Patchy growth, low inflation and worries of a collapse in the Chinese economy all contributed to what was a frustrating and extremely challenging year for investors, including the Foundation which starts the new year with a corpus approximately $3 million lighter than this time last year.
With the mid-term economic outlook not much better, the Directors have raised concerns as to whether maintaining the Foundation’s aggressive, high-growth strategy remains appropriate.
This report has been prepared with the view to assisting the Board of Directors in evaluating The Foundation’s existing strategy, placing particular emphasis on ensuring that portfolio risk is managed appropriately.
We also provide some feedback in reply to the Directors’ enquiries around the expected impact from introducing an “ethical” filter to The Foundation’s portfolio.
In the interest of readability, we have focused this report on our key findings and recommendations, with an extended discussion of some pertinent issues provided in the appendices.
I welcome any questions or comments.