£400,000 Covid hit for Borders Common Good Funds

by DOUG COLLIE

A world wide slump in financial markets resulting from the Coronavirus pandemic wiped more than 15 per cent off the £2.780 million currently invested on behalf of Common Good funds in the Scottish Borders. The £435,000 loss was felt most by the Jedburgh fund which suffered a £143,000 hit.

The extent of the losses is outlined in the annual accounts of the region's twelve Common Good funds, published by Scottish Borders Council which acts as trustees of the burgh charities.

Most of the cash reserves from the dozen funds is invested in the Kames Capital plc Diversified Monthly Income Fund. The report which accompanies the statistics says: "As a result of the COVID-19, global markets across most asset classes have seen a drop, resulting in an unrealised loss for 2019/20."

It means the Galashiels fund with £160,000 vested in Kames at the end of the 2018/19 financial year last March is £25,000 poorer in March 2020.

The other main figures are Hawick, loss £73,000, new value £387,000; Jedburgh, loss £143,000, new value £767,000; Kelso, loss £42,000, new value £225,000; Lauder, loss £39,000, new value £211,000; Peebles, loss £74,000, new value £393,000; Selkirk, loss £35,000, new value £194,000.

But while investments have taken an unforeseen battering from the virus, a revaluation of Common Good property and land has resulted in a sizeable increase in so-called tangible assets.

As the report to the trustees says: "In line with the Accounting Policy-Tangible Fixed Assets and Depreciation, all Common Good assets were revalued as at 1 April 2019 with a net gain of £3.481 million showing in the Statement of Financial Activities."

All of that means the main funds have seen the value of buildings and land increase substantially in the wake of the revaluation. The individual figures are with last year's total in brackets:

Galashiels £682,000 (£518,000); Hawick £4.430 million (£3.518 million); Innerleithen £514,000 (£256,000); Jedburgh £541,000 (£442,000); Kelso £917,000 (£713,000); Lauder £1.295 million (£983,000); Peebles £852,000 (£766,000); Selkirk £3.903 million (£3.044 million.

The combined total of tangible assets for all 12 funds now stands at £13.450 million compared with £10.490 million at March 31st 2019.

When the cash investments and property values are added together the total worth of the funds is £16.262 million (£13,533 million).

During 2019/20 the largest amounts in donations to local organisations were made by Hawick at £63,000, Jedburgh £37,000 and Selkirk £28,000.

The total disbursed by the dozen funds was £171,000 while support and governance costs accounted for £52,000 and £684,000 was taken up by property costs and depreciation.