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Find out about CAF funds as well as the latest fund prices for the CAF UK Equitrack Fund, the CAF Socially Responsible Portfolio and FP CAF Funds.

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The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. Past performance is not a guide to future performance. There is no guarantee about the level of capital or income returns that will be generated.

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Woodford Equity Income fund update 17 October 2019

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    As you may have seen in the press, there have been further developments affecting the LF Woodford Equity Income Fund which is one of a broad range of the underlying investments of the CAF UK Equity Fund.

    Following a period of suspension since 3 June 2019, Link Fund Solutions (the Authorised Corporate Director of the Fund) has now decided not to re-open the fund and instead wind it up as soon as is practicable.

    Please be advised that you do not need to take any action at this time. However, if you have any queries, our client team is on hand to answer them, as are the fund managers at Octopus Investments. Please call 03000 123 444 to speak to your CAF Client Relations manager, or 0800 316 2295 to speak directly to Octopus.

    Background

    The Woodford Equity Income Fund, run by fund manager Neil Woodford, has underperformed both its peers and the UK market in recent years. Woodford himself is known for adopting a contrarian view that largely kept his investors out of the dot com bubble in 2000 and financial services in 2008. Following initial success, the Woodford Equity Income Fund (WEIF) suffered due to a number of investment decisions that have worked against it and Woodford stated that he believed the impact of Brexit to be over-stated and he had positioned his Fund accordingly.

    Due to the underperformance, investors chose to disinvest heavily in the months leading up to June 2019. This caused issues within the WEIF as holdings have to be sold to raise the required cash and the remaining assets rebalanced frequently. As liquidity suffered the Fund struggled to achieve good prices for what it was off-loading. As such Link decided to suspend trading in the Fund, allowing the manager time to reorganise the assets, improve liquidity and increase stability.

    It’s important to remember that the fund value is based on the value of the underlying investments; these continue to be owned and independently valued by specialists in the UK market.

    Recent announcements

    Link has now decided that it is not in the best interests of investors to reopen the WEIF. The Fund will be wound up, which means that it is closed and the money returned to investors in instalments as the assets are sold off. The payments to investors will be determined by the share price of the underlying assets when they are sold. Link expects the winding up process to begin in January 2020 following formal approval from the Financial Conduct Authority, with the first payment to the CAF UK Equity Fund anticipated by the end of that month.

    Prior to the suspension in June, Link had agreed with Woodford Investment Management a timeline to complete the repositioning of the fund by early December 2019. However, Link stated yesterday that while progress has been made, it has not been sufficient to indicate when the fund could reopen. As a result, Link has instead concluded that, “it is in the best interests of all investors for the Fund to be wound up by way of an orderly realisation of the Fund’s assets”.

    From 15 October 2019, Woodford Investment Management is no longer the Fund’s manager, and subject to regulatory approval, the Fund will be renamed the LF Equity Income Fund.

    The Fund’s assets have been split into two parts, one comprised of listed assets (“Portfolio A”) and one comprised of the unlisted and certain highly illiquid listed assets (“Portfolio B”). BlackRock has been appointed to sell the assets in Portfolio A and use the proceeds to purchase money market funds and FTSE 100 index instruments. This process will enable Link to return part of investors’ cash as soon as possible once the Fund begins the winding up process. PJT Partners (UK) Limited (“Park Hill”) was appointed during the suspension period to assist in selling the assets in Portfolio B and will continue in this role.

    Fund valuation

    Link has confirmed that they will continue to calculate and publish the Net Asset Value (NAV) per share of the assets in the WEIF on a daily basis, which is the valuation which will continue to be used within the FP CAF UK Equity fund.

    How much of the Woodford Equity Income fund is held by CAF UK Equity Fund?

    At the moment, the CAF UK Equity Fund holds around £9m in the WEIF, which equates to 8.5% of overall Fund assets. Since the introduction of WEIF in March 2015, its allocation has been within the 7.5-10% range.

    Why does the CAF UK Equity Fund hold Woodford funds?

    The Woodford Fund is part of a wide portfolio of investments held within each FP CAF fund, which are designed to compliment each other and to reduce the impact of any negative incidents affecting one particular fund or part of the diverse UK market.

    What action is being taken by the FP CAF fund managers, Octopus?

    Octopus is monitoring the position daily and will reinvest the cash released by Link as soon as it is available.

    Are any other FP CAF funds impacted?

    The FP CAF Alternative Strategies Fund has less than 1% of its assets invested in Woodford Patient Capital Trust shares.

    Can I get my (charity’s) money back?

    The CAF UK Equity Fund is still fully tradable and you can choose to sell all or part of your holding it if you wish. The WEIF holding is one of many underlying investments in the Fund and is the only one affected by this situation.

VIEW THE LATEST FUND PRICES

The prices shown are those calculated for the date shown. The funds deal on a forward pricing basis, therefore these are only indicative of prices an investor may pay or receive for actual transactions. The price you will pay or receive will be calculated after receipt of dealing instructions.

The prices, yield and fund size is provided by the relevant Fund Manager or Authorised Corporate Director and CAF accepts no liability for any inaccurate information provided by the Fund Manager.

If you're in any doubt about these prices you should consult your stockbroker, solicitor, accountant or other professional adviser.

These Funds are marketed through CAF Financial Solutions Limited (CFSL), which is authorised and regulated by the Financial Conduct Authority (FRN 189450).

CAF Financial Solutions Limited, which is a wholly owned subsidiary of CAF, has issued and approved the content of this page.

CAF UK Equitrack Fund

Prices as at 15/11/2019

CAF UK Equitrack Fund Share type Bid price (pence) Offer price (pence) Yield Total fund size (£m)
CAF UK Equitrack Fund Accumulation units 130.70
130.70
4.0  
CAF UK Equitrack Fund Distribution units 79.72 79.72 4.0  

          176.03

The fund size shown above for the CAF UK Equitrack Fund is the value of the fund calculated on the last working day of the previous month.

These prices are historic and therefore only indicative of prices an investor may pay or receive for actual transactions, which are calculated after receipt of dealing instructions. Price, yield and fund size information is provided by Legal & General (Unit Trust Managers) Limited.

The CAF UK Equitrack Fund is managed and operated by Legal & General (Unit Trust Managers) Limited, which is authorised and regulated by the Financial Services Authority.

CAF Socially Responsible Portfolio

Figures as at 15/11/2019


CAF Socially Responsible Portfolio Share class  
Single price (pence)  Yield Total fund size (£m)
BMO Responsible Global Equity Fund 1 Accumulation shares 623.40 0.0  
BMO Responsible Global Equity Fund 2 Accumulation shares 483.20 0.6  

          373.46
BMO Responsible Sterling Corporate Bond Fund 1 Income shares 126.70 1.8  
BMO Responsible Sterling Corporate Bond Fund 2 Income shares 127.00 2.5  

          70.00
BMO Responsible UK Equity Fund 1 Accumulation shares 1501.00 1.5  
BMO Responsible UK Equity Fund 2 Accumulation shares 372.80 2.3  

           281.71      
BMO Responsible UK Income Fund 1 Income shares 143.80 4.3  
BMO Responsible UK Income Fund 2 Income shares 189.60 4.3  

          153.74

These prices are historic and therefore only indicative of prices an investor may pay or receive for actual transactions, which are calculated after receipt of dealing instructions. Price, yield and fund size information is provided by F&C Fund Management Limited.

The funds featured in the CAF Socially Responsible Portfolio are included in the range of sub-funds offered through F&C Investment Funds ICVC II and Stewardship Investment Funds ICVC. Applications may only be made on the basis of the current Prospectus. The Authorised Corporate Director of the ICVCs is F&C Fund Management Limited authorised and regulated by the Financial Conduct Authority. A registered company limited by shares, registered number 2170242.

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The value of investments may fall as well as rise. You may not get back the full amount that you originally invested. Past performance is not a guide to future performance. There is no guarantee about the level of capital or income returns that will be generated.