Retail Charity Bond

At Castlefield we aim to reflect client values in investment decisions and this approach is exemplified with the recent purchase of the latest offering from the Retail Charity Bonds (RCB) platform. For those unfamiliar with Retail Charity Bonds, they provide the opportunity for both smaller issuers and investors to access the bond market. This is of particular importance to charities as borrowings can be hugely beneficial for furthering projects. The most recent issue comes from the Charities Aid Foundation (CAF). Established in 1924 the charity is the 9th largest in England and Wales in terms of income, 7th by charitable spending and 8th by size of investment*. CAF aims to make it as easy as possible for individuals and companies to maximise the impact of their charitable giving, offering help in navigating mechanisms such as Gift Aid or payroll giving. CAF actively campaigns for policy changes to help achieve their stated aims. Recent successes include a 2012 award-winning campaign to persuade the Government to drop the proposal to cap tax relief on major charitable donations, a measure that would have cost the charity sector up to £500m per year**.This is the third bond to be issued by RCB and the third to see early closure following strong demand from investors. We see this as evidence for the increasing popularity of fixed income social investment for investors and borrowers alike.


* Teleconference with issuers and sponsors Charities Aid Foundation on 04/03/2016



Compliance Reference: MERCBKH/010416

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