The Charities Aid Foundation (CAF) is to dissolve two of its common investment funds (CIFs), and will instead offer a series of multi-manager ‘fund of funds’.
As part of changes which it says are based on client feedback, CAF has partnered with Octopus Investments to offer ongoing personalised advice on issues such as asset allocation.
While the CIFs were restricted to a single-manager, single asset approach, the new funds will be open-ended investment companies (OEICs), which have the option to blend asset classes and which will utilise funds run by various managers.
As a result, the CAF UK Equity Growth and CAF Bond Income funds will be wound up and holdings will be transferred to two new funds, namely the ‘UK Equity’ and ‘Fixed Income’ respectively.
The other two new funds created will be for ‘Global Equity’ and Alternative Strategies’. Subject to FSA approval the new funds, which will be exclusive to charities, should open in March 2011.
CAF’s existing funds, the CAF UK Equitrack CIF managed by Legal and General, and its Socially Responsible Portfolio managed by F&C Investments, will continue in their current form.
John Low, chief executive of CAF, said: “The investment of charitable funds is an important decision. I hope these changes, which are based upon extensive feedback from existing clients, will make investment decisions easier.
“The new funds will enable charitable organisations and CAF Trust account holders to create a tailored portfolio from a wider range of asset classes with different levels of risk and reward, depending upon their investment needs.”
New style of service
Octopus Investments is best know as a retail fund management company, selling to individuals in the UK and with £2bn assets under management, and managing director Guy Myles told Civil Society this venture represents a new area for the firm.
“We look for markets where there’s a significant unmet need or demand for a new approach, so we’ve used that method in all the areas we’ve operated in and gone on to be the market share leader in all the areas we’ve operated in so far.
“Together with CAF we became convinced there was a major opportunity to offer a high quality new style of service with different features.”
