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Article last updated 7 May 2026.
Choosing and overseeing an investment manager is one of the most important responsibilities trustees hold.
But knowing what to ask and how to interpret the answers can be challenging, particularly for those without a financial background.
These five questions provide a strong starting point.
1. How does this strategy support our charity’s objectives?
Every charity is different. Your investment manager should clearly explain how the portfolio aligns with:
- Your income and growth requirements
- Your time horizon
- Your risk tolerance
If the strategy feels generic, it probably is.
2. What level of risk are we taking - and why?
Risk isn’t something to avoid - it’s something to understand. Ask:
- How is risk defined and measured?
- What could go wrong?
- How would the portfolio behave in a downturn?
Clear answers build trustee confidence.
3. How are responsible or ethical investment considerations integrated?
Responsible investment is increasingly important for charities - but approaches vary. Your manager should be able to explain:
- How Environmental, Social and Governance (ESG) factors are considered
- Whether ethical exclusions are applied (and if so, which ones)
- How stewardship and engagement are used
And crucially - how this impacts outcomes.
4. How will investment performance be reported and explained?
Performance is about more than numbers. You should expect:
- Clear, regular reporting
- Context around market conditions
- Transparency on decisions made
Good reporting enables better governance.
5. What role do we play as trustees?
An effective relationship is a partnership. Clarify:
- What decisions trustees are responsible for
- When input is needed
- How often the strategy should be reviewed
This avoids both overreach and under-engagement.
In summary
The best questions are often simple - but powerful.
By focusing on clarity, alignment and accountability, trustees can build a more effective relationship with their investment manager, and ultimately make better decisions for their charity.
By focusing on clarity, alignment and accountability, trustees can build a more effective relationship with their investment manager, and ultimately make better decisions for their charity.
