Endowment Committee Report to Grampian NHS Board

Committee Meeting on Monday 3rd March 2014

Purpose of Report

This report updates the Grampian NHS Board on key issues arising from the Endowment Committee meeting held on Monday 3rd March 2014.

Recommendation

The Board is asked to note the following key points:

  1. Investment Portfolio

The Committee receives an update on investment performance from our Investment Managers, Standard Life Wealth (SLW), at each meeting. The overall market value of investments was valued at £42.2m at 27th February 2014 compared to £41.6 m at 31 October 2013 and £40.9m at 31 March 2013. Thecontinued capital growth is matched by income which is forecast in excess of £1.5m for the year compared to a target of £1.25m. This healthy performance has continued over the last two years due to a high weighting towards non UK equities in the portfolio particularly stocks in Asian and emerging markets. Recently however there has been a degree of uncertainty with Asian markets weakening and Western markets starting to improve. SLW have a dedicated research team who provide the latest market intelligence and analytical support to our portfolio managers. The Asian market is still considered a good long term investment and strategically we will continue to maintain a high weighting in this area while looking to capitalise on the new growth in the Western and UK markets. Equities are still considered the best investment prospect compared to Government bonds and this position is also reflected in our current portfolio.

  1. Financial Strategy

The Committee considered the financial plan for the next five years including the opportunities to use the Endowment Fund more strategically to deliver benefits to our patients. The Committee have recently approved a number of schemes that will significantly enhance our patients experience e.g. to enhance the aesthetic appearance of the finished ward accommodation in East End 2 but there remains significant scope to deliver further benefit without compromising the “day to day” use of our specific funds and ward/department level. Accordingly the Committee will shortly invite all areas of the service to develop innovative proposals for the strategic use of Endowment Funds. The proposals will be evaluated against the following criteria:-

  • The overall scheme isin line with NHS Grampian’s 20/20 vision.
  • The Endowment funded elements are in addition to the core NHS provision.
  • The schemewill enable benefits to patients through improvements inthe overall quality of care, physical environment and/or amenity.
  • The scheme has the agreement of all stakeholders including service users andstaff.
  1. Enhancement of existing capability within the operating theatre and enabling the development of Robotic Surgery capacity at ARI

The Committee approved a request from the Urological Cancer Charity UCAN for a contribution towards their fund raising efforts to create the enabling infrastructure and implement future technological advance in minimally invasive surgeryatARI. An initial contribution of £0.4m was made available to complete the contribution of £1m that UCAN will make towards the cost of enhancing the additional theatres currently under development at ARI. This investment will allow the implementation of new technology to support the development of minimally invasive surgical techniques e.g. 3D imaging which will bring immediate benefits to the patients experience through shorter operating and recovery times. The second stage of UCAN’s fundraising efforts will be to focus on the fundraising necessary to procure advanced equipment and technology to support the further development of minimally invasive surgery (target - £1.5m). The Committee agreed to pledge £0.25m from General Endowment funds towards this target and to support a further £0.25m from specific fundswithin the areas that will benefit from the development, if this supported by the local fund holders.

Raymond Bisset

Endowment Committee Chair

21 March 2014

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