Non-Profit portfolio service has been launched for charities overlooked by asset managers
- 03 Sep
Sturgeon Ventures, a regulatory incubator, has launched a non-profit fixed income portfolio management service for charities that they believe have been overlooked by large fund managers. They believe that short termist investors who are negative on the bond market will miss great opportunities.
It is their view that policymakers will refrain from raising interest rates for some years so that the economy will recover and older investors and institutions seeking income will support the bond market in the long term. Bob Devin, the Portfolio Manage said, "Research indicates there is a lot of spare capacity in the economy and GDP growth could continue to rise significantly before capacity constraints appear and rates have to rise to cap inflationary pressures. One MPC member was recently quoted in the FT commenting that the Bank of England could do more bond purchases if they felt the economy was still too sluggish.
"In the longer term, there will always be investors providing support to the bond market. For example, Life companies need to offset liabilities with long duration gilts, corporate treasuries look to enhance income on reserves on a one-year view and there are charities that require cash management at the short end of the curve. The population is getting older too and senior citizens look to bonds to provide steady income in retirement.
"Sturgeon believes that some market players have acted irresponsibly by pushing yields and creating volatility. Mark Carney's policy of forward guidance was a genuine attempt to give industry and long-term investors the confidence to invest for longer term economic growth and jobs. The actions of short-term speculators has been unhelpful and ultimately, self-defeating too."
The new Treasury and Fixed Income Portfolio Management Service for charities will use a transparent and ethical investment process which will offer customised fixed income solutions and manage funds on both discretionary and advisory's basis. Solutions will be tailed to meet client-specific objectives and to deliver real income above inflation, using a combination of short duration UK and international bonds, hedged for currency risk. A minimum investment in £250,000 which will make it available for a range of small to mid-sized charities, as well as inter-faith, school and college foundations.
The service will be offered directly to charities via financial intermediaries such as IFAS. There is no initial charge for the service and the annual management fee starts at 0.75% on the first £1 million. The fee covers wage and administration costs only.
Sturgeon will not receive any initial commission from any third party fund managers, opting for monies to be reinvested on clients' behalf. An introductory fee is negotiable with intermediaries. A fee of 0.5% per annum is charged to cover custody/settlement and dealing costs.
Image source: http://www.sxc.hu/photo/342379
Related articles
- 20 Apr
CHARITY WORKS TOWARDS A NATIONAL PLAN TO END HOMELESSNESS
Prime minister, Theresa May and the first ministers of Scotland and Wales congratulated "Crisis" on its anniversary and gave an assurance to work hand in hand with them while on a quest to eradicate...
- 30 Jan
THE FATE OF EU-FUNDED PROJECTS AND ITS EFFECT ON CHARITY SERVICES
In March 2016, forecasts of growth were low and the government's own estimates put the Treasury's coffers £122bn poorer by 2020.The supreme court has also determined that MPs must approve the...
- 15 Jun
INCREASE IN THREATS OF EVICTIONS FROM HOMES
After analysing statistics from the Ministry of Justice, the housing charity (Shelter) found the following:In the past year, the number of people seeking advice from 'Shelter' on their eviction...
- 07 Jun
CHARITIES, THEIR BRANDS, BENEFICIARIES AND HOW TO EFFECT CHANGE
"Most charities exist because their founders believed the future could be different if they mobilised supporters", but Mandy Johnson of the Guardian believes"This vision is being lost."Charities are...
- 17 Apr
Support for veterans to return to work
Places for People hopes to support veterans into the workplace and also benefit from the skills and experience they have to offer, reports 24dash.All veterans applying for jobs in Places for People's...
- 26 Jan
Charity registers as social landlord
It has now registered its housing department as a housing association, Inside Housing reports.The charity set up Golden Lane Housing (GLH) in 1998, which has now registered to be a social landlord...
- 14 Jan
Charity to develop app for people with disabilities
The funding will enable the charity to develop and test the free app, called FlyCatcher, which could be on the market by 2016.The app uses iBeacon technology to send information through smartphones...
- 14 Jan
Young people’s health harmed by fuel poverty
The Department of Energy and Climate Change have reported that 10% of households in England were in fuel poverty.The charity, Turn2us have stated that 75% of the 2,060 adults in the PRS who were...
- 08 Jan
Homelessness in Scotland
Shelter Scotland stated that this percentage is ‘disproportionate' to the sector's size which makes up 13% of all housing in Scotland, Inside Housing reports. It was also mentioned that the number...
- 07 Jan
Homelessness an ‘increasing trend’ in Wales
Cais blames the lack of options available to individuals due to the change in the type of support that can be offered.The Chief Executive of Cais, Clive Wolfendale has described the problem of...
Responding to the DWP Consultation: Housing Benefit Reform - Supported Housing "Found the seminar very informative and gave an interesting and full insight into current thinking about the consultation. Michael was a very engaging and knowledgeable presenter and encouraged interaction with the audience which led to further relevant points being shared with the room. I shall certinaly look out for future events!" M.E. - Care Housing Association
