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Trustees Responsibility to Review Investments

We also assist Trustees with the discharge of their duty to regularly review Trust investments. This area has traditionally been difficult to discharge successfully when discretionary fund mangers are appointed as there is limited independent analysis and advice that the Trustees can rely on.

Trustees are often at risk when using discretionary fund managers if they allow the Investment Manager to define the Trust’s benchmarks and risk parameters. If these do not match the governing documents of the Trust or not actively reviewed, Trustees will remain exposed.

Independent analysis of discretionary managers has always been difficult to provide although new techniques offer the opportunity for regular monitoring of portfolios risk and performance. Fund managers are using ever more complex instruments and Trustees need to keep on top of the potential risks building up in portfolios and ensure these are within the parameters set.

Our process allows Trustees to independently verify that the investment portfolio's matches the Investment Principles by:

  • Taking regular data from the Investment Manager
  • Analysing the amount of risk taken in the portfolio in order to generate returns and where this conflicts with the Trust documents
  • Allocating relevant performance benchmarks to test returns ensuring they remain relevant
  • Looking at peer performance to identify any performance issues

Call us today to discuss your individual requirements on 0845 828 1000 or email one of the M&H Financial Planning team.

Contact our Financial Planning Team