Investment Policy Statements and reviewing your investments
James Brennan, Chartered MSCI
18th June 2012
Agenda
•
•
•
•
Apostleship of the Sea
Investment Policy Statements
The review process
Conclusion
2
Apostleship of the Sea (AoS)
•
Founded in 1922
•
Providing frontline support to seafarers
•
13 Chaplains covering UK ports
•
In 2010 we...
Visited 9,547 Ships
Assisted 190,940 seafarers
•
We are reliant on voluntary contributions
3
Why did we review?
•
Received a large single legacy
•
•
about 9 times what we would normally get in a single year
Desire for increased income
•
in order to do more for our beneficiaries
•
Undertaken as part of a broader review to include cash management
and banking
•
Review to be led by Finance and Investment Sub-committee (Four)
who were empowered to carry out the review and implement changes
4
Part 1 – Investment Policy Statement
•
•
•
Reviewed our existing Investment Policy Statement (IPS)
•
Was it still relevant?
•
Was it aligned with our objectives? (Income/Ethical etc.)
Rewrote it
•
IPS is the rulebook for your investment manager
•
Keep it simple and concise
Charity Finance Group/Charity Investors Group Guidance
5
Part 2 – Manager Survey
•
Surveyed 12 Managers to include incumbents
•
Questionnaire - What was important to us?
•
•
Performance
•
Fees
•
Service
Asked for a ten page response – no more
6
Part 3 – Deciding the shortlist
•
Collated the nine responses – with a scoring system
•
•
Also made notes on all managers upon “softer” issues
We discussed the results and decided on a shortlist of four
7
Part 4 – The beauty parade
•
Each manager given 20 minutes to present and 20 minutes for
questions and answers.
•
15 minute gap between each presentation.
•
Allowed an hour afterwards for a discussion.
•
Decision made on the day
8
Conclusion
•
Investment Policy Statement must be the starting point
•
An investment sub-committee streamlined the process
•
If necessary seek professional advice
9
Questions?
James Brennan
Business Development Director - Rathbones
james.brennan@rathbones.com
0207 399 0359
Performance – Rathbone Absolute Return Funds
Total Return (LIBOR+2%) and Strategic Growth (CPI+5%)
%
35.0
31.7
30.0
27.4
25.9
25.0
20.0
15.0
10.0
5.0
7.9
3.3
10.5
9.2
8.9
3.3
8.7
3.2
0.3
0.0
12 months to 31/03/12
Since launch (cumulative)
Rathbones Total Return Fund
Cash (LIBOR+2%)
Annualised
Rathbones Strategic Growth Fund
CPI+5%
Past performance is not a guide to future performance
Source: Rathbones as at 31/03/12; performance shown is that of the Rathbones Total Return Portfolio Fund & Strategic Growth Fund, bid-to-bid, net of fees. Launch date 10/06/09.
11
Segregated portfolio fee structure
Up to £1 million:
0.70%
£1 to £5 million:
0.60%
£5 to £10 million: 0.50%
£10 to £30 million: 0.40%
Our charges include:
•
•
•
•
•
Trustee meetings, seminars, workshops and training sessions
Use of our offices in London and nationwide for trustee meetings
Full nominee and safe custody facility
Full administration and reporting
Online access to portfolio valuations and cash transaction history
There are no dealing charges – and Rathbones will absorb all commission paid to any
broker acting as agent for all transactions
We believe in clean and transparent fees
12
Active Income Fund for Charities
A pooled fund alternative to a segregated portfolio; same team, same level of
service, same investment approach
•
0.50% Annual Management Charge; no initial charge
•
Capped Total Expense Ratio of 0.70% (at most)
•
Objective of delivering CPI + 4% (gross) on a three year rolling basis
•
Part of which will be in the form of a sustainable yield – currently c.3.3%
•
Active asset allocation
•
Simplified administration
•
One line of stock
•
Income distributed quarterly (accumulation units also available)
•
Quarterly reporting, monthly commentary
•
Daily dealing
•
No direct investment in companies with more than 20% of their turnover from tobacco, gambling,
prostitution or pornography
•
Direct access to fund manager
Aiming to repeat earlier success
13
Ethical investing
Our commitment to responsible investment:
•
Signatory to the UN Principles for Responsible Investment
•
Signatory to the Carbon Disclosure Project
•
Long-standing member of the UK Sustainable and Investment Finance Association
•
Long-standing member of the Ecumenical Council for Corporate Responsibility
•
Founding endorser of the Forest Footprint Disclosure Project
•
Regular engagement by Rathbone Greenbank (ethical specialists based in Bristol)
•
Constituent company in the FTSE4Good index
Strong ethical resource – in keeping with the company’s roots
14
Rathbones’ charity team
Collegiate approach - no single man risk and no capacity issues
Julian Rathbone
Investment Director
Adrian Maxwell
Investment Manager
Will McIntosh-Whyte
Investment Manager
James Pettit
Investment Manager
Dick Boddie
Investment Manager
Alex Turnbull
Investment Director
Christopher
Godfrey-Faussett
Investment Director
Jenna McCabe
Charity Marketing
Ivo Clifton
Head of Charities
Alex Dow
Investment Director
Georgina Hand
Investment Director
Gary Street
Investment Director
A growing team – three joiners in recent years
15
Your team
James Codrington – Investment Director
Direct Line:
020 7 399 0006
James joined Rathbones from Barings, where he was Head of Charities for ten years, with a focus upon absolute
return mandates, and where he managed the Targeted Return Common Investment Fund, one of the fastest growing
charity funds in recent years. James previously worked at Deutsche Asset Management, Lazard Brothers and
Teather and Greenwood, all in charity investment roles. From 1988 to 1994, he served in the British Army. James
has an MA (First Class) in Modern History from Oxford University, has written numerous articles on absolute return in
the charity press and is a regular speaker at charity events and investment conferences.
James Brennan – Business Development Director
Direct Line:
020 7 399 0359
James joined Rathbones from Barings, where he spent four years building their UK Charity business with a focus
upon absolute return mandates. James has previously worked at Collins Stewart, CCLA and Coutts all in charity
focused roles and has fifteen years of investment experience. James is a chartered member of the Chartered
Securities Institute, a Charity Trustee and a founder member of the Charity Trustees Investors Association.
Ivo Clifton – Head of Charities
Direct Line:
020 7 399 0338
Ivo Clifton is head of the charities team. He joined Rathbones after graduating from Edinburgh University in 1991 and
qualified as a Fellow of the Securities Institute in 1995. Ivo was appointed an investment director of Rathbone
Investment Management Limited in 1999 and to the executive committee in 2006. He specialises in the management
of charity and private client portfolios and is a member of the Charity Law Association and the Charity Finance
Directors Group.
16
Recognition and awards
We are proud of our reputation and of the awards we have won in recent years. Below we have
highlighted a number of the awards we have won and been shortlisted for since 2007:
Investors Chronicle/FT
Winner of the ‘Best Wealth Manager for Alternative Investments 2012’
Investment Week
Winner of the ‘Discretionary Company of the Year – Collectives Research 2011’
Citywealth
Nominated for the ’Citywealth Awards 2010’
Investors Chronicle/Financial Times Wealth Management Awards
Shortlisted for ‘Best Wealth Manager for Charities 2009’
Shortlisted for ‘Best Wealth Manager 2008’
Shortlisted for ‘Best Charity Fund Manager 2008’
Charity Times Awards
Winner in 2008 and 2009 of ‘Investment Management Award’ (in partnership with the Charity Commission and the
Community Foundation)
PWM/The Banker Private Banking Awards
Highly commended for ‘Best Private Bank for Innovation 2009’
Liverpool Business Awards
Winner of the ‘Financial Services Award 2009’
North West Top 100 Brands
Winner of ‘Top Professional and Business Services 2007’
’
17
Growth of our charity business
£150m of new mandates won in 2011
1800
1600
Asset growth, £m
1400
1200
Rathbone Funds
Under Management
1000
800
600
400
200
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
The growth in charity funds under management includes organic growth and new funds. The graph is not a measure of investment performance.
Source: Rathbones as at 31/12/11.
18
Rathbones: about us
•
One of the UK’s largest and longest-established providers of
high quality, personalised discretionary investment
management services for individuals and trustees
•
An independently-owned FTSE 250 company
•
£15.85 billion in funds under management of which
£1.7 billion are charitable funds managed on behalf of over
1,000 UK charities
11 UK
locations
•
Around 200 investment professionals in eleven UK locations
•
Low staff turnover amongst investment management staff
•
The majority of staff are shareholders in the firm
Source: Rathbones as at 31/12/11.
Around
180
Investment
professionals
19
Rathbone Investment Management
Head office
1 Curzon Street
London W1J 5FB
Tel 020 7399 0000
1 Albert Street
Aberdeen
AB25 1XX
Tel 01224 218 180
1 Northgate
Chichester
West Sussex
PO19 1AT
Tel 01243 775 373
Port of Liverpool Building
Pier Head
Liverpool
L3 1NW
Tel 0151 236 6666
Temple Point
1 Temple Row
Birmingham
B2 5LG
Tel 0121 233 2626
28 St Andrew Square
Edinburgh
EH2 1AF
Tel 0131 550 1350
Fiennes House
32 Southgate Street
Winchester
Hampshire
SO23 9EH
Tel 01962 857 000
10 Queen Square
Bristol
BS1 4NT
Tel 0117 929 1919
The Senate
Southernhay Gardens
Exeter
EX1 1UG
Tel 01392 201 000
Rathbone Greenbank Investments
(Specialist ethical investment service)
10 Queen Square
Bristol
BS1 4NT
Tel 0117 930 3000
North Wing
City House
126-130 Hills Road
Cambridge
CB2 1RE
Tel 01223 229 229
The Stables
Levens Hall
Kendal
Cumbria
LA8 0PB
Tel 01539 561457
Jenna.McCabe@rathbones.com
www.rathbones.com
20
Important information
The value of investments and the income from them may go down as well as up and you may not get back your
original investment. Past performance should not be seen as an indication of future performance. Changes in
rates of exchange between currencies may cause the value of investments to decrease or increase.
Information valid at date of presentation. Tax regimes, bases and reliefs may change in the future.
“Independent” – shall be construed to refer to the basis of Rathbones’ ownership as a corporate entity, and not
to our use of Non-Life Packaged Products for our Advisory or Non-Discretionary Investment Management clients
(and “Independence” shall have an appropriate meaning accordingly).
Issued and approved by Rathbone Investment Management Limited which is authorised and regulated by the
Financial Services Authority. Registered office: Port of Liverpool Building, Pier Head, Liverpool, L3 1NW,
Registered in England No. 1448919.
Rathbone Unit Trust Management is authorised and regulated by the Financial Services Authority.
No part of this document may be reproduced in any manner without prior permission.
© 2012 Rathbone Investment Management Limited. All rights reserved.
21