Charity Responsible Multi-Asset Fund Update

Tom Montagu-Pollock, Emilie Shaw, Matt Best and Naomi Morris provide an update on the Responsible Multi-Asset Fund.

13/02/2023
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Authors

Tom Montagu-Pollock
Co-Head of Charities and Fund Manager
Matt Best
Portfolio Manager
Emilie Shaw
Portfolio Director and Sustainability Lead

The Responsible Multi-Asset Fund invests in companies that create a measurable positive impact for people and planet, generating four times the social benefit and 74% less carbon emissions than the global equity index, with 34% of the investments in the Fund directly contributing to the UN Sustainable Development Goals. Detailed reporting is provided in our Impact Report. We are delighted that the Fund had over 310 charities invested and £1.25 billion of assets currently.

The Fund generated a return of -6.5% over 2022 compared with Global equities -8.1% and UK Government Bonds -23.8%. The peer group (ARC Steady Growth) fell -10.2% over the same period. Given the headwinds faced by sustainability focused portfolios over the year, with their naturally lower exposure to value orientated companies and fossil fuels, we are pleased to see continued outperformance compared with the unconstrained peer group. The dispersion of Sustainable Multi-Asset Fund returns over the year was broad with the majority of comparable retail Funds returning between -10% and -20%.

We have become more constructive on fixed income as rates have risen and have gradually been increasing our exposure to government bonds, last week we moved overweight bonds through the purchase of a direct UK Government Bond maturing in 2032. We are still more cautious on equities and we are likely to remain underweight here until we see a peak in US interest rates, a softer US labour market and earnings forecasts that better reflect the likelihood of a recession although we are getting closed to adding. We also still like alternative assets, which have an important role to play in portfolio construction and we remain overweight cash which provides optionality to buy back into our favoured holdings at more attractive valuations. The volatility last year has given rise to some exciting opportunities and we will look to capitalise on those.

This article is issued by Cazenove Capital which is part of the Schroders Group and a trading name of Schroder & Co. Limited, 1 London Wall Place, London EC2Y 5AU. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 

Nothing in this document should be deemed to constitute the provision of financial, investment or other professional advice in any way. Past performance is not a guide to future performance. The value of an investment and the income from it may go down as well as up and investors may not get back the amount originally invested.

This document may include forward-looking statements that are based upon our current opinions, expectations and projections. We undertake no obligation to update or revise any forward-looking statements. Actual results could differ materially from those anticipated in the forward-looking statements.

All data contained within this document is sourced from Cazenove Capital unless otherwise stated.

Authors

Tom Montagu-Pollock
Co-Head of Charities and Fund Manager
Matt Best
Portfolio Manager
Emilie Shaw
Portfolio Director and Sustainability Lead

Topics

The value of your investments and the income received from them can fall as well as rise. You may not get back the amount you invested.