08009993348 david@cadoganwilson.co.uk

Trustee investment service

For those trustees who require to delegate the management of trust investments in order to fulfill their statutory duty of care under the provisions of the Trustee Act 2000 we provide a compliant consultative and advisory service which adheres strictly to the requirements of the Act.

We will help and assist, where appropriate, with the preparation of an Investment Policy Statement that will reflect:

  • the goals and objectives of the trust,
  • the needs of the different classes of beneficiary,
  • the risk tolerance of the trustees and beneficiaries,
  • the timescales,
  • the suitability and appropriateness of the investments,
  • the required returns of the investments,
  • the overall risk profile of the portfolio.

This document, once agreed, will form the basis for the portfolio modelling.

Investment Strategy 

In constructing a diversified portfolio (a key requirement under the Act) we will apply the principles of modern portfolio theory to maximize the return for a given standard deviation (risk), whilst minimizing costs. We will select from a range of institutional grade index funds only available through a small number of authorised advisers and using sophisticated asset allocation techniques blend them into an optimal portfolio. Adopting a passive approach, such as this, is particularly appropriate for Trustees because it ensures they avoid the uncompensated risk associated with active fund management and thereby avoid the potential difficulty of explaining poor performance to beneficiaries.

Click here for a detailed description of our investment approach.  

Other Key Considerations

Due attention will be paid both to the tax position of the beneficiaries in the choice of investment vehicle for the trust assets and to the reporting requirements of the trustees.

Review Process

We will communicate with Trustees on a regular basis to review the Investment Policy Statement, to report on performance of the portfolio and to discuss and undertake rebalancing the portfolio, if necessary. Outside regular reviews we will be available to Trustees to discuss any other issues concerning the management of trust assets.

Our Remuneration

For preparing the Investment Policy Statement and constructing an appropriate investment portfolio there is an implementation fee. There is also an investment management fee for providing ongoing professional advice and support and for conducting the review process at pre-specified intervals. This fee is calculated as a small percentage of funds under management.