Clear costs

Investments

CAF FUNDS AND PRICES

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.

Important information

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.

I understand, please proceed

< Back

Woodford/ Link Equity Income fund update 3 February 2020

  • Read more

    Last week, Link Fund Solutions (the Authorised Corporate Director of the Fund) issued a number of updates about the LF Woodford Equity Income Fund which is one of a broad range of the underlying investments of the CAF UK Equity Fund.

    In November Link decided not to re-open the fund following it's suspension on 3 June and instead wind it up as soon as is practicable. The first distribution of capital to investors, including the CAF UK Equity Fund, took place on 30 January.

    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, underperformed both its peers and the UK market in recent years.

    Due to the underperformance, investors chose to disinvest heavily in the months leading up to June 2019. This caused issues within the Fund as holdings had 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. This reorganisation did not produce the desired results and Link decided it would not be in the best interests of investors to reopen the Fund. Woodford Investment Management was removed from the management of the fund on 15 October 2019.

    The Fund’s assets were 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 was appointed to sell the assets in Portfolio A and used the proceeds to purchase money market funds and FTSE 100 index instruments. 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.

    The fund name was officially changed from 'LF Woodford Equity Income' to 'LF Equity Income Fund' (LEIF) in December 2019.

    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.

    Key points of the recent updates:

    • In a letter issued on 28 January, Link advised investors of the first distribution of capital due under the wind up. The CAF UK Equity Fund is invested in the C Sterling Accumulation class and received 58.6631 pence per share.
    • The payment covers just over 75% of the value of the assets in the fund, equivilent to £2.2bn. The assets involved in this part of the payout are primarily made up of the sellable, liquid holdings in Portfolio A that Blackrock are selling.
    • Investors will also receive income distributions of £9.2m in February and £0.45k in March.
    • Estimated winding up costs of £10.3m have been set aside by Link.
    • Between suspension on 3 June 2019 and 24 January 2020 the fund has fallen by 19.71% in value. The performance from 15 October, the date of the decision to wind up the fund to 24 January, showed a loss of 4.49%. The benchmark FTSE All-Share rose by 9.65% over the former period.

    Update on progress

    This distribution of capital represents the majority of the value of the assets of Portfolio A (the quoted assets) and around 75% of the overall value of the Fund.

    The liquidation of the unquoted book, Portfolio B managed by PJT Partners, is still in progress.

    At this stage, Link says it's unable to confirm when the the sale of these assets will be completed or the date of any further partial or full repayments.

    Fund valuation

    Link will continue to calculate and publish the Net Asset Value (NAV) per share of the assets in the LEIF, but will now issue these on a weekly, rather than daily basis.

    The Fair Value Pricing committee of FundRock Partners, the Authorised Corporate Director of the FP CAF UK Equity fund, decided it was prudent to discount this NAV by 3.33% in FP CAF UK Equity fund valuations. This is to reflect the potential difference in value between the sale price achieved for the unquoted assets in the LEIF and Link’s current estimate of the value of those assets.

    This valuation basis will be kept under regular review.

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

    The CAF UK Equity Fund will receive £5.4m under this capital distribution, which Octopus will reinvest in accordance with the Fund aims and objectives. This sum equates to just under 5% of the total FP CAF UK Equity portfolio value.

    This leaves around £2.3m still invested in the LEIF, or 1.5% of the total value of the fund.

    Why does the CAF UK Equity Fund hold the LEIF fund?

    The Link Equity Income Fund is part of a wide portfolio of investments held within each FP CAF fund, which are designed to complement 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 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 remains fully tradable and you can choose to sell all or part of your holding it if you wish. The LEIF 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 25/02/2020

CAF UK Equitrack Fund Share type Bid price (pence) Offer price (pence) Yield Total fund size (£m)
CAF UK Equitrack Fund Accumulation units 130.40
130.40
4.0  
CAF UK Equitrack Fund Distribution units 79.57 79.57 4.0  

          174.04

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 Conduct Authority.

CAF Socially Responsible Portfolio

Figures as at 25/02/2020


CAF Socially Responsible Portfolio Share class  
Single price (pence)  Yield Total fund size (£m)
BMO Responsible Global Equity Fund 1 Accumulation shares 635.50 0.0  
BMO Responsible Global Equity Fund 2 Accumulation shares 493.80 0.6  

          404.63
BMO Responsible Sterling Corporate Bond Fund 1 Income shares 130.30 1.4  
BMO Responsible Sterling Corporate Bond Fund 2 Income shares 130.80 2.0  

          74.83
BMO Responsible UK Equity Fund 1 Accumulation shares 1563.00 1.4  
BMO Responsible UK Equity Fund 2 Accumulation shares 389.00 2.2  

           294.01  
BMO Responsible UK Income Fund 1 Income shares 149.20 4.1  
BMO Responsible UK Income Fund 2 Income shares 197.50 4.2  

          164.76

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.

FP CAF Investment Funds

THE CAF FUNDS

Fixed interest

Global Bonds



OctopusStacked_web_72dpi_090419

FP CAF Fixed Interest Fund

This sub-fund’s goal is to deliver higher combined income and capital growth than the global bond markets over a medium to long-term timeframe.

Octopus Investments Ltd.

This sub-fund’s goal is to deliver...

Sterling Corporate Bond



BMO Global Asset Management

BMO Responsible Sterling Corporate Bond Fund

The OEIC fund aims to deliver an attractive level of income through investment in a portfolio of ethically screened UK corporate bonds.
The OEIC fund aims to deliver an attractive...

UK Equity

UK All Companies



BMO Global Asset Management

BMO Responsible UK Equity Fund

The Fund aims to provide long term capital growth and an increasing income, with the emphasis on capital growth.
The Fund aims to provide long term capital...


LandG Logo

CAF UK Equitrack Fund

A collective investment scheme that aims to mirror the capital and income returns of the UK Stock Market. It is passively managed by Legal & General Investment Management.
A collective investment scheme that aims to...


OctopusStacked_web_72dpi_090419

FP CAF UK Equity Fund

Focusing on the medium to longer term, the sub-fund aims to generate higher achieve higher capital growth than the UK equity market average.

Octopus Investments Ltd.

Focusing on the medium to longer term, the...

Global Equity



BMO Global Asset Management

BMO Responsible Global Equity Fund

The fund aims to provide capital growth by investing in an actively managed portfolio of ethically screened, diversified global equities.
The fund aims to provide capital growth by...


OctopusStacked_web_72dpi_090419

FP CAF International Equity Fund

With a medium to longer-term focus, this sub-fund targets higher capital growth than the global equity market average (excluding the UK).

Octopus Investments Ltd.

With a medium to longer-term focus, this...

Mixed

Mixed investment 40-85% shares



BMO Global Asset Management

BMO Responsible UK Income Fund

The objective of the fund is to generate income with the prospect of capital growth.
The objective of the fund is to generate...

Alternative

Targeted Absolute Return



OctopusStacked_web_72dpi_090419

FP CAF Alternative Strategies Fund

By investing in alternative investment strategies across multiple asset classes, this sub-fund aims to deliver a positive return in any market environment over a 12-month rolling period.

Octopus Investments Ltd.

By investing in alternative investment...

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.