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Charities: the case for asset-backed securities

Charities: the case for asset-backed securities

03 August 2026 Fixed income
“UK charities face a widening funding gap – income is under pressure and costs are increasing – meaning they may need to either adopt more conservative spending rules or draw more from their investment portfolios. Against this backdrop, we believe asset-backed securities can play a useful role.”
  • UK charities face growing pressure on income and costs, which can increase the need for investment portfolios to provide reliable, accessible income.

  • In our view, asset-backed securities can offer charities greater confidence to spend. We believe the asset class offers a complementary source of diversified income, combining contractual cashflows, potential yield premium, liquidity and responsible investment flexibility.

  • ABS can support responsible investment governance for charities, by allowing trustees to access exposures aligned with their mission and their regulatory frameworks.

 

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