Dealing procedures

Can a charity switch between unit types?

A charity may switch between income and accumulation unit types within the M&G Charity Funds. There is no charge for this as long as instructions are provided in writing and signed by two authorised signatories of the charity.

Can a charity take a gross income from its investment?

Charifund & M&G Charity Multi Asset Fund

Holders receive income in the form of a dividend, as Charifund is an equity-based fund and M&G Charity Multi Asset Fund is a multi-asset fund. 

There is no UK tax deducted prior to income distributions.

Charibond

Holders receive income in the form of interest distributions from which no income tax is deducted.

If you buy units 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.

Further information

Registration

The best 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 (eg via a nominee/custodian or investment platform), we recommend you call our Charities Helpline on 0800 917 4472 to discuss this. We do not recommend registering in the names of individuals, this can lead to unnecessary complications when personnel change and re-registration is necessary.

Lines are open between 09:00 to 17:00, 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 monitor telephone calls.

Money Laundering

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. 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, release the proceeds of redemption or carry out such instructions.

How can a charity buy units or shares?

Units in any M&G Charity Fund can be bought every business day. You can buy units by submitting a completed application form or additional contribution form, by calling the Charites Helpline on 0800 917 4472. 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’. You may also send us proceeds electronically. Relevant bank details can be obtained by calling the Charities Helpline on 0800 917 4472 or email charities@mandg.co.uk

Lines are open between 09:00 to 17:00, 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 monitor telephone calls.

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 units in the M&G Charity Funds you will need to complete an application form in writing, or a charity declaration form if placing by telephone.

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 all M&G Charity Funds.

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.

Please note, the value of the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.

How can a charity sell units?

Units of all M&G Charity Funds can be sold every business day either in writing or by telephone between 09:00 and 17:00.

Instructions will be carried out on receipt at the next-calculated price. If instructions are received by 12:00, 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 three business days after the valuation point, following the receipt of dealing instructions.

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 any M&G Charity Fund, 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 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 the M&G Charity Funds. The unit value is calculated according to Financial Conduct Authority regulations for collective investment schemes.

How much can a charity invest?

There is no minimum initial lump sum amount for investments made into The M&G Charity Funds. However, we do insist that at least one 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?

Under the Financial Conduct Authority’s Conduct of Business Sourcebook, an investor is, in certain circumstances, entitled to cancel a contract to purchase 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, because an amount equal to such a fall in the price will be deducted from the refund that would otherwise have been made. Cancellation rights apply only where an investor has bought units through a financial adviser and do not apply where an investor deals direct with M&G, but the fact that cancellation rights are not applicable does not affect an investor’s right to sell the investment at any time.

If a charity has the right to cancel it will be sent a cancellation reminder following its investment. If the charity wishes to exercise its right to cancel it should return this cancellation reminder within 14 days of receiving it to M&G Securities Limited, PO Box 9038, Chelmsford CM99 2XF.

What type of units are available?

Income units in M&G Charity Funds allow you to receive income quarterly.

Accumulation units in M&G Charity Funds provide a facility to reinvest income. This is reflected in the accumulation unit price. The number of accumulation units does not change when income is reinvested.

Income units and accumulation units are available for all M&G Charity Funds.

When are prices calculated?

Prices are calculated at 12:00 each business day. They are updated on our website from around 21:00 each day.