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Co-Investment Committee - Management
BACKGROUND
During 2011, the Chairs and CEO’s of Wiltshire, Devon and Somerset Community Foundations agreed that the three
Foundations would explore ways of working together to reduce costs and improve efficiencies. Investing the
endowments together under a single investment policy was identified as as way to save fund managers fees by
having increased scale and sharing expertise to improve governance. Together they set up a co- investment
committee with a co-investment policy and placed their three endowment funds – still retaining their individual
identities, with the same investment managers to benefit from the scale they have together. The separate funds are
co-invested i.e. they do not lose the identity of the investment portfolios but they are pro rata identically invested.
A co-investment committee was formed. The co-investment committee is accountable to each of the Foundation’s
Boards. The committee consists of up to two voting trustees from each participating foundation with the CEOs as
optional observers.
In 2011 two Fund Managers, Smith and Williamson and Ruffer LLP were appointed, who will, in line with an agreed
joint investment strategy, use their best endeavours to manage the investments of the participating Community
Foundations. Each Foundation also has funds with CCLA as part of Communities First.
In 2016 Dorset Community Foundation joined the co-investment committee.
THE AIMS OF CO-INVESTMENTThe co-investment of funds is to support the furtherance of the Foundations’ objects and is critical to their
beneficiaries, donors and the core costs of each Foundation. By co-investing the participating Foundations aim to
improve performance, reduce investment management fees and access a wider pool of expertise from the
participating Foundations Trustee Boards.
The purpose of the co-investment committee is to review and make recommendations on investment strategy,
manage the relationship with Fund Managers, monitor the performance of the portfolios, and agree
recommendations for change to the Trustees of the participating Foundations.
MANAGEMENT OF MEETINGS
Participating Foundations will attend the co-investment committee comprising of two representatives from each
Foundation with relevant investment experience, at least one of whom must be a Trustee. Chief Executives are
standing members of the committee without voting rights.
Meetings are held quarterly at Smith and Williamson’s office, Portwall Place, Bristol. Fund Managers will be invited
to present at three of the four meetings of the year with the December meeting being used to review policy and
strategy.
The Chair of the committee is appointed for one year with the chair rotating through the members of the
committee. The chair for 2016/2017 is Wiltshire, the chairing foundation also provides the secretariate for the
meeting.
Minutes of the meetings are prepared by the secretariat and sent to each participating foundation.
PRACTICE
Each participating Foundation’s executive manages the daily interface between the Fund Managers, the Foundation
and the fundholders.
Each foundation holds funds with CCLA as directed by Communities First. For additions to the endowment not
being put with CCLA, it has been agreed that each foundation would aim to maintain a 75% with Smith and
Williamson, 25% with Ruffer LLP, split of funds.
The co-investment committee is a decision making body only to the extent of making agreed recommendations to
the Trustees of the participating Foundations. The Foundations are expected to delegate investment decisions to
their investment trustees sitting on the co-investment committee who will enable this fast track process. However it
will be incumbent on each participating Foundation to establish their own “fast-track” decision making process to
deal effectively with anything which requires urgent action (eg if the fund manager advises a major change in asset
allocation to respond to a sudden and significant change in market conditions).
It is recognised that occasionally a donor requires his/her fund to be invested through a particular Fund Manager.
While of course this has to be accepted, participating Foundations will use their best endeavours to keep such a
situation to a minimum.
Each participating Foundation will recommend an annual distribution from their own income in arrears from their
funds after the end-of-March valuation. This will enable individual Foundations to plan their level of grant-making
for the year and determine their budget for core costs, whilst maintaining the value of the Endowment Fund over
the long term.
JOINING THE CO-INVESTMENT COMMITTEEThe co-investment committee welcomes new foundations to its group. In order to be considered, the Foundation
must agree to the investment policy, agree to using the fund managers in post based on the 75%, 25% spilt and have
trustees prepared to attend quarterly meetings with the committee.
WITHDRAWALParticipating Foundations may withdraw from these arrangements at any time. Withdrawing from this arrangement
should only be done as a last resort as the co-investment approach relies on the value of the total invested funds to
achieve the levels of discount we have. Withdrawing will impact on the other members of the committee and may
incease the levels of fees for remaining parties.
We will retain a Force Majeure capability and each foundation will be able to make the decision to leave should
economic or other circumstances make this appropriate.
Approved by:
Peter Wyman – Chairman Somerset CF, Sir Michael Ferguson Davie Bt – Trustee Somerset CF, John Glasby – Trustee Devon CF, John Woodget –
Trustee, Wiltshire CF, Rosemary Macdonald – CEO Wiltshire CF
18 Oct 2011
Sally Walden – Trustee, Wiltshire CF, Jason Dalley – Trustee, Wiltshire CF, Jane Barrie – Chairman, Somerset CF, Barry O’Leary – Trustee, Somerset
CF, Peter Holden – Trustee, Devon CF, Nick Fernyhough – Trustee, Dorset CF.