EXPLORE CHEAPER SHARE CLASSES
If you invest via a Fund Manager you might find that the CAF Investment Account has your existing funds, but with cheaper share classes. Lower charges could mean higher overall returns from the fund, so it's worth thinking about whether switching share class makes sense for you.
How to change share class
There are two ways to change share class - and you'll need to decide which option is best for your charity, based on the value and type of investments you hold:
1. Sell/buy: sell your holdings in the original share class and reinvest the proceeds in the new, cheaper share class of the same funds.
The fund price may change between selling and buying, and there may be bid-offer spreads to take into account.
This straightforward option is quicker than switching share class - typically taking days, compared to several weeks.
2. Convert: the Fund Manager swaps your holdings in the original share class for holdings in the new share class - all without a ‘trade’ taking place.
Conversion usually takes longer than just selling your holdings and reinvesting them in a new share class, but there could be other advantages. To find out more, contact our team.
Because conversion is at the Fund Manager’s discretion, we can’t guarantee that conversion will take place for non-CAF funds.
If you instruct us to convert your FP CAF Funds, CAF UK Equitrack Funds or any F&C Responsible Fund acquired via the CAF Socially Responsible Portfolio within three months of opening your CAF Investment Account, we'll cover the costs for you.