Charity clients are likely to be affected by the poor trading performance that many fund managers are reporting.
Recently NM Rothschild's asset management business said it had lost £11 million last year and others have seen profits tumble and been forced to make redundancies. Schroders, which has nearly 300 charity clients, has seen profits halved and plans to slash 20 per cent of its workforce.
Julian Windsor, an executive director at Schroders, said that the cuts had not affected charities. "Our people working with charities tend to be among our best and longest-serving staff,
But he added that the downturn was forcing investment houses to review their client costs.
"Everybody is now looking for higher-value clients,
Schroders' charges are based on the value of the portfolio managed but those portfolios have shrunk recently, thus reducing fees.