Charities

Charities

Meeting your charity needs

The investment demands of each charity are different. We therefore need to develop a good understanding of the trustees’ long term objectives and requirements prior to proposing investment strategies to meet them. We are then able to work with each charity to develop a long term solution based on expected returns, time horizons and levels of risk with which the trustees feel comfortable.

While charities differ in their requirements, there are four broad stages to our advice:

  • Carrying out an in-depth review of the charity’s financial position, objectives and risk appetite
  • Recommending an appropriate Strategic Asset Allocation
  • Selecting the most suitable investments within each asset class
  • Ongoing tactical asset allocation, monitoring and reporting. This includes reviewing any changes in the charity’s financial circumstances or charity legislation and responding accordingly

The majority of our charities choose to use pooled funds for the management of their assets. This enables us to structure an administratively efficient and cost effective investment mandate, which seeks to access the most talented managers while retaining the flexibility to adapt should circumstances change. To this end, Cazenove Capital offers a family of five Charity Commission authorised Common Investment Funds (CIFS) which in combination, provide a unique pooled offering for charities. The particular areas of expertise are UK Equities, Fixed Interest, Property and Hedge Funds which are all key asset classes for charities. We access international markets, and where necessary achieve further diversification in the UK, on a best of breed approach.

However we recognise that some charities have investment restrictions which rule out the use of pooled vehicles. Therefore, where there are sufficient assets to diversify the trustees’ risk in a cost effective way, we will invest for charities on a segregated basis and have an excellent record in managing portfolios of individual assets.

Finally, we have considerable experience of managing charities with ethical considerations.