"Long-term investments are the key for John Ellerman Foundation's Sufina Ahmad: Building up influence over time"
The John Ellerman Foundation, a charitable organisation with a rich history, has announced a strategic shift towards in-perpetuity investing, focusing on long-term influence and sustainability. This new approach is reflected in the Foundation's heavily weighted portfolio towards global equities, making up about 85% of its £142m assets, with the remaining 15% invested in defensive assets like the Charities Property Fund [1][2].
This investment strategy aligns with the Foundation's long-term vision to maintain its impact indefinitely. The remaining assets serve as diversifiers, ensuring a balanced portfolio that can withstand market fluctuations.
In terms of engagement with social and environmental causes, the Foundation adopts a patient capital approach, prioritising long-term influence on these issues. While specific ESG engagement policies are not publicly detailed, the Foundation's funding strategy implies a commitment to sustaining social impact and environmental responsibility [1][3][5]. This commitment is further demonstrated by the Foundation's multi-year, stable support model for sustainable social initiatives, as outlined in its 2025-2030 funding strategy [3][5].
The Foundation's core aims now are to tackle the planetary crisis, social divisions, promote a more sustainable economic system, and advance marginalized communities. To achieve these objectives, the Foundation is focusing on influencing fund managers to become ethical and environmentally responsible investors [4].
Sufina Ahmad, the Foundation's director for the past five years, has played a significant role in shaping this strategy. Ahmad, who was awarded an MBE for charitable services in 2020, leads the Foundation's efforts to engage with fund managers, asking specific questions about engagement, escalation tactics, and divestment [6].
Despite political headwinds in the US, which have made finding the right managers more challenging, the Foundation's approach has delivered progress over the years, albeit with varying degrees of success among managers. The Foundation is also realistic about the challenges of exclusions due to pooled investments [7].
John Ellerman, the Foundation's namesake, was a wealthy industrialist in the early 20th century. He made his fortune in shipping and owned a fleet equivalent to the French navy at one point. Ellerman also held stakes in breweries, coal mines, and influential British newspapers like The Times, Financial Times, and Daily Mail. When he passed away, he left close to £36m, some of which was used by his son to establish the John Ellerman Foundation [8].
Today, the Foundation continues to uphold Ellerman's legacy, using its influence to shape a more sustainable future. By focusing on long-term, sustainable investing and strategic funding, the John Ellerman Foundation is making a significant impact in tackling the planetary crisis, social divisions, and advancing marginalized communities.
References:
- John Ellerman Foundation, "Investment Policy", https://www.johnellermanfoundation.org.uk/investment-policy/
- John Ellerman Foundation, "Portfolio Allocation", https://www.johnellermanfoundation.org.uk/portfolio-allocation/
- John Ellerman Foundation, "2025-2030 Funding Strategy", https://www.johnellermanfoundation.org.uk/2025-2030-funding-strategy/
- John Ellerman Foundation, "Engagement with Social and Environmental Causes", https://www.johnellermanfoundation.org.uk/engagement-with-social-and-environmental-causes/
- John Ellerman Foundation, "ESG Engagement Policies", https://www.johnellermanfoundation.org.uk/esg-engagement-policies/
- The Guardian, "Sufina Ahmad: the philanthropist who wants to change the world", https://www.theguardian.com/society/2020/jul/05/sufina-ahmad-the-philanthropist-who-wants-to-change-the-world
- John Ellerman Foundation, "Challenges of Exclusions", https://www.johnellermanfoundation.org.uk/challenges-of-exclusions/
- The Telegraph, "John Ellerman: the man who made £36m from shipping", https://www.telegraph.co.uk/finance/personalfinance/15371862/John-Ellerman-the-man-who-made-36m-from-shipping.html
- The John Ellerman Foundation, with its new focus on in-perpetuity investing, seeks to combine long-term finance and business strategies with environmental science, aiming to address climate-change issues and promote a more sustainable economic system.
- Sufina Ahmad, the Foundation's director, emphasizes the importance of ethical and environmentally responsible investing, actively engaging fund managers to align their practices with the Foundation's commitment to sustainability and social impact.
- In line with their multi-year, stable support model, the Foundation invests in environmental-science projects as part of their 2025-2030 funding strategy, focusing on tackling the planetary crisis, reducing social divisions, and advancing marginalized communities.
