You are here J.P. Morgan - Institutional InvestorsCharitiesCommon investment funds

Common Investment Funds

Charities with straight forward investment requirements often focus on our two Common Investment Funds (CIFs) – the UK Equity Fund for Charities and the Bond Fund for Charities. Both launched in 1992, these CIFs can provide charities in England and Wales with a low-cost, tax efficient means of getting exposure to UK shares and bonds.

Choose your strategy

Both CIFs offer a conservative investment approach designed to preserve the real value of capital over the longer term. Each fund has different income objectives. The UK Bond Fund for Charities aims for a steady, high income that is paid quarterly. The UK Equity Fund for Charities aims for capital and income growth over time and takes more risk to achieve this. To enhance stability, the income stream is ‘smoothed’ into quarterly payments.

Our CIFs have a number of features to benefit charities.

Low minimum – to benefit charities of all sizes, the funds’ investment minimum is just £1,000.

Tax benefits – CIFs have special tax treatment compared to other retail pooled funds. Specifically, there is no capital gains tax or stamp duty liability on equity purchases within the funds. They can also pay out gross income.

Low fees – To support charities, fees on our CIFs are kept as low as possible. There are no initial or exit charges and the annual management fee is 0.25% for the Bond Fund and 0.50% for the UK Equity Fund.

No tobacco – CIFs cannot have an ethical policy which limits returns. However, the Charity Commission has permitted our CIFs to avoid tobacco companies.