Charities Aid Foundation has sacked Deutsche Asset Management as manager of its two Common Investment Funds.
Around 600 charities invest close to half a billion pounds in the CAF UK Equity Growth Fund and the CAF Bond Income Fund, which have both been managed by Deutsche for the past eight years. But following a selection process, UBS will take over management of the UK Equity Fund and Insight Investment, the asset manager of the HBOS Group, will take over the running of the Bond Income Fund.
Tracey Reddings, executive director of Charity Financial Services at CAF, said: "This move enables the trustees of the funds to review the existing mandates with the aim of adopting more specialist managers, and, where appropriate, more demanding performance benchmarks."
Last year the CAF UK Equity Growth Fund posted a return of 11.4 per cent, a performance that merited 10th place out of 12 for UK Equity common investment funds. The CAF Bond Income Fund returned 5.9 per cent for 2004. CAF will be reviewing the costs of both funds.