Rathbones has launched the Rathbones Charity Growth & Income Fund (CAIF), a new charity authorised investment fund for UK charities.
The fund is managed by James Ayre, charity fund manager at Rathbones, as part of the multi-asset team led by David Coombs, head of multi-asset investments at Rathbones.
Ayre said: “Trustees tell us their biggest challenge is balancing certainty of income with the responsibility to protect reserves.
“This fund is designed to give them confidence in both – delivering today’s spending power while growing capital for tomorrow.
“By combining Rathbones’ heritage in charity investing with our proven multi-asset expertise, we’ve built a flexible solution tailored to the evolving needs of today’s charities.”
The fund invests in equities, bonds and alternatives, aiming for long-term capital growth of consumer price index plus 4% and an annual distribution of 3% to help trustees with budgeting and ongoing costs.
It uses a total return approach to reduce reliance on income-only strategies and aims to help preserve reserves.
Coombs said: “Charities need investment partners who understand that capital has to be resilient across cycles as well as productive in the long term.
“The new CAIF, run by James, will benefit from the strength of our multi-asset approach, which is designed precisely for that balance – drawing on a wide range of asset classes to help smooth volatility, protect reserves and support sustainable distributions.
“The CAIF allows us to apply that discipline in a structure built specifically for the sector, reflecting our long heritage and deep understanding of managing charity portfolios.”
