MEETING TO CONSIDER THE
INVESTMENT OF PARTY FUNDS PRIOR
TO A PARTY POLL ON THE ISSUE
"Are you in favour of the principle of the Socialist Party
placing funds not required for immediate use into
A recent report to the Executive Committee notes that in holding our funds in bank deposit accounts, the Party is losing money as long as the rate of return on these accounts are below the rate of inflation. The Party also runs an annual budgetary deficit of around £30,000-£35,000, due to printing the Socialist Standard, maintaining Head Office, etc. With the Party inheriting large legacies, we may need to consider how to invest the funds in order to secure an income that sustains our activities and covers the annual deficit.
The report suggests that we hold a proportion of our funds as cash reserves in bank accounts, securing the best interest rates possible. The cash funds could be spread over different accounts so as to keep within the FSA guarantee of £85,000 on cash investments within one banking group. The remainder, according to the report, might be invested in a diversified portfolio of investment trusts. It appreciates that many members may have difficulties with this and that a decision to invest in investment trusts or any other assets such as corporate bonds or preference shares would have to be made by the Party, rather than an ad hoc committee, the Treasurer or the EC.
Hence the call for a Party Poll.