UK - Charities are being urged to review their pension schemes' investment strategies in the wake of stock market falls.
Close Wealth Management says charities are being hit by a “double whammy” of reduced donations and depressed stock markets, which means they must be extremely careful how they invest their pension fund assets.
Chief executive Martin Smith said: “Charities are coming under huge pressure.
“Their overhead costs are rising dramatically with insurance premiums, for example, increasing by as much as 300%.”
CWM suggests that charities should focus on what they want to achieve from their investments and over what time period. It said they should reduce risk by ensuring investments are adequately diversified, adhere to any charity-specific ethical or legal requirements and regular reviews.
CWM’s research shows that charities’ total assets have fallen by up to £6.8bn since January 2002.
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Royal Bank of Scotland (RBS) faces a £102m impact on liabilities as a result of equalising guaranteed minimum pensions (GMPs), according to its annual results.
Malcolm Mclean says getting the channels of communication right and engaging more openly is a good starting point