The Lister Institute’s Finance and Investment Committee sits at the heart of this story, quietly ensuring that the Institute’s resources are managed with rigour, resilience and a clear sense of purpose. We talked to committee members and our investment managers about their work to assure our charitable mission.
The Lister Institute’s mission is to “further understanding and progress in preventive medicine by promoting biomedical excellence in the UK and the Republic of Ireland through its support of the biological sciences.” It also works to ensure long-term public benefit “through publication of the knowledge gained and, where appropriate, by encouraging its exploitation.”
Yet, as with any charitable organisation, the ability to deliver on this mission depends on sound financial management. Or as Murray Legg, honorary treasurer of the Institute and chair of the Finance and Investment Committee, put it: “We look after the money carefully so we can make the prize awards each year.”
This simple statement encapsulates the Lister’s overarching goal: to ensure that organisation’s capital is managed for the long-term fulfilment of its mission.
Diversification and risk management
Our role really is to make sure that our investments continue to sit in a place on a spectrum that gives us an adequate level of return so that the Institute can do what it wants to do, namely support excellent research, without taking a disproportionate level of risk.
Diversification is a core strategy. The committee currently works with three appointed investment management firms—Partners Capital, Cazenove Capital and Ruffer—to spread risk across a range of asset classes, including equities, bonds, private equity, and cash reserves with mid- and long-term objectives. This spread is designed to provide resilience against market volatility, while also enabling the Lister to outpace inflation.
The Lister’s long-term growth goal is a minimum “inflation (CPI) + 4%”. By targeting returns that outpace inflation, the committee aims to maintain its capital in real terms while continuing to fund its prestigious annual fellowship prizes and operations. Daisy Franklin, a portfolio director at Cazenove notes that CPI + 4% is a common objective among charities with long-term time horizons as it balances capital value with sustainable drawdown.
Strategic asset allocation is complemented by tactical adjustments, made in response to changing market conditions and ESG considerations. Tom Montagu Pollock, co-head of Cazenove’s charities team, explains how the investment views of Cazenove are reflected in the Lister portfolio. “The central investment team meet regularly, any change in house view is reflected in the Lister mandate. We are not typically looking to implement short-term trades, we look to add value over the medium-term through our tactical asset allocation views and implementation. Quite often, the best thing to do when you’re seeing pockets of volatility is trying to not over trade because the risk of getting whipsawed in markets is so high.”
Ensuring resilience: The “all weather” fund
One of the committee’s most significant innovations in recent years has been the creation of a liquidity reserve—often referred to as the “all weather fund”. This reserve, managed by Cazenove and Ruffer, is designed to cover at least two years of forecasted expenditure, ensuring that the Lister can continue to fund prizes even during periods of severe market downturn.
“The all weather fund is an important part of our proposition to applicants,” notes Murray. “They know the prize money will be there, so they will invest the time and trouble in making an application. It provides both practical and emotional reassurance, underpinning the Institute’s commitment to its Fellows and the wider scientific community.”
The all weather fund is a relatively small proportion of the Lister’s total assets so it is not a significant drag on overall investment performance. And it is also managed flexibly and responsibly by the managers, but steered by the committee which discusses whether to use, decrease, or top up the reserve, always with an eye to the Institute’s sustained financial resilience.
Stewardship in action
Every five years, the Committee undertakes a major review to assess whether it is working with the right managers and pursuing the right investment strategy. This approach allows the Lister to respond responsibly to changing financial contexts.
Over the past two decades, this stewardship has delivered tangible results. In 2004, the Institute had around a £26 million capital reserve and funded three prizes. Today, it has more than £44 million and typically supports five or more prizes each year (eight in 2025), alongside the Summer Studentship scheme and other initiatives. Careful management has ensured that the Institute has at least maintained—and arguably increased—its impact, despite the ups and downs of financial markets.
The Lister Institute is thankful for the commitment and careful scrutiny provided by all members of the Finance and Investment Committee. By balancing growth and risk, and adapting to changing circumstances, the committee is successfully safeguarding our future. We will continue to enable bold science, support outstanding researchers and improve biomedicine for future generations. Our mission remains strong.
Further reading
