Charities should steer clear of employing too many fund managers, Lord Paul Myners told an audience of charity finance professionals at this year's Charity Investment Forum yesterday.

Drawing on his breadth and depth of experience across both the financial world (he is an ex-chairman of asset manager Gartmore and Marks & Spencer) and not-for-profit sector (as chair and trustee of several charities), Lord Myners entertained and engrossed the audience of investors and charity representatives with his keynote speech ‘What next?’

“Keeping it simple is the right approach,” the former Financial Services Secretary at HM Treasury said. “Decide what you want and then work towards that aim. Know your objectives and stick to them.

“But, of course, focusing on your goal can be hard. So avoid employing too many fund managers. In fact, you don’t have to have the best, only someone who is good enough. It’s important to keep your relationship with your fund manager simple, too – less contact is preferable. And don’t be afraid to ask your manager what he or she would invest their money in!”

Lord Myners also extolled the virtues of having a diverse portfolio to cope with a volatile investment climate (“We’re in an environment of low returns”), and warned that it is crucial to keep a watchful eye on costs (“You can manage costs”).

Despite the harsh truths he laid out, Lord Myners left the audience on an optimistic note reciting Abraham Lincoln’s famous assurance: “And this too shall pass away”.