Seven Factors to Consider When Choosing an Active Manager
Many charities appoint an active fund manager to look after their investment portfolio. Active managers research a wide range of shares, bonds and properties, and select those they expect to generate superior returns.
Risk and Volatility
There are many risks of investing, such as getting a lower return than expected, the market price falling below the original purchase price, and the value of the investment being volatile. Volatility is the extent to which the price of an investment fluctuates. Some investments are much more volatile than others.
Diversification and Asset Class Correlations
Diversification is an often touted and misunderstood investment principle. Diversification means splitting funds among a group of investments instead of concentrating funds in a single asset, single asset class, or highly correlated asset classes.
Key Features of Shares
Most investment portfolios of charities have an allocation to shares. A share represents a stake in a company. A typical share fund includes shares in a wide range of different companies.
How Unit Pricing Works
This article seeks to explain how unit pricing works, and how the use of unit pricing and registry systems provide equitable outcomes for all investors and/or account holders.
Most investment portfolios of charities have an allocation to bonds. Bonds are less risky than shares, but may still generate negative returns from time to time. A bond can be thought of like a loan...
Trust Management launches 101 Series
Trust Management provides services to a diverse range of charities. The services we offer cover a wide range of disciplines and the Trustees who serve on the Boards of our clients come from varied backgrounds, some with in-depth commercial knowledge in specific areas others committed volunteers who have had little exposure to the investment or business world.
It is with this diversity of knowledge in mind, that Trust Management is developing an educational series of papers, aimed at giving a basic oversight of key topics using simple terminology, in easy to understand language. These papers are not intended to be the definitive guide on their given topic, but seek to provide enough explanation that readers will be able to understand the overall concepts of each topic.