Value of charity investments on the rise

UK equities have been the best-performing class over the last three months, new figures suggest

The value of charity investments rose by 8.8 per cent in the third quarter of 2010 and by 11.3 per cent over the past 12 months, according to figures produced by the market analyst WM Company.

The figures are based on data provided by charity investment managers covering the results of their funds up to the end of August, and on estimates based on market averages for September.

Over the past three months, UK equities have been the best-performing class, rising by 13.6 per cent, and by 12.5 per cent over the past 12 months.

The figures show that property rose by 2.2 per cent over the quarter, but by 22.5 per cent over the past 12 months, making it the best-performing asset class over the year.

But property was still down by 6.7 per cent compared with three years ago, while equities were also down by 1 per cent.

John Kelly, head of client investment at not-for-profit investment house CCLA, said he expected most charities to be pleased with their results over the quarter.

"There's an indication that income flows are getting a bit better," he said. "Charities are focusing on equities and property because they produce higher incomes.

"The rise in equities also reflects a much more even spread than a year ago, when most of the rise came from a handful of big companies."


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