Fund manager fees – fees, performance and risk

In many cases Generation Charity Consultancy can substantially reduce fund manager fees, often by as much as half.

Fund manager fees –  how to reduce fees, improve performance and manage risk

The price of standard ‘off the shelf’ charity funds are competitive, but the Annual Management Charge is generally between 0.5% and 1.00%, regardless of the investment amount.

A majority will also have low minimum investments in the region of £1000-£5000 which provides access for all sizes of charity.

However, charities with larger long-term investments in ‘common investment funds’ do not normally have the opportunity to negotiate these charges, or have their own bespoke portfolios aligned to their investment wishes.

Here are some examples of cost savings:

A charity with over £5m should be able to negotiate – with Generation Charity Consultancy’s involvement – less than the standard fees and have access to specific portfolio managers and bespoke portfolio investment.

We were recently contacted by a charity with circa £30m invested in a Common Investment Fund. Our experts were able to secure an Annual Management Charge of 0.28% – including our fees – compared to their existing arrangement at 0.65%. A portfolio cost saving of circa £111,000 per year.

Due to our influence in the fund manager sector, we negotiated an annual fee of 0.4% for a charity with £2.5m to invest.

At Generation Charity Consultancy we are passionate about reducing fees, ensuring excellent investment performance and delivering robust risk management.

Outcome

With improved performance management, lower fees and enhanced risk management, clients can be assured of marked improvement in fund values.

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