What is a good benchmark?
What is the Charity Commission guidance on benchmarking performance?
For charities not based in England and Wales, we would recommend adopting this as best practice.
Statement of investment policy
Writing a statement of investment policy may seem like a daunting task. However it shouldn’t be and here is our guide to help charities construct their policy.
How we set up benchmarks?
When determining benchmarks it is important that the charity is happy with the proposed comparators and does not feel that benchmarks have been imposed rather than agreed. Therefore whilst we will always propose comparison benchmarks, we will always discuss these with the Trustees in order to agree a suitable and mutually acceptable benchmark.
We always show performance net of all fees and costs against benchmarks in order to show the returns achieved for the charity net of all costs.
Peer group benchmark
Long-term inflation plus objective benchmark
Relative benchmark example
In the short term the value of the portfolio will fluctuate and therefore we would use relative benchmarks which may be a composite of market indices. For a portfolio pursuing a target return CPI plus 3.5% annualised over the longer term within a medium risk profile, we would recommend the following benchmark and ranges which reflect our long-term asset allocation to achieve the targeted return.
Quilter Cheviot current positioning (as at 1.5.2017)
Long-term strategic asset allocation and benchmark
If you want to know more
Subscribe to trustEnews
Are you a trustee? Or just interested in the charity sector? trustEnews aims to help trustees keep on top of the charity sector.
What people say
“This is one of the best newsletters of this kind I have ever seen. Well written and informative on topics of genuine interest. I will certainly share it with my Board.”
Fabian French, CEO of UK Community Foundation