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Charity funds produce an impressive 10% average return says State Street

UK charities made an average investment return of 10.4% over the 12 months to 30 June, according to the WM Charity Fund Monitor from State Street.

The annualised return for the three years to the same date was 7.9%.

The best-performing asset class was property, returning 17%, while UK equities made 13.1%.

Overseas equities were the next best performers, returning 9.7%, while alternatives returned 8.9%, pooled bonds 5.3%, overseas bonds 5.1% and UK bonds 4.6%.

The worst performer was cash, returning only 0.4%.

David Cullinan, a consultant at State Street Global Services, said: “Returns for the average charity fund for the one year have been very robust at around 10%, led by the performance of risk assets – principally equities – which comprise the bulk of funds’ assets.

“Monetary asset returns – Gilts, for example – have been much more pedestrian.”

Cullinan noted that the second quarter of 2014 saw markets globally recording modest, but positive gains.


Read the rest of this article at Charity Times