what does dexterity offer charities?

New charity trustees discover early that their first duty is to act in the best interest of all the beneficiaries. Like ‘treating customers fairly’, ‘best interest’ is a principle difficult to define: but its absence stands out.

Of many factors for trustees to consider: charges, income, loss-tolerance, risk-disposition, ethics and liquidity spring to mind. In my experience, Exchange Traded Funds have great merit because everything about them is explicit.

In portfolios run by stock brokers and wealth managers – for charities and trusts – I often see ETF; mostly S&P 500 and FTSE 100. Do all managers pass on the benefits of lower cost, I wonder?

If you’re the trustee of a portfolio intent to thrive far into the future, I bid two attributes of ETF are very relevant:

  1. low cost: a 1% saving on charges each year compounds into a valuable sum of money,
  2. world-index funds costing less than 0.1% make excellent buy-and-hold foundation funds.

For trustees engaged in managing the long-term financial health of a trust, I offer training. I invite you to window-shop my service.