Access – The Foundation for Social Investment has published its latest Endowment Impact Report. The report reveals that in 2023 35% of its endowment was directly invested in UK-based charities and social enterprises.
In total, 53% of Access’s portfolio was allocated to organisations driving significant social impact. This demonstrates that it is possible to generate positive change while achieving strong financial returns, even amid profound economic uncertainty.
Access was given a £60 million endowment by Government in 2015 to spend over ten years on funding programmes which help charities and social enterprises to engage with the social investment market and become investment-ready. The endowment was originally given by the Cabinet Office and is now overseen by the Department for Culture, Media and Sport following the relocation of The Office for Civil Society in 2016.
Access manages the portfolio in line with its “total impact” strategy. This approach looks at all the ways to achieve impact, including aligning their asset management with their broader charitable mission.
Through its “bull’s eye model”, Access targets finance to socially and environmentally focused organisations, while also ensuring the financial returns needed to fund its grant-making. Where possible, Access prioritises investing in charities and social enterprises delivering social impact in the UK. Over the lifetime of the portfolio, allocations to charities and social enterprises delivering impact in the UK steadily rose to above 40% as the portfolio was being invested and for 2018, 2019 and 2020 remained above that level.
Managed by Rathbones, the investment portfolio totalling £17.98 million continued to outperform market benchmarks in 2023. Despite the spend-down nature of the endowment and a challenging macroeconomic environment marked by stagnant growth and inflation, Access’s diversified portfolio has proven that high-impact investments can achieve financial success while driving transformative change in communities.
Chair of the Endowment Investment Committee at Access, Martin Rich said:
“We are proud that 35% of our portfolio is still directly invested into UK charities and social enterprises, even though many of the bonds we have held have matured. This reflects our mission to channel capital to those organisations that are driving lasting and positive change. The 2023 results show that it is not only possible but also profitable to invest in high-impact areas, even during difficult economic times.”
Bryn Jones, Head of Fixed Income at Rathbones said:
“While 2023 was a year of uncertainty in global markets, we are pleased to report that the Access endowment has continued to outperform market averages. This is a testament to the resilience of the investment approach, which aligns financial performance with the broader goal of social impact.”
Sarah Teacher Co-CEO at the Impact Investing Institute said:
“It’s wonderful to see Access’s Endowment Impact Report demonstrating the transformative power of an impact-focused investment approach and highlighting that financial returns and meaningful social change are not mutually exclusive. We hope that this acts as a beacon that inspires other investors to utilise the power of all their assets to deliver tangible, positive impact while maintaining robust financial performance.”
The Endowment Impact Report highlights the social and environmental themes supported by Access’s investments during 2023, including:
- A more inclusive society and economy: including the provision of support or accommodation to 73 individuals with learning disabilities and management of 50 social housing properties
- Positive climate action and energy security: including renewable energy generation to power 122 average UK homes, avoiding 142 tonnes of GHG emissions
Notes
In 2023 35% of Access’s endowment was directly invested in UK Charities and Social Enterprises.
Beyond those investments, Access also allocated 53% of its portfolio to organizations focused on delivering social impact, furthering the foundation’s “total impact” approach.
These investments span a wide range of sectors, including social housing, services for individuals with disabilities, elderly care, affordable housing, and microfinance for emerging economies.
Find out more about Access’s total impact approach here.
Read the 2024 Endowment Impact Report here.
