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.

This site uses cookies

The cookies settings on this website are set to ‘allow cookies’ to give you the best experience of our website. If you would like to find out more about cookies or change your settings, please refer to our Privacy & Cookies policy.

By proceeding beyond this page, you are agreeing to our use of cookies.

Audience

Share Exchange Scheme

The M&G Share Exchange Scheme is an inexpensive way of turning your shares or gilts into an M&G investment, so you can benefit from all the advantages of a ‘pooled’ investment.

The scheme is simple and straightforward and we arrange the entire process on your behalf.

How does the scheme work?

We arrange for your shares to be sold through a stockbroker. The stockbroker’s commission will be deducted from your proceeds before they are reinvested.

Shares are normally sold in the afternoon of the day we receive the certificate(s) from you. The net proceeds are reinvested in your chosen fund(s) on the day settlement is received (usually three working days after the sale). This means you will be out of the market until your settlement is received and reinvested.

Which funds are available to invest in?

If you are a charity and want to exchange shares or gilts (bonds* issued by the UK government), there are two M&G charity funds you can invest in.

Charifund

An equity** fund registered as a charity itself, Charifund aims to provide a high and growing income while protecting your capital from the erosive effects of inflation. Any charity registered in the UK can invest in Charifund.

Charibond

Charifund is an actively managed fixed-interest fund that invests in deposits, gilts and other sterling-denominated corporate bonds, while aiming to preserve capital values.

This fund is available to charities registered in the UK allowed to invest in common investment funds. It is suitable for the fixed-interest portion of a charities portfolio.

Other funds

Alternatively, we can arrange for charities to reinvest the proceeds into one or more of our wider range of OEIC funds covering global equity, multi asset and fixed interest solutions. Please contact the M&G Charities team directly if you’d like to learn more about our wider fund range.

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

* A loan, usually taken out by a government or company, which normally pays a fixed rate of interest over a given time period, at the end of which the loan is repaid.

** Shares of ownership in a company.

What are the charges and minimum investment?

When using the M&G share exchange scheme you need to invest a minimum of £1,000.

The following commission charges apply to each individual stock to be sold (not to the total value of all stocks sold):

  • 1% on the first £5,000 of the transaction value of each stock
  • 0.5% on the next £5,000 of the transaction value of each stock
  • 0.25% on the remainder of each stock

There is a minimum charge of £7.50 per stock sold. You will need to meet any additional expenses, such as the £1 levy per transaction of £10,000 or more made by the stock-exchange panel of takeovers and mergers. Buyers of the stocks will be liable for any stamp duty.

Which stockbroker will be used?

We will instruct The Share Centre Limited to sell your shares. It is a member of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority under reference number 146768.

Will I be out of the market at any point?

Shares are normally sold in the afternoon of the day we receive the certificate(s) from you. The net proceeds are reinvested in your chosen fund(s) on the day settlement is received - usually three working days after the sale. This means you will be out of the market until your settlement is received and reinvested.

Which shares / investments can I sell?

We only arrange to sell shares and gilts listed on the London Stock Exchange. Foreign stock, bearer stock and shares in OEICs, unit trusts and common investment funds are not eligible for this scheme.

Can M&G refuse to sell any of my holdings?

Our share exchange scheme applies to shares and gilts listed on the London Stock Exchange. We reserve the right to refuse to sell any holding if we believe there could be problems in arranging sales or delivery. You should always make sure all the certificates contain up-to-date details and that the potential value of the sale will cover the minimum commission fee.

What happen with rights issues and dividends?

If, due to a delay in registering the change of ownership, you receive a dividend or rights issue, you may receive a claim from the buyer of your shares, which you will be required to settle. This won’t apply if you sell your shares exclusive of dividends or rights issues.

What information will I receive?

As part of the scheme, we will send you:

  • A covering letter confirming the transaction
  • A broker’s contract note(s) for the shares sold on your behalf
  • Documents confirming your reinvestment, once it’s been completed at M&G

Need further information?