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| VALUATION
OF FALL IN EQUITY INVESTMENTS SHOWS HUGE LOSSES |
05/01/04 |
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Charities
have seen the value of their equity investments fall by more than £3bn
over the past two years, according to a leading fund manager.
A study by Close Wealth Management claims that the sector's equity investments
fell by £3.27 billion, or 11%, equivalent to around £136.25m a month.
The worst period was between January 2002 and March 2003, when London share
prices hit a seven-year low and charities lost up to £8.6bn in equities,
a fall in value of around 29%.
Martin Smith, chief executive of Close Wealth Management, says: “Charities
have over half of their wealth tied up in investments and, with difficult
stockmarkets, a number of them have been forced to cut back on their services.
"Even though stockmarkets have recently improved, many charities still
have a long way to go before they recoup the losses they have had to endure
over the past 24 months.”
Close Wealth Management is calling for charities to review their investment
strategies to make sure that they are both realistic and in tune with their
objectives. In addition, it says they should also review their investment
managers.
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