City Hive launches ACT Toolkit to improve charities’ oversight of asset managers

Thinktank and advocacy group City Hive has launched a new toolkit aimed at helping charity trustees assess whether the culture and conduct of their asset managers aligns with their charity’s purpose, values and responsibilities.

The ACT Toolkit for Charity Trustees is designed to give trustees a structured way to incorporate asset manager culture into manager selection, ongoing monitoring and investment governance.

Based on the ACT Framework, a corporate culture standard developed specifically for the investment industry, the Toolkit aims to give trustees a practical way to evaluate whether an asset manager’s internal culture is a good fit.

It provides clear questions, consistent disclosures and a repeatable process through which they can identify potential cultural, governance and reputational risks, and can be used directly by trustee boards or incorporated into the due diligence processes undertaken by their investment consultants.

“Charity trustees are responsible not only for where their charity’s money is invested, but for ensuring those investments continue to support its purpose, values and long-term interests,” said Bev Shah (pictured), co-CEO of City Hive.

“Financial performance is clearly central to manager oversight, but it does not provide a complete picture. The culture of an asset management firm shapes how decisions are made, how risks are challenged, how people are supported and how openly the firm responds when problems arise.”

It comes as charity boards face growing expectations around governance, stewardship and investment oversight. For example, the Charity Governance Code was revised last year to set out eight core principles for charity boards, putting more emphasis on board behaviours and culture.

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