# Pandemic pressures forcing charities to sell investments

- Link: https://fundraising.co.uk/2021/12/14/pandemic-pressures-forcing-charities-to-sell-investments/
- Published: 2021-12-14T08:35:00+00:00
- Author: Melanie May

**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). 

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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:

> “For those charities with investment assets, not only are they important to their
> overall financial strength, but they also provide a very important source of income
> to help them meet their objectives and provide the services they offer. Although
> stock markets have risen, portfolios that were targeting income suffered as dividends
> were cut or cancelled. Our analysis of FTSE 100 companies reveals that last year,
> 32 dividends were cancelled, 9 were cut and 13 were suspended.
>  
> “The continued fall in bond yields has also added to the challenge for income 
> investors. In our experience charities that have been able to take a total return
> approach, targeting returns through capital growth as well as income have fared
> better.”

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