A summary of how our investments performed in 2023.
The market value of the Foundation's investments at the end of 2023 was £1.286 billion. The portfolio’s total return of 2.8% in 2023 compared to the Foundation's long-term investment objective (RPI+4%) which was up 9.4% during the year.
Looking back over one-year, three-year, five-year and since-inception, the performance of the portfolio against our long-term investment objectives is as follows:
| Annualised performance over... | Actual return % | Target return % (UK RPI +4%) | Over/(under) performance % |
|---|---|---|---|
| 1 year | 2.8 | 9.4 | (6.6) |
| 3 years | 7.3 | 13.0 | (5.7) |
| 5 years | 8.9 | 10.0 | (1.1) |
| 10 years | 8.9 | 8.3 | 0.6 |
| Since inception (2000) | 7.1 | 7.6 | (0.5) |
Asset allocation of our investment portfolio
The chart below shows the asset allocation of our investment portfolio at the end of 2023.
| 2023 % | 2022 % | Change % | |
|---|---|---|---|
| Global equities | 39.3 | 33.3 | 6.0 |
| Emerging equities | 3.7 | 3.5 | 0.2 |
| Private investments | 32.3 | 36.7 | (4.4) |
| Hedge funds | 6.2 | 8.7 | (2.5) |
| 2023 % | 2022 % | Change % | |
|---|---|---|---|
| Low volatility funds | 11.9 | 12.5 | (0.6) |
| 2023 % | 2022 % | Change % | |
|---|---|---|---|
| Investment cash | 6.1 | 4.6 | 1.5 |
| Currency hedge | 0.5 | 0.7 | (0.2) |
