Newton Investment Management, part of BNY Mellon, is planning to close its common investment fund (CIF) for charities as it becomes a relatively outdated investment structure.
The unit holders in the fund will be able to exchange their units with a new unit trust vehicle focused at the voluntary sector, which is scheduled to be launched on 9 May, according to Third Sector.
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Known as the Global Growth & Income Fund for Charities, the CIF was worth £377 million at the end of last year.
The closure follows a decision of the Charity Commission that it would not, except in exceptional circumstances, set up any new common investment funds.
Last year, the Commission has launched two new model schemes for establishing CIFs, which will come into force in July this year.
Alan Goodwin, head of charity and institutional account management at Newton, said: "The Newton Global Growth & Income Fund for Charities is designed to build on the legacy of its predecessor, providing a smooth transition into the new regulatory environment while retaining key features and aims. Our charity-specific funds reflect our commitment to providing the right solutions for our current and prospective clients".
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By GlobalDataA Newton spokeswoman said: "The Charity Commission anticipates that, moving forward; many new investment funds established for the charity sector will be established as Financial Conduct Authority-authorised schemes. As a result of the commission’s stance, it is likely that over time common investment funds will become a relatively outdated investment structure.".
The spokeswoman added that the Charity Commission will publish new guidance on CIFs in June this year.
