How can charities use their assets to further their objectives?

From Charity Finance:

Can charities which have investments use them to further their charitable objectives? Is engaging with poor performers on areas such as environmental behaviours a more useful tool than broad exclusions?

Kate Rogers, co-head of charities at Cazenove Capital, introduces the discussion by saying she really believes in the power of investment to create positive change. “Charities and foundations that invest can use their influence to push for progress. This is ‘active ownership’ and is a key lever in creating positive impact, particularly in listed equity markets where they own a stake in a business. Trustees most often delegate their investment decision-making to fund managers, and in doing so also delegate any active ownership activity, like engagement and voting.

“Charities are increasingly adopting responsible investment (RI) practices,” she adds. “More than 75% of charity investors have an investment policy that connects mission and aims with investment.”

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