"John Ellerman Foundation's Sufina Ahmad emphasizes the importance of slow, steady growth in influence, explaining her approach to long-term investing"
The John Ellerman Foundation, a leading philanthropic organisation based in the UK, has revealed its strategic approach to investment and asset allocation, emphasising a balanced focus on financial returns and ethical considerations.
## Investment Approach and Asset Allocation
With a strategic allocation heavily tilted towards global equities, accounting for 85% of its overall portfolio, the Foundation demonstrates a strong emphasis on equity investments to generate returns and support its philanthropic activities. The remaining 15% is allocated to other investments, though specific details about these allocations remain undisclosed.
## Funding Strategy and Ethical Considerations
In 2025, the Foundation launched a new funding strategy for the following five years, titled "A Time for Bold Transitions." This strategy aims to address significant disruptions by providing multi-year core costs funding to support work with a national scope, reflecting an emphasis on long-term support for impactful projects.
While specific ethical considerations are not detailed, the Foundation's focus on supporting national projects and its commitment to addressing significant disruptions suggest a strategic approach that likely incorporates ethical and societal impact considerations.
## Net-Zero Policy and Engagement
The Foundation has a clear net-zero policy and excludes investments in tobacco, thermal coal, tar sands, and new fossil fuel infrastructure through primary market capital assets. Implementing this policy for a portfolio of pooled funds managed externally can be challenging and requires a degree of flexibility. The Foundation prioritises engagement with managers over direct ownership engagement.
The Foundation asks specific questions about engagement, escalation tactics, and divestment to managers, and some of the funds it is invested in already have exclusions in place.
## Leadership and Adjustments
Sufina Ahmad, who joined the Foundation as director five years ago, has been instrumental in its evolutions. Ahmad was awarded an MBE for charitable services in 2020. Over the past five years, the Foundation has adjusted its lineup of managers to better align with its investment policy and objectives.
Political headwinds in the US have made finding the right managers more challenging, but the Foundation has made progress over the years in its engagement efforts, despite some managers improving more than others.
## Legacy and Influence
John Ellerman, a wealthy British entrepreneur in the early 20th century, made his fortune in shipping and owned influential papers such as The Times, the Financial Times, and the Daily Mail. When Ellerman passed away, he left close to £36m; some of this wealth was used by his son to establish the John Ellerman Foundation.
Today, the Foundation manages a portfolio of £142m in assets and funds a broad array of social and environmental causes. The Foundation's influence is primarily through sharing its point of view with managers.
In conclusion, the John Ellerman Foundation's approach to investment and asset allocation, as well as its ethical considerations, can be understood through its strategic allocation and funding strategies. The Foundation prioritises long-term investment strategies while supporting impactful social projects, striking a balance between compliance with its investment policy and financial returns.
While the John Ellerman Foundation primarily focuses on equity investments for financial returns and supports its philanthropic activities, it also allocates 15% of its portfolio to other investments, suggesting an investigative approach to diverse business opportunities. Moreover, the Foundation's net-zero policy and exclusion of certain industries indicate a conscious effort to invest ethically, demonstrating a business strategy that values both financial returns and societal impact.
