Aberdeen Charity Solutions - Aberdeen Asset Management

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Aberdeen Charity Solutions - Aberdeen Asset Management

Aberdeen Charity Solutions

Equities | Fixed Income | Property


Contents

1 Introduction

2 About Aberdeen: Our Investment Credentials

3 Creating Charity Investment Solutions

4 First Class Service and Reporting

5 Charity-Specific Common Investment Funds

6 Our Investment Process

7 Specialist Investments

8 A Dedicated Team

9 Contact Us

Aberdeen offers a compelling proposition to help address the specialist needs of charities:

• Innovative charity solutions from a renowned international investment management group

• A dedicated and experienced charity team offering strategic advice on benchmarking and asset allocation

• A choice of bespoke solutions or charity-specific Common Investment Funds

• Strong performance and a strong commitment to client servicing

2


Introduction

At Aberdeen, we are totally committed to the charity sector. Our charity

business is fully integrated in the institutional investment process. Asset

management is our only business – we are totally focused on performance

and client service.

Our aim is to provide charities, foundations and trusts with excellence in

fund management, combined with a high level of personal service from

experienced charity professionals, all at a reasonable cost.

From our segregated portfolios to our range of Common Investment Funds,

we offer flexible investment solutions combined with expert strategic advice

on benchmarking and asset allocation.

With our wealth of experience and close working relationships with our

charity clients, we aim to be the partner of choice for the charity sector.

We very much welcome the opportunity to help charities and their

professional advisers. We would be delighted to discuss your individual

requirements.

Roger Curtis

Head of Charities

Telephone: 020 7463 6158

Email: roger.curtis@aberdeen-asset.com

3


About Aberdeen: Our Investment Credentials

We are dedicated to asset management

At Aberdeen, asset management is our skill set. Whereas

many other asset managers are part of investment banking

or life assurance groups, we have the freedom to focus on

managing assets for third parties.

We know global markets from the local level upwards,

drawing on 1,900 staff across 24 offices in 19 countries.

We believe our focus, size and approach enable us to provide

effective asset management and superior client service. As

a group, we have the scale to provide global coverage of

financial markets; yet we are small enough to focus on

each and every portfolio decision.

Close-knit teams, clear investment processes and flat

structures are important to us. We seek to grow our clients’

assets in a way that is sustainable over the longer term.

4


Creating Charity Investment Solutions

We provide an individual service that is committed

to matching the specialist needs of charities with an

appropriate investment solution.

Each of our charity clients is allocated a specific team,

headed by a client director who works with our charity

clients and their advisors to establish their investment

requirements. We use our investment expertise, in

conjunction with our knowledge of the charity sector and its

legislation, to create an appropriate investment solution. We

ensure that realistic criteria are agreed for performance and

client servicing.

Fund solutions

We have created a range of Common Investment Funds

which provide an effective way for charities of any size to

access well-diversified investment vehicles covering three

core asset classes at low cost. More details on these can be

found on page 7.

In addition to our charity-specific funds we offer a wide

range of funds to UK domiciled charities, covering a variety

of different markets and sectors.

Bespoke Portfolios

We understand that larger charity clients can have complex

investment requirements which are best met through a

tailored, segregated portfolio solution.

The Charity Team take time to analyse and understand

specific requirements, so that asset allocation (and in some

cases stock selection) is established on a bespoke basis, in

line with each client’s particular requirements and guidelines.

All critical aspects are considered such as investment

objectives, ethical and legal constraints, time horizons and

attitude to risk.

Across the globe, we have highly regarded investment

teams in the equities, fixed income and property arenas.

Consistency in approach is ensured by our robust and

effective investment processes. We can overlay these

processes with strategies that are appropriate to each of our

charity clients, such as SRI (Socially Responsible Investing).

For smaller charities, who would prefer a segregated

investment solution, we offer the expertise of the Aberdeen

Private Wealth Management Team. Based in Jersey, the

Private Wealth Management Team’s sole focus is to offer

tailored investment solutions. Their commitment to

delivering strong investment performance, combined with

a high quality bespoke service, are highly attractive for our

charity clients.

5


First Class Service and Reporting

No matter what the size of a charity’s portfolio, we regard

servicing our charity clients as paramount. Reporting to

trustees will be regular, and at a frequency to meet each

specific client’s requirements. Our approach is transparent

and we encourage open dialogue and communication.

Our charities website (www.aberdeen-asset.com/charities)

is designed as a valuable source of information for our clients

and their advisers, offering pricing, market commentary,

fund manager views and latest performance.

In addition, we run a programme of UK Trustee

Education. This programme runs at various levels from

introductory to specialist, catering for trustees who

wish to expand their knowledge of investments. Please

contact us for more information or visit our website:

www.aberdeen-asset.com/charities

6


Charity-Specific Common Investment Funds

Designed specifically for charities, we offer three Common

Investment Funds (CIFs). Our CIFs are pooled funds which

are regulated by the Charities Commission. The funds

provide an effective way for charities of any size to access

well-diversified investment vehicles covering three core

asset classes at low cost.

Our CIFs are attractive to every size of charity, but are a

particularly good way for smaller and mid-sized charities to

create a balanced portfolio.

Features of the three CIFs include:

• Low fee structure

• No initial charges

• No exit charges

• Low minimum investment (£1000)

• Quarterly income distribution (UK funds only)

• Daily pricing

In the case of the Charity Select UK Equity Fund, the fact

that it is a registered charity means no stamp duty is paid on

the purchase of UK equities within the fund, thus enhancing

the potential returns for investing charities.

Charity Select UK Equity Fund

The objective of the Fund is to provide capital growth

through investment in companies that are either quoted on

one of the main UK stock exchanges, are registered in the

United Kingdom, or have a significant proportion of their

assets there.

Charity Select UK Bond Fund

The Fund aims to maximise total returns by investing the

majority of the Fund’s assets in investment grade UK debt

and Debt-Related Securities. The Fund may also invest up to

20% in sub-investment grade debt. The Investment Manager

may invest directly or via Collective Investment Schemes to

achieve the desired asset allocation.

Charity Select Global (ex UK) Equity Fund

The investment objective of the Fund is to provide long-term

total return from an internationally diversified portfolio of

equities, but not including UK equities.

Further information on our three CIFs is contained within the

Scheme Particulars and Application Forms.

Charity Select UK Property Fund

Aberdeen are in the process of developing a property fund

that will invest in both UK and Europe. Launch of this fund is

expected in early 2009.

CIF Advisory Board

The CIFs have an Advisory Board who act as the independent

trustees of the funds. Our advisory board is comprised of

six outstanding independent professionals, whose expertise

in the charity and finance sector provides an invaluable

resource. Information on the current members of the

advisory board can be found on our charities website:

www.aberdeen-asset.com/charities

7


Our Investment Process

Equities

Aberdeen’s mainstream equity process dates from the early

1990s, and we believe its advantage lies in the consistency

of its approach, irrespective of market conditions. We aim

to add value by identifying good quality securities, defined

chiefly in terms of management and business model, and

which are attractively priced. Our mainstream equity

managers always visit companies before investing, making

thousands of trips annually to existing and prospective

holdings. We downplay benchmarks in portfolio construction

since these provide little clue to future performance.

We employ over 110 equity investment professionals, based

globally. Portfolio decisions are made collectively, and we

avoid cultivating ‘star’ fund managers. Cross-coverage of

securities also increases objectivity and lessens reliance on

individuals.

Diversification at the stock level is our main control of risk.

We aim to add value by capitalising on original research.

We see equity risk in terms of investing in a poor quality

company, or overpaying for a good one.

Property

We offer a wide range of well-structured property

investment vehicles that provide strong risk-adjusted returns

and a choice of geographic and sector allocation. In addition

to funds holding direct property, Aberdeen has pioneered

the development of funds of property funds, with exposure

to Continental Europe and Asia. Active management, topclass

research, local presence and a rigorous investment

process are the means by which we add value to property

investment.

Fixed Income

With the acquisition of Deutsche Asset Management in

2005, Aberdeen inherited a tested fixed income process that

dates back to the 1980s. Its core characteristics are a focus

on proprietary research, and identifying opportunities with

attractive risk-reward characteristics. Our discrete alpha

teams cover five areas of expertise, each of which operates

independently of the other. These specialties are: investment

grade credit, high yield, emerging market debt, interest rates

and currency.

We employ over 100 investment professionals across

our teams. We aim to add value by exploiting market

inefficiencies and we have dedicated portfolio managers

and analysts in the three main time zones. They operate as

close-knit teams, with investment decision-making devolved

to specialists, based on their knowledge and expertise.

We also use derivatives, such as interest rate and credit

default swaps, to add value and also to match liability

exposures. We have had a robust platform for trading OTC

derivatives since 2001.

When employing a variety of different investment strategies,

our experienced central teams co-ordinate the risks, setting

risk budgets and allocating risk to the various strategies. We

therefore ensure that we meet our client’s risk requirements

whilst delivering performance across the full range of our

fixed income capabilities.

8


Specialist Investment Opportunities

Socially Responsible Investing

At Aberdeen, we recognise that many clients – in

particular charities and family foundations – appreciate the

importance of Socially Responsible Investing (SRI) and want

their portfolios to have an ethical bias.

We have a specialist SRI team with a long-standing

reputation as experts in this field. Our SRI investments aim

to achieve long-term capital appreciation whilst taking into

account social, ethical and environmental criteria.

In the UK we offer two ethical funds: Aberdeen Ethical

Engagement UK Fund and Aberdeen Ethical World Fund.

For larger charities we can offer tailored portfolios to meet

specific clients’ needs, screening for a bespoke range of

ethical restrictions.

Alternative asset classes

Charities wanting to increase the diversity of their

investments may wish to include a variety of asset classes

within their portfolio. Aberdeen is a skilled multi-asset

manager. In addition to the core asset classes of equities

and fixed income, we are experts in the creation of

portfolios comprising alternative asset classes such as

property, private equity, infrastructure, commodities, hedge

funds and currency.

The principle attraction of multi-asset investing is that it

offers true portfolio diversification. In many cases the asset

classes are not correlated to each other, meaning that they

move in different directions at different times in the market

cycle. This lack of correlation lessens volatility within a

multi-asset portfolio, providing the potential for superior

risk-adjusted returns.

For larger charities we can create bespoke multi-asset

portfolios, but charities of any size can access our multiasset

expertise through our pooled funds, such as the

Aberdeen Multi-Asset Fund.

9


A Dedicated Team

We recognise that successful client relationships are about

more than investment performance. Whilst providing good

returns will always be our focus, we also commit significant

resources to excelling in client service through our dedicated

team approach. We also maintain contact with Central

Government and charity umbrella bodies in order to keep up

to date with any new legislation that might impact charities

throughout the UK.

A wealth of experience

Roger Curtis heads our charity client relationship team.

He takes a personal interest in each and every client

relationship. Roger has over 30 years’ experience in the

investment management industry. As an investment

director on the Aberdeen multi-asset team he is responsible

for investment strategies undertaken on behalf of clients.

This strategic insight, coupled with our understanding of

charities’ needs, ensures we offer our clients the most

appropriate investment solution.

Roger is supported by Victor Beamish, who is Chairman of

Charities. He focusses his expertise on providing our clients

with the personal service they require and deserve.

Aberdeen’s Chief Investment Officer, Anne Richards, and

Head of Global Strategy, Mike Turner, determine the

strategies employed by our investment professionals in

creating segregated portfolios. Our Common Investment

Funds draw on the specialist expertise of our equity and

fixed income teams.

Underpinning our high levels of service are the charities’

client service team who ensure that our clients’

administration and reporting requirements run smoothly.

These individuals have worked with charities for many years

and bring a great deal of expertise to our offering.

10


Contact Us

Roger Curtis

Head of Charities

Tel: 020 7463 6158

Email: roger.curtis@aberdeen-asset.com

Victor Beamish

Charities Chairman

Tel: 01224 425 225

Email: victor.beamish@aberdeen-asset.com

Visit Us Online

Our dedicated charities website also provides a

comprehensive source of information. Please take a moment

to visit us at www.aberdeen-asset.com/charities or email our

charities team at charities@aberdeen-asset.com

Email Services

To receive information on our charity range, please register

for our email services at: www.aberdeen-asset.com/

charitycif

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