On the go: UK charities spent £686m on investment management fees and advice during 2020, according to analysis from Tribe Impact Capital.
The analysis, conducted by the impact wealth manager in September, was based on the filings of the 169,000 charities that filed their accounts via the UK's Charity Commission, and focused on those with investment assets over £1m.
On average, these charities pay fees that represent 0.7 per cent of the value of their investments.
Tribe stated that there are some big differences and economies of scale within this average, as charities that have £1m to invest are paying 1.11 per cent, which is around twice as much as those with £20m in assets, and nearly three times as much as those with £100m.
Value of investment assets | £1m-£3m | £3m-£5m | £5m-£10m | £10m-£20m | £20m-£50m | £50m-£100m | £100m+ |
Fees paid | 1.11% | 0.93% | 0.62% | 0.63% | 0.60% | 0.62% | 0.44% |
Considering the amounts being spent in these fees, Tribe called upon charities to assess whether they are investing in line with their charitable purpose, “as many will hold legacy assets that do not meet the public’s expectations of responsibility and sustainability or the trustees’ long-term need for reliable returns”, it stated.
