OCM Asset Management - Trustees / Deputies & Charities

In recent years, receiving advice in relation to asset management for Trustees / Deputies and Charities was focussed on the big banks and fund managers living on brand awareness, advocating the reason for staying with them was down to their financial strength and performance. The financial strength has over the last couple of years become irrelevant and as fund managers have been constrained by the mandate of the fund many clients saw their assets decline substantially as markets deteriorated and they were unable to go to cash or gilts to protect asset values. These issues have caused trustees / deputies to question everything that they have done historically and in our opinion the focus is now on the delivery of a robust, outcome based management of assets on an independent basis.

For Charities and large trusts it has been common in our experience for them to complete a beauty parade of three or four fund managers and then appoint a single asset manager (or common investment fund manager) to manage the assets over a three year period. The problem with this approach is that the manager is constrained by mandate and will manage the assets, irrespective of prevailing economic conditions in line with the mandate of the fund rather than in line with the "Outcome" (annualised return in line with inflows and outflows of capital) that the individual client is looking to achieve. Managing assets in line with a defined outcome means using different fund managers and assets at different times and to do this you have to use an Independent Discretionary Asset Manager like OCM Asset Management who sit between the corporate entity and the fund management industry, with the focus on driving up returns, driving down costs and delivering a defined outcome year on year. 

OCM Asset Management is the corporate arm of OCM and specialises in providing this service. When we work with a client we agree a mandate after we have defined the outcome with risk management and portfolio construction being appropriate to the outcome that is required and the assets a client is prepared to invest into, specifically excluding sectors they do not wish to invest. We then build an appropriate portfolio using common investment funds, passive managers and active managers where appropriate and use agreeable assets. Once the portfolio is in place using many fund managers on institutional terms we then manage and report on the asset return and asset structure and pro actively manage the assets to achieve the outcome.

Using this strategy for existing clients in this sector we managed to significantly reduce risk and take very protective stances on the portfolios in both 2001 and 2008 by using Gilts and Cash whilst at the same time delivering the required "Outcome".

Benefits of using OCM Asset Management services to clients are:-

1. Truly independent, impartial advice on a fee basis;
2. A full Information and Partnership Programme with every client, which aims to work with and define the Investment Policy Statement. Whilst doing this, we will prepare and build a Strategic Cash Flow Model which will look at expected inflows and outflows of capital, as well as what annualised return is required on the portfolio, to satisfy all objectives and define the "Outcome". The return required then dictates what investment risk is acceptable and that then links back to the Investment Policy Statement, giving a full audit trail for any external inspectors.
3. We build an Asset Management Strategy based on what is available from the whole market place linked to your objectives and provide a report on this, including our recommendations. 
4. Once the Asset Management Strategy is agreed, we carry out the implementation and alterations not the Bursars or Trustees. This has the benefit of removing the entire administration burden associated with being proactive.
5. After the assets are in place, we will then at agreed intervals, provide a report on how the Asset Management Strategy is working in comparison to the Investment Policy, so that the Trustees know that the assets are being managed correctly. This report acts as strong due diligence for the Trustees to monitor what we are doing and shows they are discharging their duties professionally.
6. A controller not a holder of your money. This means that we can move your money from one provider to another, but it is always held in your name not ours. Any movement is always reported on in full every six months.
7. We agree all fees in writing and do not lock clients into long term contracts, which means that if we do not add value or deliver what is promised, then we can be fired.

At OCM Wealth Management, this is what we do on a day to day basis and if you are not receiving the service defined above, you should and definitely need to speak to us. We are a leading firm that has been dealing with Charities and Trusts for many years and have experience in dealing with the unique issues that come with this sector.