Friends Provident Foundation to triple capital allocation

Author: FPF

Date: 30/08/2022

Friends Provident Foundation has today announced it will more than double its investment in award winning impact fund Snowball with immediate effect and will invest a further £1m for every £10m Snowball raises.

 

This forms part of the foundation’s new strategy, which puts greater focus on its investment activities to better utilise its whole endowment for mission. This includes via impact investing and shareholder and asset manager engagement. The foundation’s allocation to impact investing has increased from 10 to 33% of its endowment.

 

Snowball is a diversified, multi-asset class, impact fund of funds, which invests across the interconnected themes of social equity and environmental sustainability. It has an award-winning impact methodology and is ranked in the top 5% of all B Corporations globally for the governance which protects its impact mission, recently being awarded ‘Best for the World 2022’.

 

The foundation is joined by the Golden Bottle Trust, which today also announced it is to double its investment in the Snowball fund. Existing investors in the fund include Trust for London, The EIRIS Foundation, The Ian Taylor Family Foundation and City Bridge Trust who form a small but influential group leading the groundswell of charities who are choosing to integrate their investments with their charitable purpose.

 

A whole endowment approach brings immense mission value. Plus, we estimate our increased allocation to impact investing of 33% of our endowment will result in an estimated income foregone of just 0.46% compared to our existing portfolio. We believe this income foregone, the equivalent of a couple of grants per year, is excellent value for the significant contribution to mission and positive impact.”

 

Danielle Walker-Palmour, Director, Friends Provident Foundation

 

“Making and managing a portfolio of direct impact investments is resource intensive and may not be feasible for many foundations. This common barrier is one of the reasons we became a founding partner in Snowball five years ago. Now it is accessible to smaller investors and has established a successful track record of delivering social, environmental, and financial returns on investment, we are delighted to be supporting it to scale and challenge market incumbents with new best practice.”

 

Colin Baines, Investment Engagement Manager, Friends Provident Foundation