The UK-based Foresters Friendly Society says it will launch a Child Trust Fund next year, as part of a government-backed scheme to increase the savings of children.
From January, vouchers for £250 will be sent to parents of all children born after 31 August2002 as part of a Government-backed initiative to create savings and investment accounts for children.
Foresters Friendly Society chief executive Mark Rothery said it had carried out detailed research in order to tailor its plan to investors’ requirements. “A CTF is a long term savings plan that cannot be cashed in by the child until their 18th birthday,” he says. It has a capital guarantee so investors know the money being put aside on the child’s behalf is totally safe. In order to provide significant growth over such a long period it is important that money in the children’s trust fund has exposure to a wide range of assets such as equities and property Our with-profits fund provides this exposure in a way that provides risk diversification and a smoothing effect on the growth throughout the period of investment. What’s more, the fund has a consistent track record of providing solid long-term growth.”
The CTF from Foresters Friendly Society will have a single 1.5 per cent annual charge.
“We designed this deliberately because we knew we would need to compete favourably with stakeholder CTF providers and because, understandably, investors want to be absolutely clear what they are being charged,” says Rothery.
To ensure all potential investors have as much information as possible, Foresters Friendly Society will also provide detailed information on a specific stakeholder CTF policy to anyone inquiring about its CTF.
Foresters Friendly Society is a mutual founded 170 years ago.