We tend to partner with charities with a long-term horizon, investing sustainably on their behalf to ensure they have a lasting impact for generations to come.
Our objective is to preserve and grow the wealth of our clients over multiple generations. Through our investments, we aspire to preserve both the wealth of future generations and the environment and society they will inherit.
We've always invested in long-term, sustainable business. To discover how environmental, social and governance issues are embedded in our approach to wealth management, please review our Sustainability and Stewardship Report for 2022.
We often speak about our bottom-up investment approach. However, in this Quarterly Letter, we (ironically) take a look at this approach from a top-down perspective, outlining our investment objective, as well as the people and processes that work to achieve this.
Charities in the UK can invest in the stock market, subject to certain regulations and guidelines. They can choose to invest their funds in shares and other types of investments as part of their investment strategy.
However, charities are required to act in accordance with their charitable purposes and invest carefully. They must comply with legal and regulatory requirements, seek professional advice and they have a duty to protect the assets for charitable purposes.
A Charity Authorised Investment Fund is a type of investment fund specifically designed for charitable organisations in the UK. It is regulated by the Financial Conduct Authority, the City watchdog, and allows multiple charities to pool their investments in a collective investment scheme.
These funds must have professional management and adhere to specific rules and restrictions set by the Charity Commission, another watchdog. They allow charities to diversify their income sources and access a wide range of investment opportunities.
Charities should have a strategy in place before they start investing. This policy should outline the principles and objectives for managing the charity's investments.
The policy should provide guidance on how the charity's funds should be invested, including the level of risk tolerance, asset allocation and ethical considerations. This helps ensure transparency, accountability and effective management of the charity's financial resources.
Strategy Blog
CBO long-term US debt projections have improved since 2021 due to small assumption changes, highlighting forecast sensitivity, while rising bond yields reflect inflation and interest rate dynamics, not fiscal concerns.
Market Perspective
Global markets remain resilient despite geopolitical tension and rising energy prices, supported by strong earnings and AI-driven optimism. However, elevated valuations, uneven sector dynamics and evolving inflation risks reinforce the importance of disciplined, long-term positioning within an uncertain macroeconomic environment.
Insights
A long-term, disciplined approach to investing prioritises quality companies and wealth preservation over short-term trends. Amid significant changes to tax rules—particularly around inheritance and estates—careful planning, regular review, and close collaboration with advisers remain essential to achieving sustainable outcomes.