Our work and mission build on the extraordinary generosity and vision of our co-founders Chris Hohn and Jamie Cooper.
It's an investment, not a gift
Since 2004, the Children’s Investment Fund Foundation has received voluntary income and donations of over $2.2 billion. Over the past decade, the endowment has grown to a value of $4.7 billion, after charitable activities and costs.
The Board of Trustees has developed an investment strategy for the endowment which provides for investing in a diverse portfolio of financial investments with a long-term horizon. The endowment investment objectives are to:
- seek an inflation-adjusted return of at least 6% per annum over a 10-year rolling period
- ensure appropriate liquidity and risk controls while also permitting illiquid investments with the potential for a high return
- diversify investments across a range of asset classes and industry sectors
The intention of the trustees is to maintain and increase the value of the endowment to be able to support charitable grant disbursements of at least $200 million in 2017. The aim is to achieve year-on-year growth in grant disbursements of 5% of average assets over a five year period.
The trustees do not wish to restrict the endowment’s investments to only those companies or sectors which reflect the foundation’s values and charitable objectives. However, they recognise that some investments in companies or sectors may be harmful to the mission to transform the lives of poor and vulnerable children. Therefore, investments in the following companies or entities are prohibited:
- Tobacco manufacturing and marketing.
- Food companies which do not commit to adopting the International Code of Marketing Breast Milk Substitutes.
- Companies that derive more than 10 per cent of revenue from extracting fossil fuels, excluding natural gas.
- Companies that derive more than 10 per cent of revenue from extracting natural gas, unless they have adopted a business strategy and plan to cut emissions to limit climate change to 2 degrees Celsius.
If a company in which the foundation is invested falls into one of these categories, our investment managers have 12 months to divest. However, there may be occasions when the trustees approve an investment in a prohibited category in order to encourage a company to change practices such as adopting the breast milk substitutes code or implementing a credible low carbon strategy.