Investment Management for Charities www.bham.co.uk
Although no two charities are the same, many face similar challenges in managing their finances to achieve the best results for the causes they support. It is vital that all of a charity s professional advisors fully understand the unique requirements, goals and aspirations of the charity and the various challenges they may face in meeting those objectives. Client focus Our primary responsibilities as Investment Managers are the best interests of your charity and helping you to meet your obligations as a trustee. Trustees have direct access to the person managing the charity s investments; they will work closely with the trustees to deliver a bespoke investment portfolio designed to meet the charity s unique requirements. Objective and impartial We are privately owned with no ties to any bank or financial institution. Our experienced and highly qualified team of investment professionals are focused solely on providing you with the best service. We offer a bespoke investment management service that is delivered by experienced charity Investment Managers with a thorough knowledge of the charity landscape. www.bham.co.uk
04
A prudent investment philosophy Our investment philosophy is built around prudent investment management, robust risk management and our strong belief that solely focusing on returns will ultimately lead to taking unnecessary risks. We understand that safeguarding and preserving capital is often at the forefront of trustees minds; we re not afraid to challenge industry norms in order to achieve strong risk-adjusted returns through multi-asset investment. Truly bespoke Every charity is different. We are dedicated to fulfilling the charity s bespoke investment needs in line with charity s unique objectives and service requirements. We are happy to assist in the construction and review of a formal Investment Policy Statement, which is essentially the charity s investment brief and instruction to us. This will include all the charity s investment objectives, such as income levels or investment restrictions, which then allows us to tailor an investment portfolio to meet the charity s unique requirements. www.bham.co.uk
06
Central to our approach is a steadfast belief that a client s risk tolerance is the fundamental and unequivocal foundation for portfolio construction. www.bham.co.uk
A dynamic approach We provide clients with a refreshing, innovative and dynamic approach to investment management and strive to add value throughout all stages of our discretionary service. Risk management Bartholomew Hawkins Asset Management has developed proprietary asset allocation software which allows us to identify investment-specific and portfolio risk. This forms the backbone of our investment process and ensures the identification, implementation and monitoring of risk is consistent across all clients. We establish risk at three levels: 1. IDENTIFICATION Our quantitative risk assessment questionnaires allow us to construct individual client risk profiles which provide the foundation for suitable and appropriate discretionary investment management service. 1.5 2. IMPLEMENTATION By understanding investmentspecific and overall portfolio risk, we can ensure our clients individual investment objectives and requirements can be achieved within their unique set risk tolerances. 3. MONITORING Once a client portfolio has been constructed it s paramount to monitor the on-going risk of that portfolio over time. As markets move up and down so does the inherent risk of a portfolio. In order to ensure that this movement in portfolio risk is kept within set tolerances, we incorporate sophisticated software that allows all client portfolios to be monitored on a daily basis. 1.25 MARKET VALUE GBP 1.0 0.75 0.50 MRS X 584,679 0.25 OUT OF LINE CAUTION INLINE NORMALISED DRIFT VALUE 08
Investment selection This is crucial to ensure that only the most appropriate investments are selected for inclusion within client portfolios. We allocate significant resource to conduct high levels of analysis incorporating both primary and secondary research. INVESTMENT SCREENS Bartholomew Hawkins Asset Management has devised a suite of automated quantitative investment screening tools that focus on identifying investments that provide consistent strong risk-adjusted returns. These tools are integral in making the investment selection process efficient and allow for additional rigorous qualitative analysis. Ethical screening QUALITATIVE ANALYSIS Each charity will have their unique views and requirements concerning ethical issues and socially responsible investment. By managing portfolios on a completely bespoke basis, each designed to meet the requirements set in the charity s Investment Policy Statement, we can ensure the portfolio adheres to any ethical restrictions placed on the management of the funds. www.bham.co.uk
Transparent fees value for money We are committed to a simple and transparent fee structure which allows trustees to understand exactly how much the charity will pay for our investment management services. Because we don t have shareholders or profit targets, it allows us to provide a competitive fee structure compared to many of our peers. Reporting and administration In addition to regular meetings, you will receive periodic valuations of the charity s investments in a format that is clear and easy to understand as well as on-demand access to the portfolio via our secure online portal. We have sophisticated software which enables us to provide you with comprehensive performance and portfolio information so that you can feel confident and reassured that the charity s assets are in safe hands. Nominee facility We use a nominee company to hold our clients assets on their behalf; it reduces costs and minimises paperwork. The safety of our clients assets will always be of paramount importance to us and subsequently we have appointed Pershing Securities Limited as our custodian to hold the charity s cash and investments. Founded in 1939, Pershing is a London based subsidiary of BNY Mellon (Bank of New York), which currently has $28.5 trillion of assets under custody*. A nominee company is a separate legal entity and its assets are not regarded as assets of Bartholomew Hawkins Asset Management, Pershing or BNY Mellon, therefore you can be sure that the charity s assets are safe should anything happen to these companies. Learn more about the safety of your assets in our comprehensive document: Protection of Client Money and Assets. 10 *Figure correct as of March 2015
5 Oaktree Court Cardiff Gate Business Park Cardiff CF23 8RS 029 2050 8002 www.bham.co.uk Email: justask@bham.co.uk Twitter: @bhassetman LinkedIn: bartholomew-hawkins-asset-management Bartholomew Hawkins Asset Management Limited is authorised and regulated by the Financial Conduct Authority (626359). Registered in England & Wales (08215198). Company Registered office: 5 Oaktree Court, Cardiff Gate Business Park, Cardiff CF23 8RS. RISK WARNING Past performance is not a reliable indicator of future performance. The information contained in this document has been prepared for information purposes only and does not constitute advice or a personal recommendation, nor does it constitute an invitation to purchase investments. It does not purport to be a complete description of our investment policy, markets or any securities referred to in the material, and should be read in conjunction with our Terms & Conditions, copies of which are available on request. The information on which the document is based is deemed to be reliable, but we have not independently verified such information and we do not guarantee its accuracy or completeness. Changes in exchange rates may have an adverse effect on the value, price or income of foreign currency denominated securities. The value of your investments and income derived from them may fluctuate and investors may not receive back the amount originally invested. The securities and investment services discussed in this document may not be suitable for all recipients. Bartholomew Hawkins Asset Management Limited recommends that investors independently evaluate particular investments and strategies and encourages investors to seek the advice of a financial planner. The levels of taxation and their respective treatment depend on your individual circumstances and the applicable law, which may be subject to change in the future. The appropriateness of a particular investment strategy will depend on an investor s individual circumstances and objectives. BHAM004 JUNE15