If you are a charity, you will have bespoke investment criteria, particularly in terms of your investment timeline, cashflow needs, and ethical requirements. We can help you achieve your aims and deliver an investment service to your charity that truly meets your specific needs.

Your asset holdings play an important role in your charity’s investment planning as you aim to maximise the benefit you provide to society. It is important that your assets are well-managed with a clear strategy in place, and with appropriate governance structures – whether it’s meeting short term cashflow needs at the time they are required or generating long-term returns.

Our investment team has over 130 professionals overseeing more than 450 clients with over £140 billion in assets collectively. As an independent organisation, we are ideally positioned to support charities when it comes to understanding and meeting their specific investment objectives through a collaborative, free thinking approach. With no asset management products to sell, we are unencumbered when it comes to advising charities on suitable investment managers and management structures.

A continuing focus on the investment governance of your charity is essential. You want to be able to take investment decisions in the best conditions and have a positive impact on your investment results.

What are the key components of strong investment governance for charities?

  • set your goals and objectives including separate goals for short and long-term assets as appropriate
  • define your investment beliefs such as your views on active vs. passive investment management
  • clearly define the roles of various bodies inside and outside your charity
  • document your charity’s investment arrangements in an investment policy in line with CC14 guidance

We will work with you to document and establish your investment governance, based on your aims, beliefs and constraints. These three building blocks will form the basis of how your charity’s investment portfolio will be structured. Strong beliefs will help you develop the investment strategy in line with your values, your view on the world and investment sensitivities.

A robust investment strategy for charities requires careful planning and a structured process. We work alongside you so that our services are tailored to your charity’s specific needs.

Building on the investment governance work we do with you – as well as your own aims, beliefs and constraints - you will then be able to decide how investment returns will be generated, while taking on an appropriate risk level. This will form the basis for your strategic asset allocation.

Your appetite to take on risk and the time horizon of your investments will inform the appropriate allocations across asset classes.

Our investment strategy review process for charities places the emphasis firmly on your objectives, both short and long-term. It is against this framework that we will monitor your strategy and its performance and keep you informed.

A typical component of our initial investment strategy review is to assess the credentials of your current investment arrangements and manager(s) against your agreed aims. We will only advise changes where there would be a material benefit in doing so.

If changes are required, we will support you with the process of choosing external investment managers for your charity. Our main aim is to protect you from unsuitable managers, and so we have a preference for investment managers with established track records, stable organisations, clear and straightforward investment processes that provide value-for-money.

Our independence means we are not restricted in our recommendations. That means we can offer a truly objective view of the managers available or the managers you already work with.

In addition, we believe it is crucial to monitor performance, not only of the individual managers, but also of the overall investment strategy, in line with your charity’s aims, beliefs and constraints.

Your charity will have a goal of making a positive impact on society, so it is right to have an emphasis on your investments being managed in a sustainable and responsible manner. This may, for example, involve excluding certain “sin” stocks from your investment universe, consistent with your charitable objectives.

However, assessing how to invest as a charity in a sustainable way goes beyond ensuring alignment with your values and beliefs. It can also identify material financial risk factors; for instance, due to poor governance issues or environmental impacts.

Our ESG investing advice for charities is supported by a working group whose expertise draws on the depth of knowledge from across the firm to provide insightful and innovative research, training and support. 

Get in touch

Need some expert help? Get in touch with Partner Neil Davies with any queries you may have.

Contact Neil