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CTFs Investment Survey 2016

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Conservation Trust Funds (CTFs) are private, legally independent institutions established to catalyze resources and provide stable, sustainable, long-term sources of funding for the protection and sustainable management of natural resources in areas of high biodiversity. CTFs typically encompass one or more endowments and/or sinking funds. Coupled with other financing mechanisms, CTFs use income from investments to provide a reliable source of support for management of protected areas, long-term investment in conservation programs and projects, and financing for indigenous communities. Many of the CTFs grow to become significant resource mobilization and grant-making institutions, effectively managing and disbursing funds from a variety of sources to support conservation and sustainable livelihood projects. To maximize their available resources for conservation funding, effective and prudent management of invested assets is critical to the success of the CTFs.

Since 2006, the Conservation Trust Investment Survey (CTIS) has been tracking the financial performance and investment strategies of CTFs throughout Africa, Asia, Eastern Europe, the Pacific, Latin America and the Caribbean. The Conservation Trust Funds described in this study manage endowment funds, sinking funds, revolving funds1 , or all three.

The information reported in this study is based on a variety of investments denominated both in the local currency of the CTFs’ home countries, and in international currencies, including US dollars and Euros. The investments range from those held almost exclusively in local banks or fixed deposits, to globally diversified investment portfolios managed by international investment firms.
In 2016 CTF nominal returns ranged from 5 to 6%, at the mean and median, looking at both overall organization returns and returns for endowments and sinking funds separately. When inflation is considered, the average overall, endowment, and sinking fund real returns are just under 3%.
Category: #Financial Information #Investment Strategies