Workshop 1 with GAM

New angles on diversification after 2008

GAM looks at some of the lessons learnt following the global economic crisis in 2008 and how to prepare for future risks, such as the re-emergence of inflation. After the collapse of Lehmans, risk assets fell sharply in unison and in most cases liquidity dried up; the only safe haven was government bonds. This was the second major bear market of the decade meaning most equity indices have significantly underperformed cash and the UK RPI over the last ten years.

2009 saw a sharp recovery from such depressed levels but looking ahead there are many obstacles. This workshop examines the appropriate exposure to equities and what other sources of return are available which offer true diversification while still protecting capital against inflation and providing a meaningful surplus for spending.

Workshop 2 with CCLA

Total return: golden goose or just another turkey?

Adopting a ‘total return’ approach has brought many charity investors a new freedom to select from a full range of opportunities, unconcerned about whether a particular investment is expected to generate income or just capital gains. But has the trend had unintended consequences? Heather Lamont, client investment director at CCLA, will look at the pros and cons of total return, and how to avoid some potential pitfalls.

Workshop 3 with Newton

Mitigation of risk through SRI and sustainable investment

How may Socially Responsible Investment (SRI) and an emphasis on sustainable investments help mitigate risk within a charity portfolio and also for the charity itself? Newton charity fund manager Gemma Woodward and SRI officer Amanda Young explore these issues in light of the current investment climate.

Workshop 4 with Stenham

The role of the absolute return approach in charity portfolios

The realisation that investors’ requirements are typically not relative to commonly used benchmarks such as FTSE 100 has increasingly led to traditional asset managers modifying their strategies to focus on delivering absolute rather than relative returns. Recent developments in regulation now permit more managers to use a broader set of investment techniques to deliver returns when markets are performing well but also preserve capital when they are not. This has encouraged many traditional investment managers to use techniques and instruments originally pioneered by hedge funds where their use has been commonplace for decades. Stenham’s director of charities, Harry Wulfsohn, considers what we mean by absolute return investing and how charities can benefit from this approach. He will also consider the risks and the opportunities in the current market and why this approach is so well positioned to deliver over the next phase of the market cycle.

Workshop 5 with Schroders

Inflation, the curse of charities … and financial markets

Alan Brown, chief investment officer at Schroders, examines the challenges for long term endowments and foundations. Hurt by a combination of falling asset prices and declining interest rates in the noughties – what does the next decade have in store? Alan will discuss a new approach to asset allocation and looks at how it might help charitable investors protect their portfolios against the potential for higher inflation

Workshop 6 with Beeson Maisey

Do I need an investment review?

This workshop focuses on the overarching duty of trustees to maximise returns from their investments within acceptable boundaries of risk and volatility.

Areas covered include:

• an overview of trustees’ roles in relation to their investments, whether in endowed or free reserves;
• an analysis and discussion of the growing range of investment styles and strategies;
• the drivers in charities’ circumstances and needs which point to a review of investments or their investment manager.

Workshop 7 with GAM

New investment strategies under UCITS III

We hear much about UCITS III. These are funds that are approved and regulated under European rules. The new rules have extended the investment powers of regulated open ended funds. What do the new rules mean? What benefits do they bring to investors? Will they really allow hedge fund strategies and alternative strategies to be brought onshore in transparent liquid form? Who should be investing in such funds and why? Are they appropriate for charities?

Workshop 8 with CCLA

Who’s eating your lunch?

John Kelly, head of client investments at CCLA, lifts the lid on costs and charges in the investment world, and suggests some questions your manager may not want you to ask.

Workshop 9 with Newton

Investment themes and how they drive charity investors to opportunities and returns

Investment themes are a practical filter for identifying growth opportunities as well as managing risk within portfolios. Jamie Korner and Peter Henderson of Newton will explore the global financial markets and economies and highlight how the use of themes can be used to achieve a charity’s investment objective.

Workshop 10 with Barings

Why charities are turning to targeted return?

James Codrington, head of charities at Barings, explains why more charities are turning to an approach that seeks to deliver consistent real or targeted returns, an approach that puts as much importance on preserving capital in the bad times as growing it in the good and an approach that aligns the interests of both the charity and the investment manager. James will also explore the problems with benchmarking and how it is forcing trustees to think differently.

Workshop 11 with Farrer & Co

Changing investment managers/investing in a new fund

Charities are increasingly willing to change investment manager and/or investment funds when performance is not satisfactory or for other reasons. What is the process and potential pitfalls when changing investment manager or investing in a new fund. What are the powers and responsibilities of charity trustees and how should they go about the process? What legal documentation is involved, and what provisions in your investment management agreement should you look out for or seek to negotiate?

Following the Madoff scandal the importance of due diligence on investment funds in particular investor due diligence has been highlighted. What type of review should be conducted and to what level of detail, taking into account the standard of care expected of the trustees or their delegates?

Workshop 12 with Lloyds TSB

Bridging the gap between deposits and investment management

Almost exclusively within the charity sector we see cash and investments being managed either by short term cash deposits or actively by investment managers. With interest rates at historic lows and increased volatility in equity markets, there is a middle ground where capital can be protected at the same time as managing the risks of fluctuating interest rates and equity markets. Lloyds TSB pose the question "should capital protected, structured products feature in your portfolios?”.