Investment Philosophy For Charities


Our investment philosophy is to ensure that our process is entirely open and understood. This works on the principle that the best returns are achieved when we work alongside the trustees and officers of the charity to foster clear and open communication.

For us it is important to understand the purpose of the investment portfolio. For some charities the portfolio is a critical (and potentially sole) source of income. For others, it represents long term reserves where the income is a key component in meeting a total return approach. We are mindful that the portfolio is there to further the charity’s objectives and therefore this has to be the guiding principle behind the structure of any investments.

Investment houses have become increasingly categorised as “value”, “growth” or “alternative”. Our belief is that the best results come from a mix of styles adapted to the market cycle; our objective is to identify future trends, and give these, due emphasis within portfolios, before they are arbitraged away.

All key Quilter Cheviot investment committees are chaired by, and include, individuals with client facing investment management experience. These committees provide guidance that investment managers utilise to implement investment strategies designed to meet the charity’s requirements.

In terms of flexibility, all investment managers must adhere to the 80/20 rule which prescribes that at least 80% of a portfolio’s assets must be taken from the firm’s monitored lists which are reviewed by our investment committees. The investment manager has a maximum of 20% to invest in ‘investment manager-led’ ideas. These ideas require a set standard of due diligence, for which the manager is responsible. The 20% flexibility allows us to tilt portfolios more specifically for the needs of each charity, within the context of a discretionary portfolio whilst ensuring the ‘house view’ is also sufficiently represented.