FINANCE NEWS: Charities feel heat of fund managers' fall in performance

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,

he said.

But he added that the downturn was forcing investment houses to review their client costs.

"Everybody is now looking for higher-value clients,

he said.

Schroders' charges are based on the value of the portfolio managed but those portfolios have shrunk recently, thus reducing fees.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Already registered?
Sign in

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus