With nearly a third of our client assets managed for charitable purposes, we understand the role and responsibilities of charity Trustees
As investors our core purpose is to preserve and increase the real (inflation-adjusted) value of the charity’s capital. Although we invest in growth opportunities across global markets, when building portfolios we are conscious that limiting downside can be a key driver of long term returns.
Over the market cycle, we feel that it is the return, over and above inflation, that signals success. Whilst volatility and downside are valid measures of risk, we consider the possibility of permanent capital loss a more important yardstick. When defining mandates to meet a charity’s unique set of requirements, it is these guiding principles that inform how we manage the funds.
We are active investors and ask for the latitude to reflect our investment convictions in trust portfolios. We do not manage against any particular asset class or index. As a result, we do not feel compelled to own an investment simply because it is an index constituent.
With nearly a third of our assets under management supporting charitable endeavours, we are well versed in the management of portfolios that have restrictions or specific return requirements; we have dedicated systems and procedures to ensure that guidelines are seamlessly incorporated into our management process. As part of our service, our fund managers have access to in-house tax professionals to help ensure that management complies with any tax imperatives.
In an increasingly complex investment world, we focus on independent research and quantitative data, tuning out a lot of the industry noise. To complement the investment process, we retain an Independent Advisory Committee. Convened every month and populated by a variety of investment specialists, the gathering provides a valuable forum to challenge and refine the house views.
It is our experience that good communication is a vital element when managing charity funds. We are guided by the Trustees as to the frequency, format and content of portfolio reports. Senior investment executives are always available to review the portfolio or answer any investment questions. We seek to be the partner the Trustees are comfortable turning to on any investment matter.