BATTLE AGAINST CANCER INVESTMENT TRUST: Charitable trust that combines making money with saving lives 

Respected: Jeremy Tigue is backing cancer research

Finding a cure for cancer is not just the dream of scientists and doctors – even some normally hard-nosed City types share this altruistic goal.

The Battle Against Cancer Investment Trust was set up in 2012 to do just what its name suggests, as well as make money for its shareholders.

The unusual trust was conceived by Tom Henderson, formerly of investment house Cazenove and hedge fund group Moore Capital. He was inspired by his father’s chairmanship of the Institute of Cancer Research and is a big personal investor in the trust.

Henderson and his management team, which includes chairman Jeremy Tigue, the respected former manager of investment trust big daddy Foreign & Colonial, have become bashful since launch and no longer seek publicity for BACIT. The Mail on Sunday’s request for an interview was politely rebuffed – as are all media enquiries.

But others are happy to comment, including Jason Hollands of broker Tilney Bestinvest, many of whose customers invested in it at launch. 

He says the trust, which invests in 15 funds worldwide rather than individual stocks, has delivered ‘steady, positive returns with less volatility than global equities’. 

Investors have enjoyed a smooth ride thanks to the broad global exposure across traditional equity funds, such as Polar Capital Japan Alpha and Majedie UK Equity, and alternative investments that include hedge funds Polygon European Equity Opportunity and Parity Value, which are normally unavailable to small investors.

What is surprising but admirable is most of these managers also waive their fees, diluting the impact of double charges often associated with funds of funds.

Initially, BACIT’s managers provided their services free. In lieu of a fee, a donation has been made every year equivalent to 1 per cent of the trust’s net asset value to cancer charities – half to the Institute of Cancer Research and half to the BACIT Charitable Foundation, which donates to charities selected by shareholders, including Marie Curie Cancer Care and Beating Bowel Cancer.

But at the end of last year the reality of looking after hundreds of millions of pounds meant shareholders voted in favour of a 0.19 per cent management fee on top of the charitable donation.

BACIT also invests one per cent of its assets a year in the Institute of Cancer Research’s drug discovery programme, meaning it will benefit from any commercial success from these endeavours. One drawback is the shares are trading at a premium of 5.5 per cent, making them relatively dear.

Hollands says the nearest similar trust is RIT Capital Partners, which invests in hedge funds and private equity. 

He says: ‘It has delivered higher returns over three years but has been more volatile as it has greater equity exposure and does not incorporate BACIT’s charitable structure.’

Patrick Connolly, of investment broker Chase de Vere, finds BACIT intriguing. He says: ‘It isn’t ever likely to shoot the lights out but if you want low volatility and competitive charges, plus the advantage of supporting charities, then this trust fits the bill. With nearly two-thirds of the trust invested in hedge funds it should provide good capital protection.’

John Ditchfield, of ethical financial adviser Castlefield, is underwhelmed. He says: ‘The fund has returned almost 10 per cent over three years, which compares well with the FTSE All-Share but much less well against global equities.’

He adds: ‘Curiously, it does not require underlying investment funds to operate with ethical investment screens.’ He prefers the Threadneedle Social Bond fund, which is similar in spirit to BACIT but holds bonds supporting affordable housing and education.

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