At Trust for London, our mission is to tackle poverty and inequality in London. We are lucky to have a large endowment of around £260m, which is invested in shares and commercial property.
Some charities can prioritise investing to further their mission before investing for financial return. Trust for London is slightly more complex as we have a permanent endowment, intended to have longevity – but also our financial returns fund two distinct charitable needs, poverty and inequality in London, and the Church of England churches and diocese in London. We have a duty to make a financial return from the investments for both these causes and cannot prioritise one cause if it will mean the other will receive less funding for grants.
Our investments can and should also be used to support our mission while maintaining a financial return to fund our grant making.
We have recently launched our new investment policy. The investment policy sets out how we manage and invest our money, including what we want to achieve with our investments, our risk appetite and how we make decisions. Our new policy has an increased focus on investing in line with our mission, using our power as a shareholder and collaborating with others.
Mission focused
Foundations have historically used grant making as their main tool to achieve their mission, but our investments can and should also be used to support our mission while maintaining a financial return to fund our grant making. Our investment policy is now clearer and more intentional about aligning our investments and our values. We’re also lucky to have a separate pot of money, from the funds allocated to us in 1986 by the Greater London Council. These funds are not a permanent endowment and are to be used only for tackling poverty and inequality in London. We use them for social investment,which enables us to create social impact without the need to generate financial return.
Using our voice
Being an investor also gives us shareholder status, and so we have power and influence. We’re committed to using our influence through voting at company AGMs where resolutions align with our mission and values, and supporting those that create positive change. We are proud to have recently co-filed a shareholder resolution with the support of Share Action and other investors, calling for companies to be more transparent and to share reporting and analysis on adopting the real Living Wage. Many Londoners are working hard and still trapped in poverty. Paying the London Living Wage is one of the simplest and most effective ways employers can help change that and we commit to using our power as a shareholder to push for change where we can.
From engagement to exclusion
Historically, we’ve taken an engagement-first approach, believing that change is often best achieved through dialogue. This means that we’ve felt it’s important to have a seat at the table and to push for change, rather than removing ourselves from the room entirely. That hasn’t changed, but there are areas we no longer feel comfortable being invested in at all. Our updated policy introduces clear exclusions for certain sectors and activities that fundamentally conflict with our mission. We will still engage where we can drive change, but we’re also drawing firm lines.
Strength in partnership
We recognise the power we hold — and the limitations too. No single funder or investor can transform systems alone. We’re committed to working collaboratively across the sector, learning from others, and amplifying impact through shared action. In a complex investment landscape, we’re stronger together. We work closely with the Charity Responsible Investment Network (CRIN – part of Share Action) and the Association of Charitable Foundations to have a greater impact together.
This new investment policy is a step forward. It’s about holding ourselves accountable, being bolder with our investments, and pushing for the systemic change Londoners need and deserve.
