Investment strategy & performance


Investment Options

If you choose to have an invested charitable fund with the Scottish Community Foundation, you have a number of options.  You may choose to retain your current investment advisor with the SCF becoming the new client of the advisor, for the newly created fund.   

Alternatively, and particularly in the case of cash transfers, it would be suggested that the monies be invested into one of the SCF’s pooled funds. This is particularly relevant in cases where the new fund is of £25,000 or less as it allows for the pooling of the funds with other fund holders to achieve investment and cost efficiencies.

 

Investment Strategy & Policy
The Scottish Community Foundation is committed to prudent investment management strategies and fiscal policies, which we believe will lead to the long-term growth of our invested funds, whilst providing annual income for grant making. The investment objective is to maximise total return with a medium risk profile.

Our Finance Committee, appointed by the Foundation's Board of Directors, is charged with appointing a fund manager, formulating an investment strategy and objectives and monitoring the performance of the assets through time. At regular intervals, the Foundation's investment manager(s) report on performance and activity to the Finance Committee, which compares these results against the objectives set and nationally recognised investment performance standards.  

The Foundation’s current annual spending policy is 6% of the fund’s value. This enables grants to be made from the fund during your lifetime and in perpetuity.Averaged over the long term, the anticipated annual total return from equities (based on historic long term equity market returns) is in excess of 6% plus annual inflation*. In summary, after a 6% annual drawdown (5% grantmaking + 1% administration) any remaining interest and capital gains will be re-invested for future growth.

* These figures are based on historic data and past performance is not necessarily a guide to future returns. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.    

Investment Managers

Newton Investment Management Limited currently manage the Foundation's invested funds, the majority through their Balanced Bridge Fund. The Objective of the Balanced Bridge Fund is to provide a combination of income and growth in sterling terms from a diversified portfolio of UK and international securities. Over the long term the total return from equities has been some way ahead of that achieved by cash and bonds and thus the major part of the Fund is invested in equities. The bias is towards UK quoted shares balanced by international exposure and fixed interest holdings.


Latest Investment Returns
Newton Investment Management Limited manage the Foundation's pooled assets through their Balanced Bridge Fund. The Objective of the Balanced Bridge Fund is to provide a combination of income and growth in sterling terms from a diversified portfolio of UK and international securities. Over the long term the total return from equities has been some way ahead of that achieved by cash and bonds and thus the major part of the Fund is invested in equities.  The bias is towards UK quoted shares balanced by international exposure and fixed interest holdings.


newton investment chart


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Questions for finance?
If you have a specific question on how we manage funds please use this form to contact us.

Investment strategy & performance