Can a charity switch between unit or share types?
A charity may switch between income and accumulation unit types within Charifund and/or between income and accumulation share types within Charibond. There is no charge for this as long as instructions are provided in writing and signed by two authorised signatories of the charity.
Charifund units and / or Charibond shares are sold and reinvested the same working day at the relevant single price. We levy no administrative charge for this transaction.
Can a charity take a gross income from its investment?
Holders of Charifund receive income in the form of a dividend, as Charifund is an equity-based fund.
There is no UK tax deducted prior to income distributions.
Holders of Charibond receive income in the form of interest distributions from which no income tax is deducted.
If you buy units in Charifund or shares in Charibond with an ex-distribution price, you will not be entitled to the next distribution of income made by the fund. You will, however, be entitled to distributions of income for future accounting periods.
Can a charity use existing shares or gilts to make an investment?
The M&G share exchange scheme offers charities an easy and cost effective way to turn shares or gilts into a tax-efficient charity investment.
The minimum value of shares that can be sold through the scheme is £1,000. Contact our Share Exchange Team on 0800 316 0650 for a brochure. Lines are open between 9am to 5pm, Monday to Friday. All calls are free within the UK. For security purposes, and to improve the quality of our service, we may record and randomly monitor telephone calls.
The simplest way to register a new holding for a charity is to register it in the name of the charity.
You need to provide a formal record of the names of the controllers (signatories) of your charity who are authorised to act on the charity’s behalf, along with their signatures. You should notify us of any change of controller, in writing, as soon as possible to ensure our records are kept up to date.
If you want to register your holding in any other way, we recommend you call our charities helpline on 0800 917 4472 to discuss this. Lines are open between 9am to 5pm, Monday to Friday. All calls are free within the UK. For security purposes, and to improve the quality of our service, we may record and randomly monitor telephone calls.
UK legislation set up to prevent money laundering obliges companies conducting investment business to be responsible for compliance with money-laundering regulations.
This means, in certain circumstances, investors may be asked to provide proof of identity when buying or selling units or shares. Normally this won’t result in any delay in carrying out your instructions. However, if we ask for additional information we may not carry out your instructions until we receive this. In these circumstances we may refuse to issue or redeem units or shares, release the proceeds of redemption or carry out such instructions.
How can a charity buy units or shares?
Units in Charifund and shares in Charibond can be bought every business day. You can buy units or shares (as appropriate) by making a written request or by ringing us between 8am and 6pm. Send us a cheque to accompany any written request and to follow any telephone purchase. All cheques should be made payable to ‘M&G Securities Limited’.
How can a charity invest?
A charity can invest with a lump sum or with regular investments by direct debit.
The first time you buy Charifund units or Charibond shares you will need to complete a charity declaration form.
To safeguard the fund’s charitable status, you will need to provide your charity commission, Northern Ireland or Scottish charity register registration number or HM Revenue & Customs (Charities) claims reference number.
The charity declaration is included in the standard application forms for both Charifund and Charibond.
To invest on a regular basis, you will also need to complete a direct debit instruction. You may choose to have payments taken on the 1st, 10th or 22nd of the month. Payment frequency can be monthly, quarterly, six-monthly or annually. We are unable to accept standing orders.
Prices may fluctuate and you may not get back your original investment.
How can a charity sell units or shares?
Charifund units and/or Charibond shares can be sold every business day either in writing or by telephone between 8am and 6pm.
Instructions will be carried out on receipt at the next-calculated price. If instructions are received by 12 noon, for example, they will be carried out at that day’s price. All purchases are dealt on a forward price basis only.
A charity can sell its holding, in full or in part, at any time. The proceeds will be paid four business days after the valuation point, following the receipt of dealing instructions or a duly completed form of renunciation (for each fund, as appropriate) – according to whichever is later. Contact us if you need any further information.
How can I follow the progress of the charity's investment?
When you buy or sell units in Charifund or shares in Charibond, we will send you a contract note showing the full details of the deal.
Certificates are not issued but the trustees will, on request, certify to holders the number of units or shares held in their name. Details of quarterly income distributions are sent to the first named holder. We send you a manager’s report about the fund’s investments and performance every six months. We also issue quarterly valuation statements by post.
Click here to view daily fund prices
How is a charity's money invested?
There is a single price for buying and selling units in Charifund. The unit value is calculated according to Financial Conduct Authority regulations for collective investment schemes.
The Charibond share value is calculated according to the charity commission Scheme for the fund.
Lines are open between 9am and 5pm, Monday to Friday. For security purposes, and to improve the quality of our service, we may record and randomly monitor telephone calls.
How much can a charity invest?
There is no minimum initial lump sum amount for investments made into Charifund or Charibond. However, we do insist that at least one Charibond share or Charifund unit is purchased in any transaction. There is a £10 minimum per month for regular investments by direct debit.
What if the charity changes its mind?
Cancellation rights do not apply to shares bought in Charibond.
The following cancellation right applies to Charifund only:
Cancellation rights only apply where an investor has bought units through a financial adviser and do not apply where an investor deals direct with M&G. The fact that cancellation rights are not applicable does not affect an investor’s right to sell the investment at any time at the ruling bid price.
Under the Financial Conduct Authority’s conduct of business sourcebook, an investor is, in certain circumstances, entitled to cancel a contract to buy units and have the money returned.
Investors will not be refunded in full if the price of the units falls before we are informed that the cancellation notice has been served. This is because an amount equal to such fall in the price will be deducted from the refund that would otherwise have been made.
If a charity has the right to cancel you will be sent a cancellation reminder following your investment. If you want to exercise your right to cancel you should return this cancellation reminder to M&G Charity Department, PO Box 9038, Chelmsford CM99 2XF.
What type of units or shares are available?
Income units in Charifund and income shares in Charibond allow you to receive income quarterly.
Accumulation units in Charifund and accumulation shares in Charibond provide a facility to reinvest income. This is reflected in the accumulation unit or share price. The number of accumulation units or shares does not change when income is reinvested.
Income units and accumulation units are available for Charifund. Income shares and accumulation shares are available for Charibond.
When are prices calculated?
Charifund and Charibond prices are calculated at 12 noon each business day. They are updated on our website from around 9pm each day.