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April 2021
 

Throughout the last decade, investors have enjoyed favourable market returns across virtually all asset classes, driven generally by buoyant equity markets and underpinned by ultra-accommodative monetary policy. The challenges of the last 10 years – trade wars, Brexit and the COVID19 pandemic, have only served as blips in the prevailing rise of investment markets. Against this background, most philanthropic investors have experienced strong returns during a period of subdued inflation. 

Key Findings

  • Over 43% of respondents identified market volatility and insufficient returns to meet their objectives as one of the top 3 key risks their organisation will face over the next 12months.
  • To address the challenge of a low yield environment 39% have said they will look to increase their allocation to real assets and private market investments over the next 12 months.
  • NFPs remain resolute in their focus on ESG factors as part of their investment strategy and governance. In fact, 79% of respondents already have a climate policy or are considering introducing one with the next 12 months.

3 Key recommendations

  • Review your strategy for a low rate environment
  • Don’t give up on diversification
  • Importance of ESG continues to grow – position for climate change

1 Action You Should Take Now

We encourage clients to undertake, where appropriate, a carbon-footprint analysis on investment portfolios as part of a broader assessment of exposure to climate policy risk, and then chart a course for alignment with global climate targets. 


 

Interested in more?

Read our 2021 investment survey for European Not For Profit Investors to find out the latest themes and challenges faced by NFP investors and importantly how they are addressing them.

If you would like to speak to our NFP team to discuss the report in more detail or how we can support your organisation please contact us here or speak to our team directly.


 

Meet the team

 

Paul Fleming

Head of Not for profit - UK

Amit Popat 

Amit Popat

Head of Not for profit - Europe & IMETA

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