Finance | Gareth Jones | 29 May 2009

Gareth Jones examines the role of investment advisers for charities

The Trustee Act 2000 holds that before exercising any power of investment, trustees must obtain and consider proper advice, unless the size of investment funds are so small that it would not be cost-effective to do so. It was the introduction of this provision coupled with the loss of funds by many charities in the bear market of 2003 which have led to the rise of the dedicated investment adviser, bridging the gap between the charity and the fund management community and offering an objective eye. While once this profession was mostly limited to advice on handling pension funds, now the role can encompass every element of the creation and implementation of a successful investment strategy.