Common Investment Funds (CIFs) are collective investment schemes open to charities in the UK set up by the Charity Commission under section 24 of the Charities Act 1993. They operate as investment vehicles and can register as charities.
In a collective investment scheme, money contributed to the scheme by investors is pooled, and the operator of the scheme typically invests the money in a range of investments, in accordance with the published policy of the scheme.
CIFs provide diversification of investment to reduce risk. They enjoy the same tax status as other charities.
CIFs are similar to authorised unit trusts but, unlike unit trusts, they are not authorised by the Financial Services Authority (FSA).
The fact that CIFs are established by the Charity Commission must not be taken as a “kite mark” of quality, the Commission warns. The Commission makes no determination or judgement as to whether a CIF provides an acceptable level of risk or an acceptable level of performance. Investing charities must form their own view with regard to these matters.
As of July 2008, the last sets of annual accounts submitted to the Charity Commission from the 45 commercial CIFs show total assets under management of just over £8.2bn.
n the government’s 2009 Budget, Chancellor Alistair Darling announced that it would consult the Charity Commission on whether it should release responsibility for CIFs and common deposit funds.
Under the new proposals, the funds would be authorised by the FSA and would receive the same security as other FSA-authorised funds in the event of fraud or bankruptcy. Funds would also have to meet FSA standards of management.
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Charity Finance reporter Vibeka Mair compiles a comprehensive guide to common investment prices from the past month.
Charity Finance reporter Vibeka Mair compiles a comprehensive guide to common investment prices from the past month.
High yielding equities present a great opportunity for income-hungry charities, says Angela Lascelles.
Charity finance reporter Vibeka Mair compiles a comprehensive overview of charity investment figures according to fund manager.
The Charities Property Fund has purchased a Tesco Extra supermarket in Nottinghamshire for £43m, meaning the Fund is now fully invested.
The government is to give its policy response to the Charity Pooled Funds Consultation as part of the 2010 budget, which is expected to take place before the general election.
CharityBank has teamed up with Liverpool Vision, the city’s economic development company, to set up a £5m investment fund to support community enterprises in one of the city’s poorest areas.
Charity Finance reporter Vibeka Mair compiles a comprehensive overview of charity investments by fund manager.
A record number of firms participated in the 2009 Charity Finance Fund Management Survey, which is based on information from 49 fund managers with a combined total of £40bn of charity funds under management.
A free online service that analyses and ranks every Common Investment Fund for charities has been launched by Allenbridge Group plc.
Epworth has launched the UK’s first corporate bond common investment fund - the Affirmative Corporate Bond Fund, worth £106m and yielding 5 per cent.
With CIFs on their way to the FSA, Gareth Jones asks where this leaves specialist pooled funds for charities. This year our pooled funds focus comes at a transitional moment, with the future of the two charity specific forms, Common Investment Funds (CIFs) and Common Deposit Funds (CDFs), currently up for consultation.
The Charity Commission has started consulting the sector on a revision of CC14, its guidance on investments. CC14 was last updated in 2003 and is widely considered to be out of date and not fit for purpose in the current financial climate – especialy the sections on hedge funds and socially responsible investment (SRI).
It’s consultation fever in the voluntary sector this summer, with at least six already under way and another expected to launch soon. The consultation on charity leaders’ expenses, sparked by the debate on Charity Finance blogs about whether they should disclose their expenses publicly, launched on 27 July and closes on 30 October.
The Adventure Capital Fund (ACF) has announced that the format of the £70m Communitybuilders Fund has been agreed and that it will open on Monday 7 September. The fund is designed to provide “a mix of loans, grants and mentoring support to a range of community anchor-type organisations across England”.
The proposal to pass regulatory duties for collective investment schemes for charities from the Charity Commission to the Financial Services Authority may lead to increased fees, an investment adviser has warned.
The importance of investment issues is widely under-estimated and the process is under-resourced, according to a new report into charity asset management.
An analysis of the implications for UK foundations of recent criticism levelled at the Gates Foundation
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