Share

Charities bullish over investments

Charities bullish over investments
News

Charities bullish over investments

Finance | Gareth Jones | 1 May 2006

Charities investment confidence rose considerably in 2005, a new survey has found. The JPMorgan Asset Management Charity Investment Industry Survey 2005 says the bullishness is represented in charities' appetite for risk, expected returns, and asset allocation. Whereas in 2004 charities were cautious due to disappointing stock market performance in the earlier part of the decade, 2005 saw a significant turnaround stemming from the good performance of equities and most other asset classes over the past year.

Almost a third expect overall investment returns of 8 per cent or more over the next three to five years, compared with only 8 per cent of in 2004 (see chart). In addition, 90 per cent expect returns to meet the future requirements and commitments of the charity, compared to 81 per cent last year. Half of 2005 respondents expect healthy returns (8 per cent or more) from UK equities. Three quarters of charities saw their assets grow in 2005, with more than half experiencing growth of over 11 per cent. Less than a third of charities saw these kinds of returns in 2004.

More than two thirds of charities have carried out formal manager reviews within the past two years as part of their regular review timetable. However, almost half made no manager alterations at the time, which the survey says again highlights charities'optimism about the future, and indicates they are feeling more at ease with their investment decisions.

Jeremy Wells, head of charities investment at JPMorgan, said the survey showed an astonishing u-turn in the mindset of charities over the past year. "While 2004 saw caution and risk aversion, 2005 reveals an enhanced confidence within charity investment, arising from strong performance over the past year. Indeed, the optimism is such that 13 per cent of charities reveal they have no concerns whatsoever about managing their assets over the next three to five years."

Annual percentage rate of return expected over next 3-5 years (% respondents)

newschart124 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Free eNews

2014 London Marathon on track to beat the £53m raised last year

18 Apr 2014

The 2014 London Marathon is on track to raise more than £53m for good causes and break the Guinness World...

No evidence of criminality at Tower Hamlets, say police

17 Apr 2014

The Metropolitan Police has said that there is “no credible evidence of criminality” following an...

Donations double in one day following Marathon runner’s death

16 Apr 2014

The amount donated to the National Osteoporosis Society, the charity 42-year-old Robert Berry was running...

Paula Sussex to be the next Charity Commission chief executive

17 Apr 2014

Paula Sussex, senior vice president, public sector of CGI, has been appointed the new chief executive...

Impact of welfare reforms felt by 95 per cent of Yorkshire charities

17 Apr 2014

A report published today which looks at the impact of welfare reforms in the region of Yorkshire and Humber...

Trussell Trust sees use of its foodbanks 'almost triple' in a year

16 Apr 2014

The number of people using the Trussell Trust’s foodbanks rose from 347,000 to 913,000 in a single year,...

'Technology can offer charities more than just online donations'

10 Apr 2014

Charities are focusing too much on using digital tools for fundraising instead of how technology can be...

Amnesty calls for 'full and frank disclosure' on alleged US surveillance

9 Apr 2014

Amnesty International has warned that alleged mass surveillance by the American intelligence agency NSA...

Virgin Money Giving launches app following year of growth

1 Apr 2014

Virgin Money Giving has launched an app for users after reporting that 30 per cent of traffic to its platform...

Join the discussion

 Twitter button

@CSFinance