Charity investments rose 15.5 per cent in 2013

23 Jan 2014 News

The value of charity investments rose by 15.5 per cent in 2013, according to figures released yesterday by market analysts State Street.

The value of charity investments rose by 15.5 per cent in 2013, according to figures released yesterday by market analysts State Street.

The State Street Charity Fund Universe results are based on a survey of most major investment houses, and include results up to November, and estimates for December based on the performance of overall markets.

The figure show that most of the rise was due to an increase in the value of equities – stocks and shares – which make up more than half of charities’ investment portfolios. The value of UK equities rose 22.1 per cent, and overseas equities rose 18.9 per cent.

Property rose by 9.5 per cent,  while cash rose in value by 0.7 per cent, but UK bonds fell in value by 0.4 per cent.

Richard Macey, associate director at M&G investments, said 2013 had been characterised by a move towards increased equity investment by charities, and that he expected this trend to continue while interest rates remained extremely low.

“We’re seeing a continuing need for high and reliable income levels,” he said. “That’s pushing charities towards equity investment, because they’re still unable to get any money, really from cash.

“We’re also seeing increasing pay-outs from companies as the recovery begins to gather pace.

“The move towards equities means 2013 was a really good year for charities, and we’re hopeful that 2014 will see that trend continue, although we’re warning people they can’t necessarily expect another year as good as the one we’ve just had.”

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