Finance: Charity investment funds yield favourable returns

Helen Warrell

Charity investment funds have recovered losses from the past quarter to return moderate gains, according to figures from the third quarter of 2006 from WM Performance Services.

The survey, covering 328 funds with £10.9bn under management, found charity funds have gained 3.5 per cent after equity and bond market values recovered from previous falls.

The highest equity returns were in Europe (5.6 per cent) and North America (4.3 per cent). UK government, corporate and index-linked bonds rose by between 2.5 and 4 per cent.

John Hildebrand, head of charities at Investec Asset Management, said: "This is turning out to be another good year for charities invested in long-term assets. Strong earnings have also led to dividends being raised in real terms and have kept valuations, on most measures, below their long-term averages.

"Charities should be biased towards equities because they offer good value and are providing a rising income stream."

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