FINANCE NEWS: Charities get help in judging cost of their investments

Fund manager Chiswell Associates has produced guidelines for charities on evaluating the costs of investment management.

They cover charges for investment management, transactions, custody and administration and cash management.

Managing director Robert Brown said: "Charities can fall foul of fee arrangements where they pay costs to a whole range of people, such as an investment manager, a custodian and agency brokers. When this happens they cannot easily form a clear picture of their costs."

The firm is advising charities to bundle as many charges as possible together in an 'all-in' or 'clean fee' arrangement.

Meanwhile, consultant Charity Business is recommending that charities apply a long-term model when agreeing performance fees with their investment manager.

Rather than rewarding or penalising their investment manager each year, charity clients should negotiate a three- to five-year model, which could reduce volatility in returns. "Charities should be looking at long-term remuneration rather than instant gratification," said Charity Business chief executive Mark Freeman.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register
Already registered?
Sign in
Follow us on:
  • Facebook
  • LinkedIn
  • Twitter
  • Google +

Latest Jobs

RSS Feed

Third Sector Insight

Sponsored webcasts, surveys and expert reports from Third Sector partners

Markel

Expert Hub

Insurance advice from Markel

Safeguarding in the Third Sector

Safeguarding in the Third Sector

Partner Content: Presented By Markel

Safeguarding - the process of making sure that children and vulnerable adults are protected from harm - is a big concern for organisations in the third sector.

Third Sector Logo

Get our bulletins. Read more articles. Join a growing community of Third Sector professionals

Register now