Redmayne-Bentley s. Charity Service. A bespoke discretionary managed investment service for your charity s needs.

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1 Redmayne-Bentley s Charity Service A bespoke discretionary managed investment service for your charity s needs.

2 Charity Services About Redmayne-Bentley At Redmayne-Bentley, we have been providing stockbroking services since 1875 and have always maintained a friendly and helpful manner. We have built up a highly successful investment management business focusing on charities, Court of Protection portfolios, trusts, pensions and private clients. We take an active interest in and are committed to both local and national charities, to help them achieve their investment objectives. We will be happy to help in person or by telephone through our network of regional branches throughout the UK and in the Republic of Ireland. Our friendly and personal service has repeatedly been recognised with service awards. We are proud to have been successful across many of our stockbroking and investment management services. In 2015, Redmayne-Bentley was named Best Full Service Stockbroker at the Investors Chronicle and Financial Times Awards for the second consecutive year. We were also named Best Advisory Broker at the ADVFN International Finance Awards For more information on our awards, please visit 2

3 Redmayne-Bentley It s All About You We aim to provide a bespoke discretionary service that delivers for your charity. It will allow the Trustees to concentrate on making strategic decisions for your charity s long-term success. Our services offer: Transparency of charges Risk management systems A common sense approach to investment management Value for money In order to deliver on our aims we offer a bespoke portfolio management service with a fee-only option for transparency. This allows you to budget for the cost of the service. The fee covers all aspects of the relationship, from attendance at Trustee meetings to a full programme of educational seminars. Portfolios are monitored using our inhouse risk mitigation procedures and your dedicated investment manager will be able to answer questions on the investments made on your charity s behalf. We aim to provide a value for money service that you can rely on to meet your needs. 3

4 Charity Services Working With You We do not just deal with your charity s portfolio in isolation. We aim to learn more about your charity s activities in order to ensure that the portfolio delivers exactly what is required of it, including cash flow requirements and future budgeting considerations. Bespoke portfolios do not hug a benchmark and so can be tailored to meet the profile of your charity s outgoings, whether they be regular distributions out of income or ad-hoc lump sum capital disbursements. Performance will, however, be measured against an agreed benchmark that reflects the asset allocation of the portfolio. Working with clients on a local level is at the heart of Redmayne-Bentley s philosophy, enabling us to service both local and regionally-based national charities. Socially Responsible Investing With many charities wishing to incorporate socially responsible considerations within their portfolios we may use a selection of ethical and socially responsible funds depending on your charity s requirements. Whether your charity would like to take a positive and/or negative ethical stance on the entire portfolio, or would simply like to make a consideration towards ethical investment, we are able to assist. In 2014 we were awarded a Corporate Partner Award at the 8th Annual Yorkshire Air Ambulance (YAA) Recognition Awards. 4

5 Redmayne-Bentley Our Bespoke Charity Service Our Bespoke Discretionary Charity Service offers a portfolio tailored specifically to your charity s requirements. Your dedicated investment manager will discuss your charity s situation including potential withdrawals and regular expenditure from the fund, in addition to any restrictions, and then construct a portfolio to meet those requirements. The portfolio may contain direct equities, gilts, investment grade bonds, collective investment schemes, common investment funds and ethical funds, with exposure to alternative assets such as infrastructure if it is felt that these asset classes are appropriate. 5

6 Charity Services Investment Process Reporting Understanding your Requirements Agreeing and Setting Strategy Day-to-Day Management Your Charity Review/Update Investment Policy Implementing Investment Strategy 6

7 Communication with the Trustees Redmayne-Bentley Your dedicated investment manager is available to talk to your Trustees at any time. Half-yearly valuations and reviews of your portfolio will be sent on dates agreed with the Trustees, or more frequently if required. Attendance at Trustee meetings can be arranged where required. Trustees will be able to view your charity s account online using our Client Web Access service. We offer a full programme of educational seminars which Trustees are welcome to attend. 7

8 Charity Services Objectives Your investment manager will ask the Trustees to define the objectives of your charity s portfolio. They will be seeking to understand precisely what you want to achieve from your charity s investments in order to suggest an appropriate investment strategy to tailor the portfolio accordingly. For example, your primary aim may be to grow the capital value of your charity s investments. Alternatively, the primary reason for investing may be to produce an income from your charity s investments or you are simply seeking a return greater than that offered on cash deposits. Should your charity s objectives change at any stage, your investment manager will need to know in order to ensure the strategy employed remains appropriate. 8

9 Redmayne-Bentley Investment Strategy The investment strategy to be adopted will be agreed with your investment manager. This will centre around how much you consider that an income stream should feature in the overall return. A growth strategy will usually only generate an incidental income, as investments are more likely to be selected for their growth characteristics. Risk A balanced strategy seeks to generate a return from both income and growth, with the income usually reinvested but available for withdrawal if required. An income strategy will usually focus on higher yielding investments. In proposing the strategy, your investment manager will consider your charity s objectives and attitude to risk. A balanced strategy will often be considered when looking to grow the overall capital value of the portfolio. In some cases, growth may be achieved through an income strategy where the income generated is retained and contributes to the overall growth of the portfolio. All stock market investments contain a degree of risk and, as such, it is important that a long-term approach to investing is taken. For a guide to the definitions of our risk categories as well as an indication of the type of investments that may be included within these categories, please refer to the Investment Objectives and Risk booklet and our Client Risk Profile Questionnaire. You may find it helpful if the nominated Trustees complete this on behalf of your charity. This will help in our discussions with you on the level of overall risk that the Trustees are prepared to take. Your investment manager will discuss the various options before you decide which is most appropriate in view of your charity s individual circumstances. 9

10 Charity Services Benchmarking A benchmark is a point of reference (usually a recognised index) against which the performance of a portfolio can be measured. A Total Return (TR) index is one that takes into account dividends or income distribution in performance. Measuring performance on a total return basis allows for sensible comparison with alternative forms of investment such as bank deposits. The Wealth Management Association (WMA) have devised five hybrid indices to cover growth, income and balanced strategies on a total return basis. These indices incorporate UK and overseas equities, bonds and cash. More recently, commercial property and hedge funds have been added as separate asset classes. We commonly use these as benchmarks for charity portfolios and the appropriate choice will be agreed with your investment manager. 10

11 Redmayne-Bentley Nominee Service It is a requirement of our Charity Service that all stocks and shares are held in a nominee account. Benefits of a Nominee Account Our Nominee Service is longestablished, holding assets securely on your charity s behalf and allowing stock to move quickly and efficiently when required for settlement. Nominee Deposit Account A deposit account is opened automatically for your charity for any uninvested cash. Statements, detailing any cash movements made in the corresponding period, are sent to you on a monthly basis. 11

12 Charity Services Charity Service Terms and Conditions Our Charity Service Terms and Conditions should be read in conjunction with our Charity Service description, Redmayne-Bentley s Terms and Conditions ( and Guide to Services and Charges ( Please contact us for a copy of these documents. Suitability In accepting responsibility for the suitability of any investment transaction, we do so on the basis that we will exercise reasonable diligence, skill and care, in the light of circumstances which are known to us at the time. Any Investment Trusts utilised may be of such a structure or content that the asset value per share may significantly deviate from the value of the underlying investments, but any such potential for variation will be taken into account by the investment manager within the overall risk profile of your charity s portfolio. You should understand that the value of investments, and the income arising from them, can go down, and that accepting lower risk does not mean there is no risk of a loss in value. Please also see our Investment Objectives and Risk booklet. Variation and Termination Any amendments to these arrangements will be notified or confirmed to you (or by you) in writing. Either party may initiate such changes. Termination of these arrangements may be given to either party in writing to take effect immediately. Any legal rights or obligations will not be affected. Valuations and Fees Portfolio valuations are supplied half-yearly or more frequently if required. Fees will be charged as detailed in the agreement form and deducted from your charity s account, unless otherwise stated. Portfolio Reviews A review of your charity s investments, including commentary on the wider market, will be supplied half-yearly, or more frequently if required. 12

13 Redmayne-Bentley Best Execution Policy Redmayne-Bentley has a Best Execution Policy which we will follow in order to obtain the most appropriate deal for your charity. Full details of the policy and the factors considered are available on request or via our website Termination of Nominee Agreement We reserve the right to terminate your charity s account, access to the service or any portion of it at our sole discretion, without notice and without limitation for any reason whatsoever including, but not limited to, an event of default by you. You may close your charity s nominee account or transfer to another adviser. The cost of closure will be 15 per holding (up to a maximum of 195) and any applicable custodian charges or Stamp Duty. Conflicts of Interest Policy Redmayne-Bentley has a Conflicts of Interest Policy which every Executive is aware of and required to follow. Full details of the policy are available on request or via our website European Directives ~ Undertakings for Collective Investments in Transferable Securities (UCITS) If you would like to see a Key Investor Information Document (KIID) for a UCITS fund for example, a unit trust or Open Ended Investment Company (OEIC), which has been purchased on your charity s behalf, these are available upon request. Risk Warning Please remember investments and income arising from them can fall in value and the charity may get back less than originally invested. All investments involve risk and your charity may not get back the full amount of its investment and it may fail altogether. Past performance and forecasts are not reliable indicators of future results and performance. There is an extra risk of losing money when shares are bought in some smaller companies, including penny shares, as there can be a big difference between the buying and selling price. Partners, employees and clients may have a position or engage in transactions in any of the securities mentioned. 13

14 Charity Services The Next Step If you are interested in this service please contact our charity investment team on or your local branch to request a telephone or face to face meeting. We will be happy to provide a tender document or present our services to the Trustees and explain any aspect in more detail. For a guide to the definitions of our risk categories as well as an indication of the type of investments that may be included within these categories, please refer to the Investment Objectives and Risk booklet. You will also need to complete our Client Risk Profile Questionnaire. This should be completed by the Trustees to ensure the suitability of the service to be provided. Your investment manager will discuss the various options before you decide which is most appropriate in view of your charity s individual circumstances. Information Point To request further information and/or to discuss any of our services: Call your local branch, or Visit: charities@redmayne.co.uk 14

15 Redmayne-Bentley

16 Members of the London Stock Exchange. Authorised and Regulated by the Financial Conduct Authority Redmayne-Bentley LLP is a Limited Liability Partnership. Registered in England and Wales No: OC Registered Office: 9 Bond Court, Leeds LS1 2JZ. LEI: S3IRIPK1R3JQ58 Telephone: charities@redmayne.co.uk. VAT No: GB Branches throughout the UK and in the Republic of Ireland, for details visit CHARITY 02/16/006 BBB7823

17 Charity Discretionary Investment Management Agreement Form FULL CHARITY NAME CHARITY ADDRESS Address Postcode HMRC Number/FICO Number LEI Number 1. CORRESPONDENT (Please complete in BLOCK CAPITALS) Position in Charity Title (eg. Mr. Mrs. Dr.) First Name(s) (in full) Date of Birth / / Address Tel No. (Day) Tel No. (Mobile) Tel No. (Evening) Surname Postcode How many years have you lived at this address? I understand that I am responsible for all decisions relating to this account and confirm that I am aware of the true identity of the underlying principals of the Trust (ie. the name beneficiaries/settlors of the Trust) and that there are no anonymous principals. I am a Trustee. I am not a Trustee. 3. TRUSTEE ONE (Please complete in BLOCK CAPITALS) Position in Charity Title (eg. Mr. Mrs. Dr.) First Name(s) (in full) Date of Birth / / Address Surname Registered Charity Number 2. ACCOUNTANT (Please complete in BLOCK CAPITALS) Title (eg. Mr. Mrs. Dr.) Surname First Name(s) (in full) Company Name: Address Postcode Tel No. (Day) Do you authorise us to provide your accountant with information upon request? Yes. No. 4. TRUSTEE TWO (Please complete in BLOCK CAPITALS) Position in Charity Title (eg. Mr. Mrs. Dr.) Surname First Name(s) (in full) Date of Birth / / Address Tel No. (Day) Tel No. (Mobile) Tel No. (Evening) Country and place of birth Postcode National Insurance Number/Tax Identification No How many years have you lived at this address? I understand that as a Trustee I am responsible for all transactions on this account and confirm that I am aware of the true identity of the underlying principals of the Trust (ie. the name beneficiaries/ settlors of the Trust) and that there are no anonymous principals. Tel No. (Day) Tel No. (Mobile) Tel No. (Evening) Country and place of birth Postcode National Insurance Number/Tax Identification No How many years have you lived at this address? I understand that as a Trustee I am responsible for all transactions on this account and confirm that I am aware of the true identity of the underlying principals of the Trust (ie. the name beneficiaries/ settlors of the Trust) and that there are no anonymous principals. Please continue overleaf

18 CLASSIFICATION Registered charities with an annual income of less than 1 million will be classified as a retail client as defined under the Financial Conduct Authority (FCA) rules as a client who is not a market counterparty or an intermediate customer. PAYMENT DETAILS Please pay dividends to Redmayne-Bentley Deposit Account or Bank/Building Society* *Please delete as applicable Name of Bank/Building Society* Address Postcode Account Holder s Name(s) Sort Code / / Account Number ANNUAL CONSOLIDATED TAX VOUCHERS Should be sent to: Correspondent Accountant Other: CLIENT WEB ACCESS Our online Client Web Access allows you to view your charity s portfolio securely online. To receive a username and password in order to view the charity s accounts tick here (Please note this requires a valid address.) EXPECTED TIMESCALE FOR THE AGREEMENT A. Years or B. Ongoing BENCHMARK The benchmark used to monitor the performance of the portfolio will be: MANAGEMENT FEE Management fees will be agreed with your investment manager prior to the commencement of the service. Fees will be charged based on the total value of your portfolio at an annual rate of % Commencing and then every month(s) thereafter. INITIAL FEE If applicable % or will be deducted from the amount of your application and is payable to your financial adviser. State if VAT is to be added Yes/No.* (See clause 5 in declaration below.) *Please delete as applicable. DECLARATION I/We* declare that: 1. I/We* give Redmayne-Bentley the authorisation to administer the charity s account(s) using the Redmayne-Bentley nominee and cash deposit facilities. 2. I/We* agree to notify Redmayne-Bentley of any changes to the charity s circumstances which may have a material effect on the information provided and have completed this form in full in order to allow Redmayne-Bentley to act for the charity on a continuing basis. 3. I/We* understand that investments held within portfolios and the strategies employed, in order to generate returns independent of stock markets, may not have the liquidity of listed investments, or even secondary markets for them. I/We* understand that timeframes for full or substantial redemptions will partly be determined by the underlying investments redemption periods which may be up to 12 months. This does not affect income distributions, or partial withdrawals. 4. Whilst most orders undertaken will be in accordance with Redmayne-Bentley s published Best Execution Policy, I/we* acknowledge that Redmayne-Bentley may execute orders outside of a recognised market or Multilateral Trading Facility (MTF). I/We* agree that Redmayne- Bentley may do this as they see fit in order to achieve a similar or better result. I/We* will contact Redmayne-Bentley if I/we* do not understand this or require further information. 5. I/We* confirm that where any fee is payable to an FCA regulated adviser, as detailed in this agreement form, this has been agreed by the charity with the financial adviser and I/we* authorise Redmayne-Bentley to make this payment. I/We* understand that this will be paid on production of the adviser s invoice or other evidence and any VAT charge will be decided by the adviser. 6. In the event that this FCA regulated adviser no longer provides a service to the charity, Redmayne-Bentley will be informed and I/we* agree that any future payments to the financial adviser from that time will be ceased. 7. I/We* agree that if there are any changes to the terms of this agreement, for example the fees payable to Redmayne-Bentley, this will be agreed and confirmed in writing to the charity Trustees. I/We* understand that if our agreement with you is cancelled for any reason, Redmayne-Bentley reserves the right to retain any charges incurred. 8. I/We* confirm that none of the Trustees are a United States person, resident or green card holder. 9. This is Redmayne-Bentley s standard agreement for the charity service upon which Redmayne-Bentley intends to rely. For the charity s own benefit and protection, it should read the Service Description, Redmayne-Bentley s Terms and Conditions and A Guide to our Services and Charges carefully before signing this form. If the charity does not understand any point, please ask for further information. 10. I/We* declare that this application form has been completed to the best of my/our* knowledge. *Please delete as applicable. Please sign here Date Date (Trustee One / / / / (Trustee Two) Members of the London Stock Exchange. Authorised and Regulated by the Financial Conduct Authority Redmayne-Bentley LLP is a Limited Liability Partnership. Registered in England and Wales No: OC Registered Office: 9 Bond Court, Leeds LS1 2JZ. LEI: S3IRIPK1R3JQ58 Telephone: info@redmayne.co.uk. VAT No: GB Branches throughout the UK and in the Republic of Ireland, for details visit CDIM APP 02/16/005 BBB7814