The Investment Committee is appointed by the National Trust’s Board of Trustees. It comprises members of the Board of Trustees and at least two other members appointed by the Board.
The Committee sets and oversees the investment strategy for the Trust’s £1.5bn investment portfolio which is managed on a total return basis. It is responsible for recommending to the Board an appropriate investment policy statement and advising the Board on the appointment of external investment managers and monitoring performance on a quarterly basis. The Committee also recommends a suitable level of distribution from the investment portfolio to fund the Trust’s conservation work.
The Committee operates two working groups: The Stewardship & Engagement Working Group meets regularly with fund managers to assess alignment with ESG goals, encourage improvement or support disinvestment. The group also represents the Trust in the Institutional Investors Group on Climate Change. The Manager Selection and Monitoring Working Group supports the Committee in selecting and monitoring managers.
In the context of the Trust’s strategy announced last year, People and Nature Thriving, we have ambitious fundraising plans and, over time, we expect those investments to grow and generate higher returns. The investment strategy favours return-generating asset classes over the long term, while reducing risk through diversification of asset classes.
The Trust employs several active investment managers to deliver this strategy, supported by an investment adviser, with the objective of generating a return of CPI +3.5% annually (net of investment management fees).
The Committee remains committed to aligning the Trust’s portfolio with the wider environmental values of the Trust, particularly Net Zero by 2030, and is proud of the success achieved to date in so doing.
The Investment Committee’s full terms of reference are available here.