4thekids - a self-select Child Trust Fund

The Child Trust Fund
The Child Trust Fund (CTF) was launched on 6th April 2005 and is to encourage parents and, as they grow up, their children to save for the future.

Every child born in the UK will receive from the Government an endowment of £250 in the form a voucher which will be issued to the parent who claims Child Benefit. On presentation to an approved CTF Provider, this voucher will be converted into cash and then invested for the benefit of the child. Children born into families which are in receipt of Child Tax Credit (CTC) qualify for a further endowment of £250. This will be paid by the Government directly into the child's CTF account.

Each year, family and friends may contribute up to £1,200 to a child's CTF and on the child's 7th birthday, the Government has pledged to make a further contribution of £250.

At the age of 18 years, the CTF will attain the age of maturity, as will the child who will then have unrestricted access to the accumulated fund. A fully funded CTF could be worth in excess of £25,000* at maturity.

* Assumes £1,000 contributed annually for eighteen years, an annual growth rate of 7% and inflation of 2% per annum The 7% rate is an illustration and actual returns will depend on the movements in the stock market which fluctuates in value both up and down. Calculated using investment growth calculator at http://personal.fidelity.com/toolbox/
growth/growth.shtml

The 4thekids Child Trust Fund (CTF) is “self-select”, allowing parents to select the investments that are held within the CTF and to buy and sell investments as and when they wish. Alternatively, parents may appoint a stockbroker or other independent financial adviser to manage their CTF investments for them. There is an extensive range of investments that are CTF qualifying and Reyker will allow parents to invest in UK, European and US equities, in a range of loan stocks, gilts, unit trusts, investment trusts, OEICs, and of course cash deposits.

Our 4thekids CTF is really aimed at families who will be able to subscribe additional cash to their children’s CTFs (the annual subscription allowance is £1,200), enabling them to establish a balanced and diversified portfolio over the years.

Reyker will charge just 1% per annum for the provision of this CTF plus a Stock Settlement Levy of £2.50 per deal. In addition buying and selling securities will incur dealing commissions and stamp duty at 0.5% on certain purchases.

Download CTF application form and Terms & Conditions here.

There are two types of CTF, Stakeholder and Non-Stakeholder.
Our 4thekids self-select CTF is a Non-Stakeholder CTF.

A Stakeholder CTF is one that satisfies a number of conditions laid down by the Government (see below).

The idea is that Stakeholder accounts will appeal to those parents who are new to, and perhaps a bit nervous about investing in equities or “stocks and shares”.

A Stakeholder CTF must have exposure to stocks and shares, and is invested in a number of companies in order to reduce the risk. It must also be “life-styled”. This means that when your child reaches the age of thirteen, money in the CTF must be progressively moved to lower risk investments or assets. CTF Providers will consider how well shares are performing to decide how much to move over into safer assets and how quickly. Life-styling is intended to protect your CTF from stock market losses as your child’s eighteenth birthday approaches.

Stakeholder Providers must accept a minimum contribution of £10 into a stakeholder account and may not charge more than 1.5% per annum for the provision of the CTF.

Non-Stakeholder CTF Providers are not bound by the above conditions and as there is no cap on fees, they may charge more than 1.5% per annum. Reyker charge just 1% per annum.

A Provider who does not offer a Stakeholder CTF must provide access to a third-party Stakeholder and our choice is the Stakeholder CTF provided by Children’s Mutual. Details of this can be found at www.thechildrensmutual.co.uk


Copyright 2008 Reyker Securities plc. All rights reserved	Registered (number 1747595) and trading at 46 St James’s Place, London SW1A 1NS

HOME \| CHARGES \| DOCUMENT CENTRE \| ABOUT US \| CONTACT US	Reyker Securities plc (Authorised and regulated by the Financial Services Authority)

Our 4thekids CTF is really aimed at families who will be able to subscribe additional cash to their children’s CTFs (the annual subscription allowance is £1,200), enabling them to establish a balanced and diversified portfolio over the years.

There are two types of CTF, Stakeholder and Non-Stakeholder. Our 4thekids self-select CTF is a Non-Stakeholder CTF.

There are two types of CTF, Stakeholder and Non-Stakeholder.
Our 4thekids self-select CTF is a Non-Stakeholder CTF.