Our investments
Fixed asset investments
Our portfolio is being managed by Sarasin and
Partners. On 31 December 2023, our short-term
investments, to be held for more than one year,
totalled £50.9 million, showing a decrease of
£43.6 million to 2022. £46 million was drawn from
our investments during 2023, as part of our strategy
to spend down excess liquidity. The balance now
held with Sarasin is to be treated as our 'rainy-day'
fund, which could be drawn on in a crisis. Market
conditions saw our investments perform well
during 2023, resulting in investment gains of
£2.5 million. Our long-term fund, which includes
the value of some residual holdings with our
previous investment managers, JP Morgan Private
Bank, stood at £1.1 million in comparison to £3.1
million in 2022 following a transfer of funds held
as cash to the charity.
We currently have a low-risk investment strategy
with Sarasin and Partners and continue to review
this strategy on a regular basis, particularly
considering our liquidity target plans. We do not
directly invest in tobacco and have made it clear
to Sarasin and Partners that our funds must not be
directly or indirectly invested in tobacco stocks.
In our financial statements, in addition to the above
funds, our fixed asset investments include legacy
properties of £0.3 million, which are properties
received from legacies when Macmillan has the
title but there is a life interest. We also hold
a programme related investment valued at
£1.2 million, which relates to our investment in
the Care and Wellbeing Fund in partnership with
Social Finance and Big Society Capital.
Innovation Impact Investment Portfolio
The Macmillan Innovation Investment Portfolio
was launched in 2023 with our first investment
of £100,000. The portfolio aims to support the
development and adoption of innovative solutions
that have the potential to transform the lives of
people living with cancer and are likely to generate
revenue for Macmillan. Our investments aim to
support innovations through which we can reach,
support and be relevant to more people affected
by cancer and will prioritise those that support
the health system to address current and future
challenges in cancer care and/or aim to address
health inequalities.
Current asset investments
Additionally, we hold instantly accessible funds
to meet ongoing day to day commitments, which
stood at £32.4 million (2022: £35.4 million) on 31
December 2023. Our trustees regularly monitor
these funds to ensure the security of this money,
as well as reviewing the performance of our
investments. The trustees are satisfied that these
funds are prudently invested and will continue to
monitor their status closely.
Pension schemes
Our defined benefit pension scheme was closed
to new entrants from 30 April 2005, and closed to
future accruals on 30 June 2010. We now operate a
defined contribution stakeholder pension scheme
for eligible employees.
The Financial Reporting Standard 102 (FRS102)
valuation of our defined benefit pension scheme
on 31 December 2023 showed a surplus of £9.3
million, a 5% decrease from 2021. This surplus is not
recorded in the financial statements, as the surplus
in the scheme is not fully recoverable by Macmillan.
A formal triennial valuation was undertaken as of
31 December 2022 and showed a surplus of £4.9
million. The trustees regularly review the pension
scheme and are confident the scheme is well-run
and well-funded and there are no plans to change
the current investment strategy.
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Environmental, social
and governance review
Financial review
Strategic report
Overview Financial statements Thank you