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Investment Approach

We have developed an investment approach that we believe will help us to achieve our vision. We aim to preserve capital and maximise the funding available for granting, with the flexibility to respond to opportunities as they arise.

The Statement of Investment Policy and Objectives (SIPO) prepared by the Trustees of Foundation North sets out the objectives, policies and beliefs governing decisions about investments in relation to the Foundation’s assets.

This SIPO takes account of the requirements of:

  • the Foundation Deed constituting the Foundation;
  • the Trustee Act 1956; and
  • the Community Trusts Act 1999.

Our strategic objectives for our investments are to:

  • ensure prudent management of the Foundation’s investment portfolio
  • maintain the real value of the capital of the Foundation in relation to inflation
  • ensure a stable level of grantmaking over time by maximising the total return that can be provided by the investments of the Foundation, subject to a prudent level of risk
  • to maintain fairness between present and future generations.

In pursuit of these objectives we will continue to seek international investment best practice by working with appropriately qualified investment advisers to develop and implement strategies designed to achieve our strategic objectives.

Prudent management of the investment portfolio means that risk will be managed conservatively and that over time spending will be controlled within policy guidelines and budgetary constraints.

Investment risk will be managed through the diversification of the investment portfolio across asset classes, fund managers, and geographical regions. The portfolio’s currency risk will be prudently managed.

The application of the spending rule will determine the maximum amount to be spent on the fulfilment of the annual granting programme and to meet current operating costs. However, spending will be constrained by budgetary requirements and the level of reserves held by the Foundation.

Financial markets are likely to remain volatile during the early years of the Strategic Planning period. This volatility could favourably or unfavourably impact on the Foundation’s income stream. Prudent management of the investment portfolio will ensure that the Plan’s objectives are met and vision achieved.