Charities & Foundations
A tailored investment strategy to help your organisation maximise returns, whilst minimising risk, so you can do more for your cause.
As economic pressures rise and the costs for Australian households increase, charities and foundations face financial challenges to attract donors and raise critical funds to support their mission.
That’s why it remains crucial for charities to implement a robust investment policy and asset allocation framework that readily provides access to cash for short-term program needs, whilst building income and capital over time to support long-term sustainability.
From aged care to research institutions - for more than 40 years Ords has proudly supported the Not-for-profit sector in delivering on their respective missions. Start a conversation with us today to find out how we can support you in continuing to make a positive impact on the world.
At Ord Minnett, we pride ourselves on our ability to assist charities and not-for-profit organisations to maximise returns on financial assets whilst minimising risk, taking into account long-term strategic plans, short-term needs, ethical investing and cash flow requirements.
At the outset, our advisers gather sufficient detail to ensure we are fully informed regarding your organisation’s income requirements, liquidity, capital growth and risk tolerance. We also update your Investment Policy and Strategy prior to providing specific advice.
Once we ascertain all the relevant specific investment criteria, Ord Minnett will construct a tailored investment portfolio that seeks to achieve your goals and requirements.
Ord Minnett’s Head of Asset Allocation and Philanthropic Services, Malcolm Wood, oversees the holistic service offering that our advisers and investment specialists provide to our for-purpose clients. Ords has a wide range of financial expertise, including asset allocation, portfolio management, wholesale bond and fixed income specialists, which maximises the potential to earn strong returns for our for-purpose clients.
Once our team have determined your organisation’s needs, we then apply a diversification process across asset classes and within portfolios. The key to asset allocation is combining individual asset classes in the best proportions to obtain the optimal trade-off between risk and return. The goal is to combine assets with different risk and return profiles. If you diversify across similar investments, which all perform alike during similar economic and market conditions, then the benefits of diversification are reduced.
Ord Minnett has a clear philosophy on investing into businesses with strong balance sheets, which seeks to generate suitable financial returns without increasing the overall investment risk of the portfolio.
Our investment approach is “top-down” and “bottom-up”, overlayed with extensive knowledge of socially responsible investing (SRI).
Ord Minnett offers seven portfolios for charities and foundations, providing different asset allocation exposures depending upon your organisation’s short- to long-term goals and risk appetite.
The portfolio options include:
- Australian Core Equities Portfolio
- Australian Emerging Companies Portfolio
- Australian Listed Interest Rate Securities Portfolio
- Responsible Equities Portfolio
- International Equities Portfolio
- Multi-Asset Balanced Portfolio
- Multi-Asset High Growth Portfolio
Find out more about Ord Minnett’s investment portfolios
Socially Responsible Investing (SRI) provides an opportunity to invest ethically. It’s a strategy designed to invest in the long-term prosperity of Australian companies, and for those who wish to take into consideration a company’s environmental, governance and social impacts.
We actively assist our clients to invest in a socially conscious or “ethical” manner. Since 2015, Ord Minnett has been running a Responsible Equities Portfolio for clients to ensure portfolios favour socially responsible businesses. In addition, we actively advise clients with tailored portfolios to choose investments that encourage good corporate stewardship, consumer and environmental protection, diversity and human rights.
Our Responsible Equities Portfolio considers the following environmental, social and governance (ESG) factors.
- Environmental factors include carbon emissions, water use, waste production, environmental disclosure, forest degradation, biodiversity and wildlife impact, air pollution, spills or dumping, and lack of environmental certification.
- Social factors include human rights violations, alcohol and tobacco, human trafficking, indigenous people’s rights, labour practices, discriminatory employment practices, and the use of sweat shops in supply chains.
- Governance factors include corporate ownership and control, accounting, executive remuneration and board composition.
Interested in learning more about Ord Minnett’s Responsible Equities Portfolio and performance? Download our latest benchmarking study – Responsible Equities Portfolio 2022.
The combination of Ord Minnett’s philanthropic experience with charities and not-for-profit organisations, and our expertise in investment markets strategically positions us to provide expert advice on your investment strategy.
Our team will prioritise the following key areas to ensure strong and suitable investments are made for your organisation:
- Understanding the risk appetite of the organisation
- Quantifying your goals
- Ascertaining any specific needs, for example cash flow and/or long service leave provisions
- Providing ‘Board ready’ documentation on investment policy
- Structuring and delivering full and comprehensive portfolio management reporting necessary for compliance and audit purposes, to the appropriate staff member in a timely manner; and
- Providing reporting for presentation at Board level, as required.
Ord Minnett’s in-house team of investment specialists enable us to provide charities and not-for-profit organisations with a holistic and integrated service offering, leading to a more streamlined and cost-effective experience.
Key capabilities include:
Portfolio Administration & Reporting Service (PARS)
Our Portfolio Administration and Reporting Service (PARS) is a core portfolio management service that provides clear, accurate and timely investment portfolio administration, and via its administrative capabilities, allows your organisation and your Ords adviser to manage investments more effectively.
The key features of PARS include:
- Portfolio Reviews and Reporting: An Ords Adviser will review your organisation’s holdings, asset allocation and portfolio performance according to your agreed strategies and investment objectives. With 24-hour online access and a quarterly 'Report Pack', you and your adviser will always have access to the most comprehensive information on which to base your investment decisions.
- Online access: This includes 24-hour portfolio valuation access, live share prices and indices performance, company research reports and investment recommendations, in addition to private client publications.
- Quarterly and annual reporting: Your organisation will receive comprehensive quarterly and annual reports, which summarise the portfolio’s transactions and performance, in addition to providing summaries for tax purposes.
- Access to special offers: As a PARS client, your organisation will be able to access exclusive offers from our Corporate Finance, Fixed Interest and Funds Management teams, including pre-IPO capital offers, IPOs, structured investment products, and private equity and hedge funds. Your organisation will also have access to our financial planning expertise, if desired.
Wholesale Bond Service
The Ord Minnett Wholesale Bond desk can provide our for-purpose clients with direct access to the wholesale bond market, individually tailoring predictable income returns, while lowering the risk to investment capital. A diversified wholesale bond portfolio can provide a known return and enhance the security of your overall investment portfolio capital, diversity and cash flow.
Cash account and term deposit services
Ord Minnett also provides you with access to a wide range of approved deposit-taking financial institutions in Australia, with terms from one month to five years, all covered by the Australian Government Guarantee on deposits.
Our passion for the Not-for-profit sector runs beyond assisting charities and organisations directly. Ord Minnett employees operate and donate to a charitable fund, which hand picks organisations around Australia and the world to support all year round.
With an inhouse research team of over 50 experienced investment specialists and research analysts, Ord Minnett can provide charitable organisations with tailored investment solutions across funds management, asset allocation, equities, fixed interest and alternative investments.
Our experience with Not-for-profit clients has enabled us to build a network of reputable, professional service providers in the charity sector that we can connect you with, to help you enhance your organisation. Our partners include Philanthropy Australia, Australian Philanthropic Services, Huber Social and ShareGift Australia.
“What sets our Responsible Equities Portfolio apart is the dedication from our research team to ensure the companies we invest in achieve the environmental, social and governance (ESG) factors that we and our clients desire, while providing strong financial returns. We continually review our investments and seek to improve our ESG commitment wherever possible.”
Simon Kent-Jones, Head of Private Client Research
Helping you make a positive impact through tax-effective, charitable giving