PART 1Purposes, powers and governing documents
Permanent endowment
13Total return investment
1
The Charities Act 2011 is amended as follows.
2
After section 104A insert—
104AATotal return investment: social investments
1
This section applies to a fund, or a portion of a fund, in respect of which a resolution under section 104A(2) has effect.
2
The charity trustees may resolve that—
a
the fund or portion, and
b
any returns from the investment of the fund or portion,
may be used to make social investments (within the meaning of section 292A) which they could not otherwise make.
3
While a resolution under subsection (2) has effect, regulations under section 104B(1)(b) and (ba) apply to—
a
the fund or portion, and
b
any returns from the investment of the fund or portion.
3
In section 104B (total return investment: regulations)—
a
in subsection (1)(a), for “section 104A(2)” substitute “sections 104A(2) and 104AA(2)”
;
b
omit the “and” following subsection (1)(b);
c
after subsection (1)(b) insert—
ba
the use of a relevant social investment fund to make social investments (within the meaning of section 292A),
d
after subsection (1)(c) insert
, and
d
any steps that must be taken by charity trustees in respect of a relevant social investment fund in the event of a resolution under section 104AA(2) ceasing to have effect.
e
in subsection (2)(a), after “104A(2)” insert “or 104AA(2)”
;
f
in subsection (6), for “section “relevant” substitute
section—
“relevant”
g
in subsection (6), at the end insert—
“relevant social investment fund” means a fund, or a portion of a fund, and any returns from the investment of the fund, or portion, in respect of which a resolution under section 104AA(2) has effect.