While many charities will find that one or other of the Alpha Common Investment Funds suits their particular requirements, many will find that they need to combine holdings in both the Endowments Fund and the Income & Reserves Fund to achieve an income stream and risk profile that matches their specific objectives.

After entering into an investment advisory agreement with Sarasin & Partners, prospective unit holders will have the opportunity to discuss their requirements with Sarasin & Partners, the investment managers of both funds, and agree a split between the two Funds that matches their particular circumstances.

Devising the mix between the two funds that meets each charity’s strategic investment objective and agreeing the correct overall asset allocation is all part of the Alpha service.

In discussion with a member of Sarasin & Partners’s charity team, and after gaining an understanding of your charity’s circumstances, a precise mix between the two funds can be agreed.

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The opportunity for unit holders to create a “tailored” investment portfolio, driven by each charity’s own risk or income objectives, and receive reports that have the look and feel of those received by the largest segregated portfolios is the result of much internal IT research and development.

For larger charities used to a bespoke, segregated approach, the ability to maintain their asset allocation and retain high levels of personal service, while benefiting from a more diversified portfolio and lower levels of administration, is expected to be particularly appealing.

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Examples of possible mixes between the Endowments fund and the Income & Reserves Fund are shown in the table above. The top line of the table shows the mix between each of the two funds, and the table then shows the underlying asset allocation that would result.

The last two lines show the estimated yield and annual income that each mixture would produce.