Charity Investment

Charity Multi-Asset Fund - six years on

Tom Montagu-Pollock looks at our flagship fund’s history to date.

02/12/2013

Tom Montagu-Pollock

Tom Montagu-Pollock

Portfolio Director, Co-Manager, Charity Multi-Asset Fund

Schroders

It has been six years since the Charity Multi-Asset Fund was launched with the initial support of two charities investing a total of £1m of assets.

We launched the Fund in June 2007 to allow charities of all sizes access to Schroders’ Multi-Asset approach. We wanted the ability to offer an efficient yet diversified way of investing, importantly with daily liquidity. We also felt that a number of charities had similar investment objectives, namely to generate an income whilst protecting against the effects of inflation over the long term. This approach has meant that the fund has been well supported and has grown to over £293m with 175 charity investors at the time of writing.

The Charity Multi-Asset Fund has had a challenging market environment since launch. The Fund has a target return objective of Inflation (RPI) +4% per annum over an economic cycle. A secondary aim of the fund is equity like returns with reduced volatility. Pleasingly this secondary aim has been achieved since inception. The fund has generated a total return broadly in line with equity markets, with approximately two thirds of equity market volatility. The Fund has also paid out a steady distribution (1% per quarter). Although the inflation target remains a challenging one, we believe that we should be able to achieve this over a full economic cycle.

Whilst we are proud to have reached the Fund’s sixth anniversary, we continue to do our best for our charity investors in what continues to be an uncertain environment. As ever, thank you for your support. If you would like further information on the Charity Multi-Asset Fund, please contact Tom Montagu-Pollock or read more about the Charity Multi-Asset Fund.

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital Management does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital Management has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital Management is a trading name of Schroder & Co. Limited 12 Moorgate, London, EC2R 6DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored.