Charities & Trusts

Over the last decade, guidance for Trustees has clearly been set at delivering objective based principles. In reality this means that the Trustees mandate with the Investment Manager should be about delivering an agreed outcome in line with the objectives rather than trying to beat the market.

Our philosophy clearly meets many if not all of the principles set out by Paul Myners in 2001, when he outlined his report on institutional investment.  He stated:-

“Clear objectives, meeting liabilities, not beating market indices or peer groups, ought to be the basis of investment policy”

The Myners principle was originally aimed at pension Trustees, but has now been widely adopted in the wider Trustee landscape. In 2003 the Association of Chief Executive of Voluntary Organisations (ACEVO), through a committee chaired by Lord Young, adapted the original Myners Principles specifically to address the issues facing charities. In its report, it stated:-

“A charity’s investment allocation should reflect its objectives and requirements, not the average allocation of a peer group of funds” &  “Charities should establish appropriate benchmarks, which relate directly to their investment objectives”

Finally to reinforce the change in focus of the regulation, the Charity Commission updated guidance on investing and stressed the importance of establishing the organisations goals by:-

“Being clear about exactly what the organisation is trying to achieve by investing in funds. This will be different for each charity and will depend on its aims, operating model, timescales and resources”

Therefore the OCM philosophy in designing a strategy and matching the strategy with the investment strategy adopted is perfectly aligned to the modern regulations and focus of all trustees in this modern world.