Several charitable foundations have collectively agreed to put up to £50m from their endowments in a new impact investment initiative designed to help young people.
The group has challenged investment service providers to create a new portfolio for their endowments that prioritises future generations, alongside financial returns.
Funders including the Children’s Society, Joseph Rowntree Foundation and Friends Provident Foundation are working with an advisory group of young adults – the Future Generations Panel – to ensure the voices of young people impacted by investment decisions are heard.
They plan to issue an open call for proposals from investment firms this autumn before inviting shortlisted entrants to present their ideas at a live event at London’s Barbican Centre in March 2026.
The Endowments Investing Challenge follows a similar project run by the Friends Provident Foundation, Blagrave Trust and Joffe Trust in 2020 called ESG Investing Olympics.
Some £33.5m was invested through the fund, which now manages assets worth over £750m.
‘Breaking new ground’
Danielle Walker Palmour, director of Friends Provident Foundation, said: “As investors, we know that our investments can have negative as well as positive impacts.
“Often, we are more comfortable acknowledging the positive side. We aim to open up the conversation about the impact of what we do now on those who will follow us.
“The interest in the Future Generations Panel has blown us away: over 750 young adults applied.
“They told us that they want our investments to help tackle issues including climate emergency, youth mental health, lack of community, housing, education, and inequality, to name but a few.
“Through the advisory panel and a survey, we’re bringing the opinions of those normally excluded from decision-making to the table.”
Eli Manderson Evans, CEO of the Blagrave Trust, said: “This project is breaking new ground in the UK philanthropic space by putting young people at the heart of how endowment investments are shaped.
“It recognises that decisions about capital must be accountable not just to young people today, but to future generations whose lives will be shaped by them.
“We are excited to co-create this work with funders who share our belief that philanthropy must confront the tensions in our positionality and role when it comes to investment practices — and to open up the investment industry to young people as part of that process.”
Investment managers welcome scheme
A trade body for investment managers welcomed the initiative.
Miranda Seath, director of market insight at the Investment Association, said: “It is great to see young people discussing investment and the positive impact it can have on their futures and that of the world around them.
“Our data shows that young people are leading the charge on money conversations and are increasingly taking the reins of their own financial futures.
“Gen Z (42%) and Millennials (37%) are almost twice as likely to talk about money and finances at the dinner table than Gen X (23%) and Baby Boomers (21%).
“However, a lack of confidence persists when it comes to young people's investing behaviours and ability to manage finances as almost a third of Gen Z (31%) and Millennials (28%) report feeling uncertain about managing their current wealth.
“Our priority is to create a culture of inclusive investment so that young people understand the benefits of long-term investment and how it can help them meet their financial goals.”
