Charity trustees have a key responsibility to identify and implement the right investment approach. This should meet the objectives of the charity or non-profit organisation, but at the same time, generate revenue for the charity. It can be a complicated balance, especially when trying to fulfill a number of other obligations.
Evelyn Partners can help.
A specialist team
Our team works with charities to help shape their financial future for generations. By building long-term partnerships, we understand not only your investment objectives but the philanthropic aims of your charity.
Charity investment portfolios
At Evelyn Partners, we appreciate that each charity is unique, with its own distinct requirements. We work directly with executives and trustees to create customised investment portfolios that meet your charity's specific needs, values, and changing objectives.
Our investment team uses our robust investment process to build a portfolio that meets each charity’s specific needs. Within this, our investment philosophy rests on four key pillars:
- Quality – our portfolios are focused on high-quality and sustainable business models, We use (growing, attractively valued, sustainable, and proven) criteria when investing in businesses that are Growing, Attractively Valued, Sustainable and Proven
- Liquidity – portfolios need to be flexible in order to adapt to changing economic and market conditions
- Diversification – well-diversified portfolios should add value both in rising and falling markets
- Risk management – risk and return are two sides of the same coin. Good risk management begins with an in-depth understanding of each charity, starting with the risk register, reserves policy and all the way through to the investment policy
This philosophy permeates every aspect of our engagement with trustees and the delivery of our services. Ensuring that risk taken is intentional, transparent and clearly understood by all trustees is crucial and reflected in our reporting and regular reviews of investment policy.
Our Charity Investment Management service
At Evelyn Partners, our specialist knowledge and experience of the charities sector has built up over decades. We collaborate with many of the UK's biggest charities and not-for-profit organisations and today, we manage more than £3.2 billion as at May 2023 for over 1220 charities.
Our relationships are led by individual investment managers, giving trustees direct access to the decision-makers on the portfolio. Our investment process is collaborative, long term and intellectually rigorous.
- Our clients benefit from careful and sensitive stewardship of their capital and our experience as leaders of ethical and responsible investing
We take the time to understand your real investment objectives, risk tolerance, ethical and ESG constraints and actively manage the charity’s portfolio on your behalf
- We understand the additional responsibilities of charity trustees and offer a high standard of reporting and performance analysis. Your investment manager will attend trustee meetings where required, and we provide ongoing training and guidance on topical issues affecting trustees
- You’ll benefit from our robust asset allocation, investment selection and risk management process that has evolved over many years. It has proved effective in both rising and falling markets, helping preserve and grow our clients’ capital
- Clients contact our investment managers and their teams directly. We like to meet
regularly with our clients either in person or on video conferencing
- We provide detailed quarterly updates and performance analysis packs and online access to valuations, transactions and other reporting
Speak to us about investment management for charities
To see how our investment management service could benefit your organisation, contact one of our experts for more details.
Frequently asked questions
What investment options are available for charities?
Bespoke investment portfolios are built to match each charity’s unique requirements, values and goals. These are individualised While some charities choose to invest in a pooled fund others prefer the transparency and individuality of having a portfolio that meets their organisation’s unique requirements for growth, income and mission alignment.
Do charities pay VAT on investment management fees?
Charities do pay VAT on investment management fees but not on custody. They represent a significant discount from our private client fees and are consistently reviewed to remain competitive.
Why does a charity need an investment policy?
An investment policy helps a charity to clearly define their objectives, their risk comfort and what they requires from an investment management relationship. It is a legal requirement of the Trustee Act 2000 for charities registered in England and Wales. It is also considered best practice by the Charity Commission (and regulators in Scotland and Northern Ireland), for registered charities and for other charitable organisations.
Is it time to review your Charity’s Investment Policy?
Your charity’s investment policy is a living document and should be reviewed at least annually or when any significant changes occur within the charity. While your investment objectives might be long term goals reviewing your policy periodically ensures that how you achieve those objectives remains aligned your charity. Find out more about writing a Charity Investment Policy.
The value of investments, and the income from them, may go down as well as up and investors may not get back the amount originally invested.