In two weeks' time, we'll be gathering at CFG's 2025 Annual Conference. We speak with Sophie Ward from HSBC Global Private Banking about this year's theme: Strong Foundations, Lasting Impact – and why getting the fundamentals right is everything in today's volatile landscape.
What does this year’s Annual Conference theme – Strong Foundations, Lasting Impact – mean to you in the context of your work?
The foundation is everything. When we begin working with charity clients, we spend time understanding not just their financial position, but their organisational DNA – their objectives, risk appetite, and operational realities. This isn't about applying a standard template; it's about crafting a bespoke strategy that will serve them through market cycles.
Sometimes this means having difficult conversations with trustees about outdated assumptions or introducing asset classes they've never considered. But when you get the architecture right from the start, the effect is noticeable – every subsequent decision builds upon that solid foundation, creating genuine, lasting impact.
These are uncertain economic times, globally and at home. What can charities do to navigate through them?
Planning, communication and diversification. The charities thriving right now are those who've thought rigorously about their cashflow requirements and communicated these clearly to their investment teams and bank. This could mean holding more cash or putting a lending line in place to smooth cashflow.
Most importantly, ensure your portfolio is properly diversified as different investments respond differently to various market conditions, which naturally reduces your overall risk exposure. It's about building resilience, not just chasing returns.
What role do investments play in building organisational resilience? Are they part of a strong foundation? What impact can they have?
Investments are critical. From 2004 to 2024, whilst cash increased by 43%, inflation rose by 75%[1]. Any organisation holding unnecessary cash reserves suffered real purchasing power erosion. For your operational reserves, we can construct fixed income maturity ladders that provide cashflow certainty and help you match your liabilities with increased precision.
Beyond reserves, when you have assets that aren't needed for immediate working capital, the investment landscape becomes far more interesting. Fixed income for yield enhancement, equities and alternatives for long-term growth. Over that same 20-year period (2004- 2024), bonds delivered 104% returns whilst equities achieved 609%[2]. These aren't just numbers; they represent your ability to fulfil your charitable mission decades into the future.
What would you say to those charities with investments who might be feeling uneasy about the current economic picture right now?
Stay the course. In our hyper-connected world, market noise is amplified and constant, but successful investing requires looking through this volatility. Short-term fluctuations are an inevitable part of the investment journey – the key is maintaining perspective and discipline.
History shows that those who react to short-term volatility often end up buying high and selling low. Financial markets trend upward over the long term despite periodic corrections, and often the most critical periods to remain invested are precisely when markets feel most uncertain. Time in the market always beats timing the market.
How is HSBC Private Global Banking supporting the charity sector to be more resilient and more impactful?
We work across your entire balance sheet – from cash management for reserves through to sophisticated multi-asset portfolios and private equity for clients with longer investment horizons. We also provide lending solutions secured against investment portfolios when appropriate.
But beyond the technical solutions, we’re there as strategic advisors from day one. This includes guidance on investment policy statements and trustee education programmes. When trustees truly understand investment principles, they make better decisions and feel more confident in their stewardship role. We've also introduced a donor advised fund solution for private clients looking to enhance their philanthropic giving – creating another bridge between wealth and charitable impact.
HSBC Private Global Banking has supported CFG’s Annual Conference for five years in a row now – and we’re delighted you’re headline sponsor at AC2025. What do you see as the benefits of being at Annual Conference – for you and for others – and what do you enjoy most about the day?
You're surrounded by people doing incredible work, and you get to hear first-hand what's really happening on the ground. That insight shapes everything we do. But what really keeps us coming back is the reminder of why this all matters. When we help a charity's investments perform better, it means more money for the causes that are changing lives and the world.
Thank you for your time, Sophie! We're looking forward to seeing you and the team at CFG's Annual Conference on Thursday 26 June. Tickets are still available - visit our events page to find out more.
[1] Bloomberg, Data from 31.12.2004 to 31.12.2024. Indices used: Global Equity = MSCI World Total Return in GBP; Global Corporate Bonds = Bloomberg Global Aggregate Corporate Bonds Hedged into GBP; Cash = Barclays Benchmark Overnight in GBP; Inflation = UK Consumer Prices Index (CPI).
[2] Bloomberg, Data from 31.12.2004 to 31.12.2024. Indices used: Global Equity = MSCI World Total Return in GBP; Global Corporate Bonds = Bloomberg Global Aggregate Corporate Bonds Hedged into GBP; Cash = Barclays Benchmark Overnight in GBP; Inflation = UK Consumer Prices Index (CPI).