Investment management for charities Structured input, bespoke output
Our job is to offer you, as a client or potential client, a service of the highest possible standard delivered by high calibre people with expertise and integrity. It is as simple as that Jonathan Wragg, CEO 2
Proud custodians of charity investment Investec Wealth & Investment is significant in size whilst retaining a clear commitment to dealing with each client on a personal and individual basis. With over 80 years of charity investment management experience, Investec Wealth & Investment remains true to our enduring principles: to provide an outstanding investment service for charities that is based on common sense, innovative and bespoke investment decisions and a dedication to open and direct communication with our clients. 3
Understanding the charity sector Investec Wealth & Investment has over 1,100 charity clients, the largest of whom are managed by our Charities team. The team is made up of specialists who understand the sector and its character and are dedicated to providing a wider range of services than just portfolio management. We offer a comprehensive educational programme, the AGENDA, to ensure that your trustees and officers are up to date with changes in charity regulation and governance and have a forum for their sector specific questions. Our semi-annual newsletter, Charity Matters, provides helpful insight into changing investment themes and issues affecting the sector. Furthermore, we publish a series of free guides including How to write an investment policy and another guide that aims to demystify investment jargon. We also look after sufficient numbers of charities in certain sectors that we are able to host periodic roundtable lunches for likeminded organisations through which they can discuss issues affecting their specific areas. 4
Devising an optimal structure to meet your objectives The first step towards advising you on the best way to meet your charity s objectives is getting to know your organisation. While many charities share similar financial goals we know that no two are exactly the same. Therefore, by working in partnership, together we can develop an individual investment approach that specifically fits your needs. over the medium to longer term and will take into account your capacity for and attitude towards risk. Furthermore, your bespoke solution will not be off the shelf or prepackaged. In fact, we rarely use in-house products, to prevent any conflict of interest, and we would never do so without first consulting you. The result is encapsulated in your bespoke Written Investment Policy, a Charity Commission requirement. This is based on your capital return and income requirements This process is not one-off. The direct relationship with your investment manager means they work with you to ensure the on-going suitability of your policy. Our Services to you Most of our clients around 80% - have a discretionary portfolio management service with us. This means that your charity s investment manager will manage your portfolio in line with specified investment objectives as agreed with you in accordance with your particular risk profile and investment policy statement. IW&I has full authority at our discretion to buy and sell particular shares, funds and investments without prior reference to you, and enter into any kind of transaction or arrangement for your account which is in line with agreed criteria. Your investment manager will take into account any pre-agreed ethical criteria. Discretionary portfolio management is preferred by most charities because, in short, it simplifies what can be a complicated investment management process. In this way, it is most often seen as the traditional wealth management service. An advisory management service is different: it means that your trustee board or investment committee retains full control over, and is responsible for, all investment decisions. IW&I will provide you with recommendations on the basis of your specified investment objectives and risk profile e.g. we may recommend that your charity invests in a particular fund or stock given your particular risk profile. Like a discretionary service, we will accept responsibility for the suitability of our recommendations and to the extent that clients follow these recommendations for the portfolio as a whole. We cannot, however, accept responsibility if our recommendations are not followed. 5
A collegiate approach to effective and innovative investing Our approach to investment involves both our experienced research team and those who know clients best: their investment managers. The investment process is driven by our Asset Allocation Committee which involves economic specialists, research analysts and senior investment managers discussing economics, world politics, valuations, future prospects and risks. The committee s decisions enable us to manage our clients assets on an active basis whereby we adapt portfolios to reflect the market environment and any changes that might have occurred in your circumstances. The final decision and responsibility for investment rests with your investment manager as they will be most familiar with your circumstances. We manage risk through the sensible use of diversification, and common sense We manage risk through the sensible use of diversification to ensure that any investment choices we make are not just suitable to your needs but also made with a liberal dose of common sense. 6
Accommodating your charity s ethical preferences and restrictions A consistently strong performance record We tailor the individual portfolio to the needs and the personality of each charity which is why we can adapt your portfolio to incorporate your ethical preferences. We use third party expertise to screen potential investments ensuring that your ethical constraints and preferences are met, and we have successfully done so without performance suffering in the medium term. Our investment process has proven successful time and again; our performance has been consistently strong against widely recognised charity benchmarks and bespoke benchmarks alike. We believe that generating incremental excess returns over time adds up to greater levels of outperformance. Making out sized returns one year is often caused by taking on too much risk; these periods are often followed by significant underperformance. This boom and bust mentality is not our style; it is unsettling for charities and inefficient over the longer term. 7
Encouraging long-term partnerships grounded in good communication We often win charity clients who have suffered frequent changes in their point of contact. We believe it is good business practice to attract and retain the right quality of staff and our Charities team members have, on average, been with the team for over 13 years. From the outset of our relationship, you will be allocated a lead investment manager based on your individual objectives and the personality of your organisation. Your investment manager is your first point of contact. We believe it is important that the person who invests your money knows you best, attends your meetings and answers your questions. Our clients respond to this personal one-to-one service; on average our clients stay with us for over ten years and many have been with us for considerably longer. Continuity of service is vital to us. Though you have a primary contact, we work together as a team to ensure an answer to your question is always available. 8
Meet the Charities team Louise Hall Head of Charities/ 24 years experience* John Hildebrand 27 years experience* James Minett 38 years experience* Michael Turner 15 years experience* John Ross 38 years experience* Elliot Bancroft 12 years experience* Bryan Burrough 33 years experience* Tom Quicke 6 years experience* David Richardson 29 years experience* Caroline Jarvis Charities Specialist 7 years experience* *Investment experience as at 31 March 2015. 9
A snapshot of our business What we do Experience counts The heart of our business is investment management for individuals, charities, trusts and clients of financial advisers. We invest on behalf of our clients on a bespoke basis, seeking the best and most tax-efficient returns on their capital at all times. Who we are The firm s foundation goes back to 1827 and our history is closely linked to the development of the financial sector in the United Kingdom. Historic stockbroking firms Rensburg, Carr Sheppards Crosthwaite and Williams de Broë form a proud part of our DNA. We believe that our firm is attractive to our clients because we are small enough to be agile and responsive but, at the same time, offer more resource, depth of expertise and robust systems compared with smaller firms. Investec Wealth & Investment is ideally positioned to help our direct and intermediary clients meet their long-term investment objectives. Many of our investment managers have been with us for over two decades, so you can be sure that the level of expertise available to you is of the highest quality and that our people are sincere about forming a long-lasting business relationship with you. Where we are The firm currently manages 27.8 billion* of funds for our clients from 15 specialist offices stretching from Edinburgh to Exeter. With the dynamism and strength of Investec Group to draw on for further expertise and resources as required, you can be assured of excellence and a business that prides itself on being there for our clients when they need us. *As at March 2015. Our approach allows us the freedom to build investment portfolios appropriate for the needs of each individual client, without bias. 10
The information contained within this brochure does not constitute financial advice or a personal recommendation. Investors should remember that the value of investments, and the income from them, can go down as well as up and that past performance is no guarantee of future returns. You may not recover what you invest. References to taxation are based on our current understanding of the legislation but we do not represent that it is accurate or complete and it should not be relied upon as such. Tax laws are subject to change. Bath 01225 341580 Belfast 02890 321002 Birmingham 0121 232 0700 Bournemouth 01202 208100 Cheltenham 01242 514756 Edinburgh 0131 226 5000 Exeter 01392 204404 Glasgow 0141 333 9323 Guildford 01483 304707 Leeds 0113 245 4488 Liverpool 0151 227 2030 London 020 7597 1234 Manchester 0161 832 6868 Reigate 01737 224223 Sheffield 0114 275 5100 investecwin.co.uk/charities Member fi rm of the London Stock Exchange. Authorised and regulated by the Financial Conduct Authority. Investec Wealth & Investment Limited is registered in England. Registered No. 2122340. Registered Offi ce: 2 Gresham Street, London EC2V 7QP. IWI009 v8 09/15