Investments  

Launch Pad: Portfolio management

The firm’s managing partner Seonaid Mackenzie said the new service would be offered directly to charities through intermediaries including IFAs, accountants and solicitors, giving them customised fixed income solutions which managed funds on both a discretionary and advisory basis.

She added: “Many large investment management firms either do not focus on charities or show no interest in the sub-£20m arena.

“We are offering a not-for-profit service to charities which need guidance on how to preserve their capital and generate income, especially in the volatile markets we have seen in recent years, but they are usually overlooked by investment management firms for being too small.”

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Solutions are tailored to meet client specific objectives and to deliver income above inflation, using a combination of short duration UK and international bonds, hedged for currency risk.

Key features of the service:

• Minimum investment of £250,000 - making it available for a wide range of small to medium sized charities, schools and college foundations

• No initial charge

• Annual management fee ranging from 0.75 per cent on the first £1m invested, to 0.25 per cent on the next £10m - the fee covers only wage and administration costs for Sturgeon

• Sturgeon receives no initial commission from any third party managers, with monies reinvested on clients’ behalf

• A yearly fee of 0.15 per cent is charged to cover custody/settlement and dealing costs

IFA Verdict

Philip Milton, managing director of Devon-based Philip Milton & Co, said: “The problem with charity trustees is that they are very risk averse, especially over the past few years, where they believed that doing nothing is best. This is very frustrating when advising them. This type of proposition is fine, but I think its a bit of a novelty, the key is for trustees to be less cautious.”