Charity Investment

Marking the 10 year anniversary of our Charity Multi-Asset Fund

29/06/2017

Tom Montagu-Pollock

Tom Montagu-Pollock

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

Kate Rogers

Kate Rogers

Head of Policy and Co-Manager - Charity Multi-Asset Fund

It is 10 years today that the Charity Multi-Asset Fund was launched with the initial support of two charities investing a total of £1 million of assets. Now standing at over £510 million with 301 charity investors we are proud to have reached this milestone, backed by strong investment performance and the ongoing support of our clients.

We launched the fund in 2007 to allow charities of all sizes access to our multi-asset approach. We wanted the ability to offer an efficient, yet diversified way of investing, importantly with daily liquidity. We also realised that a number of charities had similar investment objectives, namely to generate a stable and sustainable distribution whilst protecting against the effects of inflation over the long term, and this led us to set the long term return target of inflation plus 4% per annum and the target distribution of 4% per annum, paid as a regular quarterly dividend.

Little did we realise 10 years ago quite the challenges charities would face in what has been an uncertain economic and political environment. The diversified approach proved helpful in the first few years of the Fund’s life as we endured the global financial crisis, starting in the US in 2008 and spreading to Europe in 2011. Thankfully, since then, markets have been kinder to investors and we have been able to capture nearly 90% of the FTSE All-Share total return with 69% of the volatility since inception. The fund is ranked in the first quartile of the Mercer diversified growth peer group and has outperformed our long-term inflation plus 4% target over the five years to the end of March 2017. We look forward to being able to share 10 year performance figures with you in the coming weeks.

The uncertain political and economic backdrop remains today and we continue to favour diversification in portfolio construction. After delivering strong returns over the last few years, it is times like these that we emphasise the importance of a multi-asset strategy, as compared to some of our peers who favour the more traditional equity and bond focused approach. In periods of market weakness, our strategy has protected against the worst of the market falls. We expect volatility to pick up from the current low levels, which represent near 30 year lows, and will look to take advantage of any opportunities that present themselves.

We believe in the strength of our investment process, the quality of our assets and the fund managers with whom we invest. Whilst we are proud to have reached the fund’s 10 year anniversary, we continue to look forward and seek to do our best for our charity investors in an ever-changing environment.

Author

Tom Montagu-Pollock

Tom Montagu-Pollock

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

Tom began his investment career in 2005 after graduating from Newcastle University with a BA (Hons) in Business Management.

He is now a Portfolio Director with responsibility for a number of segregated portfolios and clients invested in a common investment fund, the Charity Multi-Asset Fund. He co-manages this fund having been involved in its running since launch in 2007.

Tom is a full member (MCSI) of the Chartered Institute for Securities and Investment. He has also completed the London Business School Foundation and Endowment Asset Management Course.

Kate Rogers

Kate Rogers

Head of Policy and Co-Manager - Charity Multi-Asset Fund

Kate specialises in investment on behalf of charities, endowments and foundations and joined Schroders Charities in 2005 after four years with Kleinwort Benson Private Bank Charity team.

Kate is chair of the Charity Investors' Group, which is a membership organisation providing a forum for investment debate. In this role she has collaborated with CFG to launch a guide to written investment policies and 'For Good and Not For Keeps' published by the Association of Charitable Foundations in 2013. Kate also regularly writes on charity investment in the charity sector press.

Kate is also Portfolio Director at Schroders, where she manages a common investment fund, The Charity Multi-Asset Fund, which aims to generate a regular income for charities whilst protecting the capital against inflation over the longer term. She is a CFA charterholder and has a BSc (Hons) in natural sciences from the University of Durham, is Chair of her local community foundation, and governor of her local primary school.

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 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 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 is part of the Schroder Group and 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. 

Contact Cazenove Charities

Achieving your charity's investment objectives takes time and thought. To find out how we can help you please contact:

Giles Neville

Giles Neville

Head of Charities giles.neville@cazenovecapital.com
John Clifton

John Clifton

Business Development Manager john.clifton@cazenovecapital.com