Charity Authorised Investment Funds have received unanimous approval
We are delighted to be able to announce that we received unanimous approval from holders of our Common Investment Funds (CIFs) to switch them into the new Charity Authorised Investment Funds (CAIFs) in June.
We are delighted to be able to announce that we received unanimous approval from holders of our Common Investment Funds (The Charity Multi-Asset Fund, our comprehensive multi-asset approach, our two UK Equity funds, the Charity Equity Value and Equity Income Trust for Charities and our fixed income fund, the Income Trust for Charities) to switch them into the new Charity Authorised Investment Funds (CAIFs) in June. The CAIF structure has two main benefits for investors; stronger financial regulation and lower costs.
Stronger financial regulation
Common Investment Funds are not regulated by the FCA, so the new CAIF structure was introduced to strengthen the financial regulation of charity funds whilst retaining their charitable status. CAIFs are regulated by both the FCA and the Charity Commission.
The transition to an authorised fund means that the fund’s investment management fees will become VAT exempt, saving holders the additional 20% charge on the underlying fund fees. In addition, we took this opportunity to reduce the fund fee for the Charity Multi-Asset Fund from 0.40% p.a. to 0.375% p.a.
All the Funds continue to be managed by the same teams and managers, following the same investment processes.
Holders will have likely already seen the transaction in valuations. We minimised disruption by retaining the prices and number of units, although the funds are now quoted on a single priced basis, rather than dual. It is worth noting that the Funds have aligned their dealing times, distribution dates and year ends. All of the funds now deal at midday and have 30 September year ends. In addition, the quarterly distributions will now be at the end of February, May, August and November.
If you would like any more information on the changes or to discuss any of the Funds in more detail, then please do not hesitate to be in touch with me: Jeremy.firstname.lastname@example.org
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