The company says it will raise the yield on its core investment funds by means of improvements in the investment process and a focus on higher income in the selection of equities.
Michael Quicke, chief executive of CCLA, said that yield on its long-term investment funds should increase by 0.5 per cent. He said a consultation with charities had revealed a desire for the highest possible income from funds consistent with preserving the capital value of investments. The new strategy will focus on asset allocation and stock selection.
The strategy was revealed last week during an event at the Tate Modern for CCLA's 50th anniversary. The firm invests more than £2bn on behalf of 45,000 clients.
Phil Hope, Minister for the Third Sector, backed the new strategy. "This extra investment will undoubtedly aid what I believe is the objective of both CCLA and the work I am doing as minister," he said. "We both want to develop an environment that enables the third sector to thrive. A big part of this, and something that excites me, is the development of social investment."
- CCLA commits to increasing investment income of charity clients by £10m a year
- Investment strategy will be based on asset allocation and selection of high-yield stocks
- Yield on long-term investments should increase by 0.5 per cent.