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Barnett Waddingham
Article read time:
1 minutes
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Matthew Gold, Principal and Head of Charity & Endowment Investment at Barnett Waddingham, talks about why choosing the right investment managers is one of the most important decisions for any charity or endowment — and how a disciplined, informed approach can make a significant difference to long-term outcomes.
Choosing the right investment managers can be the difference between growth and stagnation. While strategic asset allocation drives long-term returns, the impact of manager choice is far from trivial. A £1m investment in diversified growth could yield a £650,000 difference over three years depending on the manager selected. That’s not just performance — it’s potential realised or lost.
So, what makes a manager the right fit? It’s not just about past returns. A transparent, repeatable investment process, a stable and capable team, and a clear understanding of how risk is managed are all essential. Sustainability and stewardship also play a growing role in the evaluation. Meeting decision-makers in their own environment can reveal more than numbers ever could.
It’s about understanding the dynamic, the decision-making, and the integrity behind the strategy. Historical performance matters, but only when viewed through the lens of how it was achieved and whether it can be repeated. Fees shouldn’t overshadow quality or suitability but remain an important consideration. As markets evolve, so too must portfolios.
Recognising when a manager no longer aligns with your goals is key. Whether it’s underperformance, organisational change, or shifting objectives, knowing when to pivot is part of the journey. The approach is simple: never invest in what you don’t understand and always seek clarity before commitment. With the right approach, investors can make confident, informed decisions that support long-term success.
Appointing an independent and FCA regulated investment advisor such as Barnett Waddingham can facilitate navigating these considerations and empower investors to establish investment and sustainability objectives, find great managers to meet them, negotiate competitive fees, and monitor and maintain strategies.
If you’re looking for expert support selecting the right manager for your charity or endowment’s investment portfolio, please visit our website at Charity Investment, Foundations and Endowments.