The impact of the coronavirus on investment income

We know income is an important topic for the sector, as voluntary income is under considerable pressure. NCVO estimate that the sector will lose up to £4bn in voluntary income as a result of this crisis, and we are speaking to many clients that are already feeling the impact on their own activities. A survey by NCVO, CFG and the Institute of Fundraising highlight the difficult position many trustees are in; with charities expecting a 48% decline in income at the same time as a 43% rise in demand for their services. Charities are understandably dipping into reserves, this is the rainy day they’ve been saving for, and Foundations and funders are adapting grant making to provide additional support.

The coronavirus crisis and oil price war are having a profound impact on economic growth and the cash position of companies. Many businesses in the most affected sectors such as tourism, hospitality, aviation and retail may have to cut or suspend dividend payments entirely for a period to preserve their cash resources and the viability of their businesses. Any company that has received government assistance to stay afloat, will find it particularly difficult to justify maintaining their dividend payments to shareholders. Even those companies that have ample financial capacity to keep paying dividends at the same level through a temporary profit dip are likely to adopt a cautious approach, given the high level of uncertainty.

In this webinar we ask three experts, from the UK and global equities and UK commercial property to outline their expectations for investment income over the coming 12 months and beyond.

We continue to work with our charity clients to understand the impact of the forecast income falls on individual budgets and how we can best support them. Please get in touch with your usual contact if you have any further questions.

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. Registered Office at 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. 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:

James Brennan

James Brennan

Portfolio Director