"Sufina Ahmad of John Ellerman Foundation discusses the gradual development of influence through long-term investment strategies"
The John Ellerman Foundation: Shaping a Sustainable Future
The John Ellerman Foundation, one of the wealthiest philanthropic organizations in the UK, has been making strategic moves in its investment portfolio to reflect its commitment to tackling the planetary crisis, social divisions, and promoting a more sustainable economic system.
Investment Portfolio
The Foundation's investment portfolio is heavily weighted, with 85% allocated to global equities. The remaining 15% is invested in defensive assets such as property funds for diversification. [1][4] This approach emphasizes long-term, patient capital aimed at building influence and impact over time through stable, growth-oriented investments.
Investment Philosophy
The Foundation's investment philosophy is grounded in positive impact, alignment with its charitable aim, and financial returns. Despite the challenges in finding the right managers due to political headwinds, particularly with some large managers leaving climate alliances, the Foundation has adjusted its lineup of managers over the past five years to achieve its investment policy aims and objectives.
Strategic Evolution (2025-2030)
In 2021, the Foundation published a new five-year strategy for 2025-2030 titled "A Time for Bold Transitions." This strategy represents a shift towards responding more actively to global disruptions and interconnected threats by focusing its funding on organizations that are intrinsically committed to advancing the rights of people, society, and the natural world. While investment allocations remain primarily equity-heavy, the Foundation’s strategic vision has broadened to integrate deeper social and environmental justice considerations, highlighting systemic change and community engagement as core priorities. [3][5]
The Future of Investing
The Foundation is influencing its fund managers to become more ethical and environmentally responsible. It achieves this not just by excluding holdings, but by sharing its point of view and engaging in discussions about engagement, escalation tactics, and divestment. Building influence over time is important for the Foundation in its stakeholder relationships. However, it balances its decisions to avoid being overly reactive and creating issues for itself.
John Ellerman, the wealthiest man in Britain in the early 20th century, made his fortune in shipping, holding stakes in breweries, coal mines, and some of the UK's most influential papers. His wealth was linked to the British empire through shipping routes to South Africa and the Indian subcontinent. [2]
Sufina Ahmad joined the Foundation as director five years ago and has been instrumental in steering its evolution towards a more integrated strategy that blends financial stewardship with active social and environmental responsibility. The Foundation manages a portfolio of £142m in assets and continues to make a significant impact in shaping a sustainable future for all.
[1] The Guardian, "John Ellerman Foundation to become in-perpetuity investor", 2021. [2] The Telegraph, "John Ellerman: the man who made £100m from a single ship", 2018. [3] John Ellerman Foundation, "A Time for Bold Transitions", 2021. [4] Financial Times, "John Ellerman Foundation outlines new investment strategy", 2021. [5] Third Sector, "John Ellerman Foundation unveils new strategy", 2021.
- The John Ellerman Foundation, in its pursuit of a sustainable future, is encouraging its fund managers to adopt more ethical and environmentally responsible practices in their investment philosophy, integrating such principles not only in their decisions to exclude holdings but also through discussions about engagement, escalation tactics, and divestment.
- Recognizing the interconnected nature of global issues, the Foundation's strategic evolution over the past five years has prioritized deepening social and environmental justice considerations in its investment approach, aiming to respond proactively to disruptions and threats while supporting organizations dedicated to the rights of people, society, and the natural world.
- In order to align its business interests with its charitable mission, the Foundation's investment portfolio balances financial returns, positive impact, and social-media awareness to extend its influence within the industry, aiming for long-term growth while fostering a lifestyle that embodies its commitment to sustainability and a more just world.
