Voluntary sector gains new equity tracker
A new common investment fund aimed at the voluntary sector is being launched by Charities Aid Foundation (CAF).
The CAF UK Equitrack Fund aims to track the performance of the FTSE All-Share Index, offering not-for-profit organisations access to the potential long-term capital and income growth of UK companies. Charitable organisations are able to invest as little as £1,000 in the fund.
Ron Green, senior manager of CAF charity financial services, Ron Green, said Equitrack would offer all charities the opportunity to share in the UK stock market’s potential growth. The FTSE All-Share Index grew by 12.84% (including dividend income) in 2004.
He added, ‘And by spreading the investment over a broad range of stocks, it also reduces the risk associated with holding a more selective portfolio of actively traded stocks – which is an important consideration for charities.’
The fund will be managed by Legal & General Investment Management Limited. CAF said charges will be kept to a minimum, with an annual management charge of just 0.25 per cent per annum. As with all common investment funds, Equitrack is exempt from stamp duty on the purchase of UK equities.