Pandemic pressures forcing charities to sell investments
Melanie May | 14 December 2021 | News
64% of charities with at least £1 million of investable assets have had to sell or cash in some of their investments during the pandemic because of a fall in income, new research shows.
The research, from the charity investment arm of independent investment manager James Hambro & Partners, reveals that four out of ten charities (42%) say they have been forced to do this to meet growing demand for their services during the pandemic.
James Hambro & Partners surveyed 100 senior executives of UK based charities in the summer, with a combined £3 billion in investible assets (stock market related investments).
Advertisement
With investible assets relied upon to bring in an income, 18% said that the funds they generate has fallen dramatically since the pandemic started, and a further 52% said they have fallen slightly. Only one in ten said the income generated from their investments had risen while 20% said there had been no change.
In addition, looking at the value of these assets, 15% of those surveyed said that since the pandemic began the value of their investment assets had increased dramatically, and a further 59% said they have risen slightly as stock markets around the world have risen. Only 15% said they have fallen in value, with the remainder saying there has been no change.
Nicola Barber, Partner-Head of Charities, James Hambro & Partners said:
- More than half of UK pension funds have made impact investments (8 March 2022)
- New CIoF resource published on making the case for fundraising investment (5 July 2023)
- Charity Commission updates guidance on charities & investments (1 August 2023)
Related posts
About Melanie May
Melanie May is a journalist and copywriter specialising in writing both for and about the charity and marketing services sectors since 2001. She can be reached via thepurplepim.com.