MARLBOROUGH COLLEGE FOUNDATION FUND
2024 ANNUAL REPORT FOR DONORS
INTRODUCTION FROM THE CHAIR OF THE
INVESTMENT COMMITTEE
STEVEN BISHOP Chair of the Investment Committee and Old Marlburian (PR 1969-73)
Last year the College launched the Marlborough Difference Campaign for life-changing bursaries which aims to raise £75m to fund 100 free places by 2033. Growing the endowment is a key priority for the Campaign because this will provide a sustainable, long-term income for bursaries. It has therefore been wonderful to see the Foundation Fund more than double in value from £3m in 2019 to £8m this year. The number of donors who are supporting the endowment has also increased and so we are keen to ensure that we keep you updated with the progress we are making. I hope you find this first annual report, produced in conjunction with Rathbones, our Investment Managers, useful. Please do let us have any feedback as to how it may be improved and thank you for your continuing support for Marlborough and for our endowment.
BEN ENGLAND
IMPACT CASE STUDY
Daphne Crompton, who sadly passed away in 2020, made a generous donation in her will towards the Endowment Fund. She was keen to remember her son Andrew Crompton (C3 1977-81) who tragically died in 1995 whilst attempting to climb the Eiger, aged only 21. Daphne left enough money to endow a bursary in perpetuity. In September 2022 Ben England (PR 2022-24) became the first pupil to be awarded the Andrew Crompton Bursary to attend Marlborough College in the Sixth Form. The Bursary is awarded to a talented sports person, following in the footsteps of Andrew’s love for the outdoors. Ben has played football in the 1st XI whilst also excelling academically.
FUND PERFORMANCE
During
INVESTMENT COMMENTARY
Ann ual review to 30 June 2024
Over the course of the 12 months to June we saw a number of key investment trends materialise. Perhaps the most significant has been the concentration of equity returns, largely fuelled by investor excitement over Artificial Intelligence (AI) and its knock-on effects for the semiconductor (chips) industry, which will be essential for implementing AI at scale. On many measures, 2023 was the ‘narrowest’ year in equity markets since the late 1980s (as far back as we have records for) with returns concentrated in the hands of a few tech titans, since coined the ‘Magnificent Seven’. At the start of 2024, as the likelihood of recession receded in most developing markets, we saw market breadth improve and more companies participate in the market rally. However this breadth did not persist, and on the back of softer economic data, investors returned to sheltering in scale and that handful of companies benefitting from the artificial intelligence story.
Equities within the portfolio kept up well with global markets over the year, rising 18% and being the key driver of overall portfolio returns over the period. This was despite not owning Nvidia – up nearly 200% over the same time period and briefly becoming the largest company in the world in June 2024. Returns were supported across a number of sectors including an overweight to software, companies exposed to AI developments and the semiconductor cycle, as well as US banks and fast-growing healthcare companies such as Danish pharmaceuticals Novo-Nordisk –maker of the blockbuster obesity drug Wegovy.
FREQUENTLY ASKED QUESTIONS
How do we manage the endowment?
Another key theme over the past year has been inflation, and the resulting interest rate policies of global central banks. In the final months of 2023, US inflation (consumer price index) slowed from 3.7% (in September) to 3.1% (in November). This led markets to believe that the US Federal Reserve had finished its rate hiking cycle and would move towards cuts in 2024. This was a boon for global fixed income markets, which marked their best quarterly performance in over two decades in Q4. Since then, inflation figures have been more mixed, and investors have had to revise the initial cheer and pare back expectations as to how quickly central banks would start to cut rates. As a result, global corporate and government bond returns were slightly negative over the first half of 2024.
The last key theme has been unfolding geopolitical events, including the ongoing war in Ukraine and the outbreak of war in the Middle-East. This coincides with a year where almost half of the world’s population will vote in national elections (2024). Fuelled by ongoing geopolitical uncertainty and volatility, we have seen the gold price – a traditional counterweight to volatile markets - rise over 20%. The portfolio has therefore benefited from holding the asset.
In charity team news, we were delighted to announce the appoitment of James Ayre as ‘Head of Investment, Charities’. James joined Rathbones at the end of 2023 having spent 16 years at CCLA, most recently as Co-Head of Investments there where he was highly instrumental in building a strong performance track record, with a particular focus on charitable endowment-type mandates. We are excited to have James as part of the team.
Rathbones is the investment manager appointed to invest the Foundation Funds by the Investment Committee. This Committee exists to ensure the effective investment of the assets of the Marlborough College Foundation to maximise returns without undue risk. The investment committee reports to the Committee of the Marlborough College Foundation (as well as the Council of Marlborough College for College investments).
Who are the members of the Investment Committee?
The Investment Committee is Chaired by Steven Bishop (PR 1969-73). The other members of the committee are Tim Martin-Jenkins (B3 1961-65), Charles Macfadyen (LI 1985-90), Sabina Reeves (Member of Council) and Dermot Coleman (Former Parent).
Who are Rathbones?
Rathbones is one of the leading investment managers for charities and not-for-profit organisations in the UK. See below for more details.
What is Rathbone’s ESG policy?
Rathbone’s has a responsible investment policy to guide its investment process and stewardship approach. This includes four pillars: ESG integration, voting with purpose, engagement with conseqeuences and transparency. The Foundation Fund portfolio has an MSCI rating of AA as at 30th June 2024 (on a 7-tier scale from AAA – CCC). See https://www.rathbones.com/investmentapproach/responsible-investment for more details.
ABOUT RATHBONES
Charities have entrusted their investments with Rathbones for over 100 years, and our dedicated approach has seen Rathbones become one of the leading investment managers for charities and not-for-profit organisations in the UK. Rathbones were named “Charity Investment Manager of the Year – Institutional” at Citywealth’s 2023 Magic Circle Awards.
Our investment philosophy is focused on harnessing the power of investment markets to deliver returns compatible with inflation plus mandates. Our philosophy emphasises a long-term approach with a patient mindset. In addition, our approach
MANAGEMENT TEAM
JAMES AYRE Head of Investments, Charities
james.ayre@rathbones.com
+44 (0)20 7315 665
to portfolio management is flexible and dynamic, to allow for the incorporation of client specific nuances and requirements.
With a team of investment managers working exclusively for charities, we are responsible for £9.4 billion* in funds under management for more than 3,000 charities. Marlborough College’s dedicated investment managers are accountable for every aspect of the College’s portfolio, tailoring it to align with Marlborough College’s goals and principles.
*as of 30 June 2024
OLIVIA MARLOW
Investment Director
olivia.marlow@rathbones.com
+44 (0)20 7399 0174
ELLIOT BANCROFT
Investment Director
elliot.bancroft@rathbones.com
+44 (0)20 7399 0330
JAMES PARRY
Investment Manager
james.parry@rathbones.com
+44 (0)20 7399 0246
Marlborough College Foundation
Marlborough College, Bath Road, Wiltshire SN8 1PA 01672 892588 development@marlboroughcollege.org
The Marlborough College Foundation is a registered charity (1061798) established to provide