The information in this site is intended for authorised charities in the United Kingdom only. 

The website is operated by M&G Securities Limited on behalf of itself, Charities Investment Managers Limited and the Trustees of Charibond. M&G Securities Limited is the managing agent for Charities Investment Managers Limited and the fund manager of Charibond.

The information provided is directed at authorised charities in the United Kingdom and is not to be regarded as an offer to buy or sell, securities or investments. Charibond is available for investment by registered charities in the United Kingdom allowed to invest in common investment funds.

Please click the appropriate button to the right to confirm that you are an authorised charity and wish to continue.

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Audience

FAQs

This section contains answers to some of the most common questions we get asked, to help you with any queries you may have.

If the information you need is not included below, please contact our Charities team.

Glossary

Find out more about the terms that are used on our website and in our literature.

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Frequently asked questions

Eligibility and verification

Who is eligible to invest in Charifund or Charibond?

Any charity in England, Wales, Scotland and Northern Ireland can invest in Charifund.

Any charity registered in the United Kingdom, that is allowed to invest in common investment funds, can invest in Charibond.

Prices may fluctuate and you may not get back your original investment.

How does M&G know if a charity is eligible to invest?

Charifund and Charibond operate under a self-certification system agreed with the HM Revenue & Customs. When new investors apply they must complete a declaration on the application form confirming their charitable status by providing their charity commission, Scottish or Northern Ireland charity register registration number, or their HM Revenue & Customs (Charities) claims reference number.

All declarations will be subject to independent checks by HM Revenue & Customs (Charities). It is the charity’s responsibility to ensure all the information it supplies is correct and to let us know immediately if it ceases to be a charity, or it agrees to gift or transfer assets held with M&G to another charity as part of a merger, takeover, or winding-up process.

Visit our forms and literature page to download the relevant forms now.

What if a charity doesn't know its charity commission registration number or HM Revenue & Customs (Charities) claims reference number?

Charities in England and Wales that can’t trace their charity commission number can check the register of charities.

Charities in Scotland that can’t trace their Scottish charity number can check the Scottish charity register. Charities in Northern Ireland that can’t trace their Northern Ireland charity number can check the Northern Ireland charity register.

Charities not on the relevant charity commission register can contact HM Revenue & Customs (Charities), St John's House, Merton Road, Bootle, Merseyside, L69 9BB. Tel: 0845 302 0203.

What happens if M&G does not receive a completed declaration from the charity?

M&G must receive a completed declaration from the charity within 60 days of the initial purchase, or stock transfer execution date.

If we do not receive a declaration, the investment will become void and the units or shares will be sold at the prevailing price at that time.

If the price of the units/shares has risen the charity will be repaid its original investment (or the cash value at point of stock transfer) and the fund will keep any balance

If the price of the units/shares has fallen the charity will not get a full refund of the money it has paid (or of the cash value at point of stock transfer).

In addition, if the charity has received an income distribution before the holding is declared void, this will be deducted from the sale proceeds.

When a charity invests over the telephone, how does it complete a declaration?

When a charity invests by telephone, M&G issues a contract note to acknowledge the deal, along with a declaration form for first time purchases.

Charities can also download a declaration form from our website to complete and return to M&G using the address shown on the application form.

The charity is required to complete this declaration form and return it to M&G within 60 days of making a new investment.

What happens if potential investors can't provide the required evidence?

If you have difficulty providing the standard evidence of identity, contact M&G Customer Relations on 0800 917 4472 to discuss alternative arrangements.

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.

Prove your identity

Why do investors have to prove their identity?

Verifying the identity of our investors means it is more difficult for criminals to access the financial system and use false names, addresses or the identities of innocent people.

We are also less likely to take on customers involved in criminal activities and it helps the police and other law enforcement agencies to detect and investigate crime.

When do M&G verify identity?

Financial services firms are required by law to verify the identity of new customers, including any person acting on behalf of a charity.

A firm may also verify the identity of existing customers when it needs to:

  • Check customers who joined us before the checks were law
  • Check if it is holding out-of-date information for a customer
  • Verify a charity’s bank account is in their name
  • Verify how a charity is set up and the identities of those running it
  • Verify the source of funds (for payments drawn on an account not in the name of the investor)

How does M&G verify identity?

We recognise that charities can be set up in a variety of ways:

  • A limited company
  • A trust with individual trustees
  • An unincorporated association run by officers and a committee

The document(s) needed to establish how the charity is set up varies according to your particular circumstances. We also need to verify the identities of the individuals who have day-to-day control over the charity and instruct M&G on the charity’s holding.

If we are unable to verify an individual’s identity electronically, we will need separate documentary evidence of his or her name and address. Common examples of documentary evidence for UK residents are:

Personal identity documents:

  • Current signed passport
  • Residence permit (issued by the Home Office to EU nationals)
  • Shotgun or firearms certificate
  • EEA member state identity card*
  • Northern Ireland voter’s card*
  • Current EEA or UK photocard driving licence*
  • Blue disabled driver’s pass*
  • Current full UK old-style driving licence (not provisional)*
  • HM Revenue & Customs tax notification*

Documentary evidence of address:

  • Local authority tax bill (valid for the current year)
  • Bank, building society or credit union statement or passbook**
  • Utility bill or utility statement (not mobile telephone bills)**

* These documents are also acceptable as evidence of address, provided they have not been used as evidence of personal identity.

** Dated in the last three months

Dealing procedures

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 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.

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.

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 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 is a charity's money invested?

Charifund

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.

Charibond

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.

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.

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?

Charifund

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.

Charibond

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.

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.

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.

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

Further information

Registration

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.

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 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.

Need further information?