A need to diversify investments is a requirement for charity trustees to act within the law, as stated in the Charity Commission's Guide for trustees on investment matters (CC14). Diversification is a risk management strategy that mixes a wide variety of investments within a portfolio in an attempt at limiting exposure to any single asset or risk.
Investment managers diversify investments in their managed portfolios and funds. However, we believe that charity trustees and finance directors need to be aware of certain factors as they discuss investment strategies and appoint and monitor investment managers.
A full article with our five top tips on diversifying your charity investment portfolio can be found on our website at https://www.pmclconsulting.com/post/diversifying-your-charity-investment-portfolio.