Fulfilling the duty to take advice
Trustees must seek advice from someone experienced in investment matters unless they have good reason not to. Investment consultants provide this expertise, offering independent, professional guidance tailored to the charity’s objectives, risk appetite, and governance framework. This ensures trustees are not relying solely on internal knowledge or investment managers, and that decisions are informed by market insight and regulatory understanding.
Supporting suitability and diversification
Consultants help trustees assess the suitability of investments in relation to the charity’s financial needs, time horizon, and ethical considerations.
Trustees also design diversified portfolios that reduce risk and align with the charity’s mission. This directly supports the legal requirement to diversify investments and manage risk responsibly.
Enhancing oversight and review
Investment consultants provide structured reporting and performance analysis, enabling trustees to monitor investments effectively. This includes benchmarking, attribution analysis, and regular reviews of manager performance. These tools help trustees fulfil their obligation to review investments periodically and ensure they remain appropriate.
Clarifying governance and ESG policy
Consultants assist in drafting or refining investment policy statements, including ESG and ethical investment criteria. This helps trustees act in the charity’s best interests and manage reputational risk, particularly where investments may conflict with charitable purposes. It also supports transparency in reporting and accountability to stakeholders.
Building trustee confidence and capability
Beyond technical advice, training and induction sessions can be delivered to trustees, improving understanding of their legal responsibilities and the fundamentals of investment governance. This empowers trustees to engage meaningfully in discussions, challenge constructively, and confidently contribute to strategic decisions.
In short, you should expect any investment consultants to ask not just as a financial adviser, but as a governance partner. Their involvement should strengthen your board’s ability to meet Charity Commission expectations, protect your charity’s assets, and deliver long-term impact.
Case studies |
A charity board commissions an educational report to clarify legal duties and investment strategyA trustee board commissioned an educational report to help trustees understand their legal responsibilities under the Trustee Act 2000 and Charity Commission guidance. The report explained the risks of holding excessive cash in inflationary environments and presented a range of investment options tailored to the charity’s liquidity needs and time horizon. This enabled the board to move forward with a clearer understanding of their role and the importance of long-term planning. |
A trustee board refines its investment policy to balance ethical values with financial performanceIn response to growing interest in ethical investment, a trustee board engaged us to review the charity’s investment policy and clarify ESG restrictions. We supported trustees in balancing financial return with ethical considerations, and implemented bespoke benchmarks to assess manager performance. Our macroeconomic analysis and performance attribution reporting enabled trustees to challenge investment decisions constructively and ensure alignment with the charity’s mission. |
A professional membership organisation enhances trustee capability through bespoke training and governance reviewA professional membership organisation asked us to deliver tailored training for trustees, covering investment risk, ESG integration, and governance responsibilities. We also facilitated a board effectiveness review and helped trustees define their risk appetite and assurance needs. This work strengthened trustee confidence and improved oversight across the organisation. |
What key steps can your trustee board take to effectively oversee your charity’s investments?
Trustee boards that prioritise investment governance are better placed to protect their charity’s financial future and deliver long-term impact. Key steps include:
- Ensuring trustees receive tailored training on investment governance and ESG
- Reviewing the board’s skills mix and identifying gaps in financial or investment expertise
- Facilitating regular performance reviews of investment managers and strategy
- Appointing an investment consultant to provide independent advice and support
- Encouraging open dialogue between trustees, executive teams, and external advisers
Well-supported trustees make better decisions. By engaging with investment consultants, boards can ensure their charity is not only compliant with Charity Commission guidance but also confident and capable in its financial oversight.
Get in touch to see how we can support your board with strategy, training and governance
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The role of trustees in charity governance
Trustees are instrumental in charity governance, playing a vital role in overseeing the management and running of charities. Trustees are almost always unpaid volunteers, and there can be a significant demand on their time. So, what is required of trustees? Are charities making the most of the skills and knowledge their trustees bring? And what can you do to support your trustees?’
How can charities manage compliance requirements?
Charities are often operating in a highly regulated environment, with non-compliance risking significant financial and reputational impact. In the face of changing requirements, what can you do to feel more confident that your charity is effectively managing its compliance risk?
Why internal audit matters for charities
Internal audit is increasingly recognised as vital to helping charities operate with integrity, effectiveness, and accountability. But what exactly is internal audit, and how can it help your charity navigate challenges and make the most of opportunities?
National contacts
James Hunter-Jones Associate Director - Investment Management - London
Ben Seager-Scott Chief Investment Officer - London
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