Cartwright Charitable Trusts, specialists in helping charities build financial resilience, today said charities could be missing opportunities to make the most of their funds by sticking with legacy investment arrangements and generic, off-the-shelf portfolios.
Martin Mercer, Head of Cartwright Charitable Trusts, said: “Trustees face intense demands on their time and attention, alongside increasingly complex investment arrangements and fee structures. As a result, it can be challenging to maintain clear oversight of whether investments remain appropriate and represent good value for money. Over time, this can result in being placed into generic, off-the-shelf portfolios that prioritise administrative convenience rather than specific needs. This can be further compounded where there is a long-standing provider relationship and a reluctance to move away from the familiar.”
Mercer continued: “The key question for charities really needs to be ‘what role do these assets need to play?’ rather than focusing solely on returns. When portfolios are structured around cash flow requirements and how a charity actually operates – including liquidity needs, spending profile, time horizons and volatility tolerance – better alignment and value can be achieved without increasing risk or cost.”
Mercer concluded: “Poorly aligned investment arrangements can have a tangible impact on a charity’s operations. Restricted liquidity may limit the ability to fund vital programmes, while excessive fees erode the resources available for beneficiaries. In contrast, portfolios that are tailored to the charity’s spending profile and mission can help ensure funds are available when needed, reduce unnecessary costs, and support long-term goals. Trustees who take a structured approach to reviewing investments can strengthen financial resilience and make every pound count towards delivering their charitable objectives. Even a simple review of existing arrangements can help trustees confirm their investments remain fit for purpose.”
