Understanding goals and objectives: Clarity of a charity's goals is essential to align the investment strategy with the organisation’s mission and long-term objectives.
Calibrating risk capacity and composure: It is crucial to understand the charity's financial capacity to withstand risk and the stakeholder's comfort level with risk to ensure long-term adherence to the investment strategy.
Preparing appropriate Investment Policy Statement (IPS): An IPS is a roadmap for investment processes, maintaining accountability and alignment between investment decisions, charity's objectives and risk parameters.
Advising on governance and oversight regime: Good governance and oversight protect the integrity of the investment process, reduce legal risks and fosters trust among stakeholders.
Establishing Strategic Asset Allocation methodology: Determining the target distribution of assets across different asset classes forms the foundation of the investment strategy, shaping its expected returns and risk level.
Identifying suitable investment managers: Choosing the right managers, based on their expertise, style and track record, is critical for implementing the investment strategy and achieving objectives.
Arranging implementation and execution (where required): This involves putting the investment strategy into action, ensuring compliance with regulations and managing transaction costs.
Providing on-going monitoring, counsel and guidance: Regular review and adjustments of the strategy, in response to market dynamics and changes in charity's financial situation ensures the strategy stays on track.