health for individuals and SMEs including digital skills training

Our commitment

Our commitment

Deliver billions in financing to solve global challenges

Enhance financial and digital access for millions of individuals and SMEs

Access to employment Helping people to develop vital skills they need to get into work, and supporting entrepreneurs to scale high-growth businesses creating employment Our commitment Upskill millions of people and drive job creation through our support for entrepreneurs

We continue to have performance targets for the way we do business - reducing our carbon emissions by 30% by 2018, ensuring we pay our suppliers on time and that our colleagues attest to our global Code of Conduct. 7 | Charity Proposition

Meet Our Charity Team Barclays is committed to Charities with more than 20 charity investment specialists across the UK. You will benefit from our team based approach, ensuring that your portfolio is constantly monitored and you receive a high level of proactive advice and service.

Kathleen Britain Head of Charities e: [email protected]

An experienced and dedicated specialist charity team Charity Proposition | 8 7

This item can be provided in Braille, large print or audio by calling +44(0)1624 684 444*. * Lines are open 8am to 6pm UK time Monday to Friday excluding UK bank holidays. Call costs may vary – please check with your telecoms provider. Calls may be recorded so that we can monitor the quality of our service and for security purposes. Barclays offers wealth and investment management products and services to its clients through Barclays Bank PLC and its subsidiary companies. Barclays Bank PLC is registered in England and authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered No. 1026167. Registered Office: 1 Churchill Place, London E14 5HP. Item Ref: IBIM5077 October 2016