Experienced Managers of Charity Portfolios
With nearly a third of our client assets managed for charitable purposes, we understand the role and responsibilities of charity Trustees
Charities often have defined capital and income needs, as well as specific investment restrictions. Working with the Trustees and their advisers, we seek to define a detailed mandate that recognises these imperatives. Thereafter, we appreciate how important it is to demonstrate adherence to mandate parameters when delivering return objectives. Communication and transparency are a key element of the long term relationships we enjoy with our charity clients.
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.
Security of capital
The security of client assets is paramount. Client monies are always held in segregated accounts, with major global custodians, in the client’s name. Funds are never co-mingled and are not exposed to the creditworthiness of Bentley Reid.
In all jurisdictions of operation, Bentley Reid entities are fully authorised and regulated by the relevant authorities including the HK SFC and the UK FCA. For additional detail please see the regulatory information page.
As further comfort, Bentley Reid carries significant professional indemnity insurance, underwritten at Lloyds of London. In this way, we seek to offer the security of a much larger business with the service and flexibility of a focused boutique.
At the outset of our relationship, we agree a clear schedule of fees with the charity. Being transparent, commercial and fair, we welcome open discussions to agree mutually acceptable fee levels.
For investment management we charge an ad valorem or percentage fee. The rate will reflect the portfolio value, the mandate complexity and your wider relationship with us. Should the Bentley Reid collective funds be relevant, please note that company executives are significant unit holders, investing alongside clients.
For banking, custody and related transactions, fees are levied by our preferred global custodian banks. These are charged directly by the banks at preferential Bentley Reid rates.
If you feel we might be of service, we would be delighted to hear from you. We do not charge for initial meetings. Please contact us at one of our offices.