Agenda Item 13.3

Board Meeting

1 August 2014

Endowment Committee Report to Grampian NHS Board

Committee Meeting on Tuesday 10 June 2014

Purpose of Report

This report updates the Grampian NHS Board on key issues arising from the Endowment Committee meeting held on Tuesday 10 June 2014.

Recommendation

The Board is asked to note the following key points:

  1. Investment Portfolio

The Committee receives an update on investment performance from its Investment Managers, Standard Life Wealth (SLW), at each meeting. The overall market value of investments was valued at £42.6m at 6 June 2014 compared to £42.6 m at 27 February 2013, £41.6m in October 2013,and £40.9m at 31 March 2013. Thecontinued capital growth is matched by income which is forecast in excess of £1.8m 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 has a dedicated research team whichprovides 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

In accordance with the Committee’s previous resolution to invite all areas of the service to develop innovative proposals for the strategic use of Endowment Funds, the recently appointed Operational Manager for NHS Charities is developing links to attract proposals and identify opportunities to use the Endowment Fund more strategically to deliver benefits to our patients.

  1. Projects
  • Robotic Surgery: Enhancement of existing capability within the operating theatre and enabling the development of Robotic Surgery capacity at ARI. Discussions are continuing with planning and clinical staff to progress this project.
  • Therapeutic Roof Garden: Fundraising continues and tenders are being invited to undertake the work. It is anticipated that it will be completed later this year. The Committee previously approved funding of approximately £250k.
  • ARI Improvement of Patient Accommodation: Work continues and the Committee is to make a site visit prior to the September meeting.
  • Cardiology Patient Archiving and Communications System (PACS): Endowment funding approved to employ a short term project manager to work up a bid for specific equipment.
  • Aberdeen Fertility Centre: Funding of £78.6k was approved to convert and upgrade the existing waiting and reception areas to create more confidential clinical areas, better patient flow and enhanced office space.
  • WiFi: In order to rollout wifi access on a Grampian-wide basis,including Community Hospitals, the Committee agreed a funding request of £65k for the purchase of wireless controllers which require to be replaced or upgraded.

Raymond Bisset

Endowment Committee Chair

July 2014

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