Charity Multi-Asset Fund - six years on
Tom Montagu-Pollock looks at our flagship fund’s history to date.
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.
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