Charity Investment

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.

10/07/2018

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.

Lower costs

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.barker@cazenovecapital.com

Author

The opinions contained herein are those of the author and do not necessarily represent the house view. This document is intended to be for information purposes only. The material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The material is not intended to provide, and should not be relied on for, accounting, legal or tax advice, or investment recommendations. Information herein is believed to be reliable but Cazenove Capital does not warrant its completeness or accuracy. No responsibility can be accepted for errors of fact or opinion. This does not exclude or restrict any duty or liability that Cazenove Capital has to its customers under the Financial Services and Markets Act 2000 (as amended from time to time) or any other regulatory system. Cazenove Capital is part of the Schroder Group and a trading name of Schroder & Co. Limited 12 Moorgate, London, EC2R 6DA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For your security, communications may be taped and monitored. 

Contact Cazenove Charities

Achieving your charity's investment objectives takes time and thought. To find out how we can help you please contact:

Giles Neville

Giles Neville

Head of Charities giles.neville@cazenovecapital.com
John Clifton

John Clifton

Business Development Manager john.clifton@cazenovecapital.com