Regular investment reviews are vital for charities to ensure alignment with objectives, risks, and comply with regulations. We offers independent review services to assess performance, risk, and adherence to investment policies, helping trustees fulfil their duties effectively.

Why regular investment reviews matter

In addition to the need for strong governance, regular reviews help trustees and senior management monitor performance, adjust strategies, and ensure that the charity’s invested assets continue to align with its best interests. By reviewing performance, trustees can assess whether their investments remain aligned with their objectives and if the solutions are still competitive. Furthermore, reviews offer a crucial opportunity to ensure that risks are properly managed, ethical goals are met, and investments are adapting to evolving market conditions.

The Charity Commission’s expectations

The Charity Commission’s CC14 guidance outlines several expectations for trustees regarding the monitoring and review of charity investments:

• Regular Monitoring and Review: Trustees are expected to actively and independently monitor and review both the performance of their investments and the role of their investment managers.

• Reviewing Investment Policies: Trustees should periodically review their investment policy to ensure it remains aligned with the charity’s objectives and is relevant to current market dynamics.

• Documenting decisions: Trustees must maintain records of investment decisions and the rationale behind them to demonstrate due diligence and accountability.

We recommend that reviews be conducted independently of the investment managers at least once a year, or more frequently if the charity's objectives or needs change. This ensures an unbiased evaluation of both performance and risk.

By conducting thorough reviews, managing risks, and staying compliant with regulatory requirements, charities can optimise their investment performance and ensure trustees are fulling their duties.

How Buzzacott can help

Buzzacott's expertise in investment consultancy for charities ensures that your organisation receives tailored, professional advice. Our comprehensive review services help you monitor performance, manage risks, and adapt to market changes, ensuring your investments support your charity’s mission. We offers comprehensive investment review services tailored to the unique needs of charities. Our expertise in the not-for-profit sector ensures that your charity’s investments stay on track relative to objectives and risk and that trustees are fulfilling their duties. Our investment consultants provide independent regular investment review reports. These reports provide a record of review and help meet the requirement of Trustees to review their investments independently from their investment managers. They review areas such as:

• Performance: Independently reviewing investment performance and assessing your manager’s performance against relevant benchmarks and industry averages for your risk level.

• Risk: Monitoring the ongoing risks associated with your charity’s investments and their appropriateness.

• Asset allocation: Ensuring that this remains appropriate for your charity’s objectives and risk level and highlighting any notable changes your mangers are making.

• Charges: Considering all ongoing charges for your investments to ensure that they remain appropriate and competitive.

• Alignment to your charity’s IPS: Ensuring that your investment manager is adhering to all elements of your Investment Policy Statement and any restrictions. We can also help hold your investment manager to account on your behalf.

• ESG: If your charity has sustainable investing, ethical, or Environmental Social and Governance (ESG) objectives, we review and report on how your portfolio is performing relative to these and raise any areas of concern.

In addition, we help hold your investment managers accountable to ensure they meet your charity’s expectations. For more information or to speak with one of our specialists, please fill out the form below and we’ll be in touch.

Some investment consultancy services may not be available to existing Buzzacott audit clients.

This insight has been prepared to keep readers abreast of current developments. Professional advice should be taken in light of your charity’s circumstances before any action is taken or refrained from.