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Investment Management for Charities

EdenTree is a boutique investment manager with a focus on responsible and sustainable investments. We understand that a charity’s primary objectives usually include preserving capital against inflation and producing a strong and reliable income while receiving an investment management service from a known and trusted team, who exceed their client servicing expectations and consider their individual investment objectives in line with their reputation.

Charities Like Yours

EdenTree can create a solution to match your charity’s specific needs. Through our specialist charity funds we can help smaller charities who want to ease their administrative burden and for larger charities we can offer segregated portfolios that reflect their individual needs. Our multi solution approach means that we are able to provide solutions to charities with anywhere from £1000 to over £50 million to invest.

We work with charities across the sector; our clients represent education, faith, arts and culture, hospice, community, animal, and environmental charities.

Charities are a part of our ethos and our history; as part of the Ecclesiastical Group (EIG) our ultimate owner is the Allchurches Trust Limited (ATL). Being owned by a charity gives us unique perspective on the sector as a whole and a large portion of our profits go towards funding charitable work. From 2013 to 2016 the group successfully donated £50m to charities with EdenTree being a major contributor. We are on track to double this from 2016 to 2020.

Managing Your Investments

Many charity trustees also now recognise that their donors, beneficiaries and other stakeholders are increasingly concerned that a charity’s mission is aligned across all activities in order to prevent any undue reputational damage. This includes avoiding potential reputation-damaging investment choices. EdenTree’s responsible investment screening and due diligence process helps to ensure that your investments are aligned with your mission by considering potential investments against nine pillars including Business Ethics, Community, Corporate Governance, Education, Employment & Labour, Environmental Management, Human Rights, Urban Regeneration and Health & Wellbeing.

Our Methodology

We are value investors who help charities to preserve capital and grow income while emphasising absolute returns over relative performance. Our award winning process assesses companies on investment merit favouring strong, well run companies with well-developed approaches to managing Environmental, Social and Governance (ESG) risk.

We manage two specialist Charity funds, the Amity Balanced Fund for Charities and the Amity Global Equity Fund for Charities, however charities are welcome to invest in our other funds and, for larger charities, we are also able to design fully bespoke segregated portfolios.

The Amity Balanced Fund for Charities looks to grow the value of the capital in line with inflation while producing a strong income (currently paying over 5p on the £1). It invests responsibly in a diversified portfolio of UK and international equities and fixed interest securities. The companies in which the fund invests are all screened positively and negatively in accordance with our Amity screening process.

The Amity Global Equity Fund for Charities looks to deliver longer term capital growth and a reasonable income (currently paying over 3p on the £1) from a diversified portfolio of UK and International equities. The companies in which the fund invests are all screened positively and negatively in accordance with our Amity screening process.

Our segregated portfolios utilise a range of UK and Global equities, Fixed Interest securities and alternatives, all of which are screened for both ethical and financial viability. As a client, you will have a dedicated relationship manager and be in direct contact with your fund manager.

Our Performance

 EdenTree believe in investing for the longer term and underpinning total return with income as this is more sustainable and reliable for charities who often need to set budgets more than a year in advance.

While investment values can go up or down and past performance is no indicator of future returns most often charities ask us to benchmark their investment performance over the longer term against inflation plus a certain rate. Doing so allows them to accurately judge how their investments might have performed against inflation and, where income is required, how drawing down funds or taking income might have affected their overall capital value.

The graph and table below show how our charity funds’ total return performance against CPI+3.0% since inception (April 2011). On an annualised basis, as indicated in the table below, the Amity Balanced Fund and Amity Global Equity Fund have outperformed CPI +3.0% by 1.2% and 1.7% every year. All performance is shown net of fees.

graph 1


Figure 1: Total Return and CPI +3.0% through to 31 January 2019. Fund Inception date 04 April 2011. CPI +3.0% data is rebased to 100 from 04 April 2011. Source: EdenTree; Office of National Statistics


   Cumulatative 1 Year Annualised 3 Years  Annualised 5 Years  Annualised Inception 
Amity Balanced Fund for Charities  -1.7% 6.0%  5.8%  6.1% 
Amity Global Equity Fund for Charities  -1.5% 12.5%  9.4%  6.6% 
CPI +3.0%  4.9% 5.3%  4.5%  4.9% 



News & Events

Throughout the year we run seminars for trustees and senior executives that help charities to remain up to date with charity regulation and best practices. These complement the thought leadership research that our fund managers and responsible investing team provide throughout the year. You can visit our Insights page to read more. 

We partner with esteemed charity law, accounting and regulatory specialists as well as charity sector umbrella groups such as the Association of Charitable Organisations (ACO), Charity Finance Group (CFG), Association of Provincial Bursars, National Cathedral Conference, National Council for Volunteer Organisations (NCVO) and the Institute of Chartered Accountants of England and Wales (ICAEW) to provide our charity clients with access to the most up to date learning and to ensure that we are aware of the changing regulation that affects our clients.


Charity Seminars

In our 28 March panel discussion, Charity Risk Management: Safeguarding and Reputation, representatives from Barlow Robbins, solicitors, Sayer Vincent, accountants and EdenTree Investment Management, will explore several on-going threats that charities face. For more information please contact Caroline Gee, Charity Business Development Manager.


Charity Conferences

We will be participating in the following conferences. Please stop by our booth and say hello.

 

 February 2019 CFG Midlands Conference  Birmingham 
April 2019  Civil Society Charity Trustees Exchange London 
May 2019  Association of Charitable Organisations (ACO) Annual Conference  London 
May 2019  Charity Finance Group (CFG) Annual Conference  London
June 2019 ICAEW Charity Conference  London 
July 2019 CFG Northern Conference  TBC
October 2019  Association of Provincial Bursars  Hertfordshire 
October 2019  Lee Bolton Monier-Williams Annual Schools Conference  London 
October 2019 Financial Summit  London 
November 2019  National Council for Voluntary Organisations (NCVO) Trustee Conference  London 

 

 

The value of an investment can fall as well as rise as a result of market and currency fluctuations, you may not get back the amount originally invested. Past performance should not be seen as a guide to future performance. If you are unsure which investment is most suited to you, the advice of a qualified financial adviser should be sought. EdenTree Investment Management Limited (EdenTree) Reg. No. 2519319. Registered in England at Beaufort House, Brunswick Road, Gloucester, GL1 1JZ, UK. EdenTree is authorised and regulated by the Financial Conduct Authority and is a member of the Investment Association.