Investment performance – managing the risk

managing risk - charity consultancy

Our analytical quarterly Peer Reports take data from circa 250,000 live client portfolios to ensure your manager is a credible performer and is managing risk appropriately.

This ensures that each quarter you can be confident that the portfolio is reviewed, with appropriate action taken if required.

Investment performance – managing the risk

A sport related charity approached Generation Charity Consultancy with a portfolio of £30million, invested directly with a large Discretionary Fund Manager. Their monitoring of the portfolio consisted of an annual presentation from the fund manager and measured against a target set by the fund manager, a fairly standard approach.

We highlighted that any fund manager review would only be a positive one as the DFM would not risk the relationship by highlighting their faults or peer underperformance. This was further underlined by the public reports & accounts where they confirmed the benchmark was the FTSE All Share & UK Fixed Interest.

However, the same document confirmed the portfolio was a globally diversified portfolio. Therefore, the performance presented to the Charity looked like they were performing well but against a completely irrelevant benchmark. This approach is clearly smoke and mirrors and unfair to the investor.

Outcome
The charity asked us for an independent review of their current arrangement and our recommendation was to move to a bespoke portfolio with targets set by us and the client.

Share this Case Study

Other Investment Case Studies

sifa-logo
Generation Charity Consultancy is listed in the SIFA Directory of Professional Financial Advisers which is endorsed by the Law Society.