FINANCE NEWS: CAF urges charities to be extra wary of alternative classes

Charities should think very carefully before they are lured into investing in alternative asset classes such as hedge funds and property, a leading sector investment strategist has warned.

Fund managers Cazenove launched a common investment hedge fund for charities last month, but the head of investments at Charities Aid Foundation John Rogerson has warned the sector to be aware of the inherent risks involved.

"They appear superficially attractive as they promote the idea of a constant positive return in falling markets. But to deliver such returns investment managers have to take risks. Past evidence suggests that big risks can be taken and the fallout can be substantial if these bets go wrong,

he said.

Investing in property was also viewed as dubious because the market is liable to dip after a period of sustained out-performance, Rogerson said.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners


Expert Hub

Insurance advice from Markel

Guide: What insurance does your charity need?

Guide: What insurance does your charity need?

Partner Content: Presented By Markel

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now