CTF calculator
A great start in life
Our Child Trust Fund savings calculator shows you how much you might need to pay into the Child Trust Fund account each month for 18 years to help achieve different savings goals.
The Children's Mutual
Baby Bond® is our popular stakeholder Child Trust Fund (CTF). It
features all the government's safeguards for stakeholder accounts
which are designed to provide a good financial outcome for your
child's investment.
Baby Bond® Choice Child
Trust Fund is our non-stakeholder, shares-based Child Trust Fund
(CTF) account that offers a range of investment fund
choices.
Baby Bond® Choice Child Trust Fund has certain features in
common with our other Child Trust Fund accounts, such as:
- A built in feature to limit the risk of losing value should
share prices fall as your child’s 18th birthday approaches
- Tax efficient investment growth and payout at 18
But, Baby Bond® Choice Child Trust Fund differs in that:
- You can choose where your child’s money is invested – there’s a
choice of 11 funds from four leading fund managers. (Both Baby
Bond® and Shariah Baby Bond® Child Trust Funds offer investment in
just one fund)
- This choice allows you to select your preference for investment
fund aims - including balancing long-term growth and risk
This means that you can tailor a Baby Bond® Choice Child Trust
Fund account with the help of your Financial Adviser, to your
own investment preferences and attitude to risk.
Please remember that because Baby Bond® Choice
investment is linked to shares the value of the account could
fall as well as rise, and your child may get back less than has
been invested. No-one can access the money except your child, and
not until age 18.
Baby Bond® Choice Child Trust Fund learn more
Baby Bond® Choice Child Trust Fund offers you access to 11 funds
from four different fund managers.
This means that, with the help of your Financial Adviser, you
can choose an investment strategy to suit your needs, and change
that strategy from time to time to take advantage of changing
investment conditions.
A choice of investment options
Baby Bond® Choice Child Trust Fund allows you to choose from 11
funds from the following fund managers:
- Gartmore Group
- Insight Investment
- INVESCO PERPETUAL
- UBS Global Asset Management
You can find out more about the funds in the investment
funds section.
Tax-free lump for your child
The aim of Baby Bond® Choice Child Trust Fund is to build
up a lump sum, free from personal taxes, for your child
when they reach 18. This can be then used for whatever they choose
– maybe to help fund further education, buy their first car,
or to travel the world.
And, to take advantage of the potential for greater growth
offered by shares, we'll invest all money in your choice of one or
more shares-based funds, until your child is 13. From 13 we
gradually move money into a less volatile fund.
A choice of fund aims
Most of the funds offered through Baby Bond® Choice Child Trust
Fund aim to achieve long-term capital growth by investing mainly in
shares. However:
- Gartmore Cautious Managed Fund – aims to
provide both income and long-term growth and invests no more than
60% of your child’s money in shares – which is a more cautious
approach than investing only in shares
- UK Government All Maturities Bond
Fund - aims to limit the risk of overall loss to an
investor by investing mainly in government bonds. This is a
strategy that could appeal to cautious investors.
Aiming for a great return on your investment
The Children’s Mutual, like the government, believes that shares
should produce better returns in the long-term than cash deposit
accounts. That’s why our Baby Bond® Choice CTF, which runs for 18
years, is based on investment linked to shares for most of
that time. However, past performance is not a guide to the future
and your child could get back less than has been paid in.
Choose an investment strategy to suit the needs of you and your
child
Because Baby Bond® Choice Child Trust Fund offers you
flexibility with its choice of funds and investment aims, we
recommend that if you’re not sure which ones to choose, you should
seek the help of a Financial Adviser. They can help you by
considering your current financial situation, what you want for
your child and the level of risk you’re comfortable with. If you
don't have an Adviser you can visit Unbiased.co.uk here for a
list of advisers in your area. Whilst this service is free, you may
be charged for any advice given.
And, if the price of shares is lower in the early years, any
money that you add to your child’s CTF account will be able to buy
more shares in the fund – meaning that the account should have
a better potential for growth when share prices start to
rise.
The Children’s Mutual will gradually move the money in your
child’s Baby Bond® Choice to lower risk investments (such as
government bonds and cash) from your child’s 13th birthday. You can
opt out of this if you wish.
Tax-free investment
Under current regulations all investment growth is free
from personal taxes, as is the lump sum at age 18 (provided the
child is resident in the UK).
Charges
Charges for Baby Bond® Choice Child Trust Fund depend on the
fund(s) that you choose. That means that they could be higher than
those that apply to our other Child Trust Fund accounts. For
more information on the funds and their charges please see the
document below.
Find out more and apply for Baby Bond® Choice Child Trust
Fund
For more information and an Application pack, please complete
our request form or
you can contact us.
Important information
about Baby Bond® Choice Child Trust Fund PDF
PDF, 972KB (opens a new window)
How to get the
most from your child’s CTF
Gartmore Group
Gartmore Group is owned by Hellman & Friedman LLC (one of
the world's leading private equity firms), together with members of
Gartmore's senior fund management and executive team. It's
committed to delivering maximum investment returns through a range
of products designed to meet investors' needs. At 30 September
2009 it had £21.8 billion under management. Source:
Gartmore Group
| Funds from Gartmore Investment Management |
| Cautious Managed Fund |
aims to provide income and long-term growth from a portfolio of
shares, bonds and cash – a more cautious approach then investing
only in shares |
| European Selected Opportunities Fund |
aims to provide long-term growth from a portfolio of
Continental investments |
| US Growth Fund |
aims to provide long-term growth by investing in North American
shares |
Please see the document below for further fund
information.
Important information
about Baby Bond® Choice Child Trust Fund
PDF, 972KB (opens in a new window)
Insight Investment
Insight Investment is owned by Lloyds Banking Group. As at
30 September 2009 it had £83.1 billion in assets
under management and is one of the UK’s largest investment
managers. Source: Insight Investment Funds Management Limited.
| Funds from Insight Investment |
| Foundation Growth |
aims to achieve long-term growth by tracking the FTSE All-Share
Index |
| Evergreen |
is a global fund that is ‘negatively screened’, meaning that it
avoids investing in companies that provide certain ‘restricted’
products and services such as tobacco, gambling and
pornography
it also invests in ‘positive impact’ stocks – companies whose
products and/or services provide a particularly beneficial social
or environmental product or service to society (e.g. renewable
energy, environmental technologies, affordable mortgages,
healthcare, water purification) |
| UK Government All Maturities Bond
Fund |
aims to limit the risk of overall loss to an investor by
investing mainly in government bonds. This is a strategy that could
appeal to cautious investors |
Please see the document below for further fund information.
Important information
about Baby Bond® Choice
PDF, 972KB (opens a new window)
"FTSE" is a trade mark of the London Stock Exchange Plc and The
Financial Times Limited and is used by FTSE International Limited
("FTSE") under licence. All-Share is a trade mark of FTSE.
INVESCO PERPETUAL
INVESCO PERPETUAL is part of the global AMVESCAP Group, one
of the world's largest fund managers, with over £250 billion
of assets under management at 30 September 2009. Source:
INVESCO PERPETUAL
| Funds from INVESCO PERPETUAL |
| Income Fund |
designed to be an 'all weather' fund investing mostly in
established UK companies to achieve good long-term growth |
| Managed Growth Fund |
aims to achieve growth by investing in an actively managed
selection of the 'best of best' INVESCO PERPETUAL funds |
| UK Smaller Companies Equity Fund |
looks for growth opportunities from a wide-ranging portfolio of
UK smaller companies |
Please see the document below for further fund
information.
Important information
about Baby Bond® Choice Child Trust Fund
PDF, 972KB (opens a new window)
UBS Global Asset Management
Among the world's largest asset managers, UBS Global Asset
Management has a wealth of investment management experience and
aims to provide investors with superior investment returns. UBS
Global Asset Management managed £352 billion worldwide at
30 September 2009. Source: UBS Global Asset Management
| Funds from UBS Global Asset Management |
| Global Allocation Fund (UK) |
aims to achieve long-term growth through active management of a
diversified portfolio of sharesinvests mainly in UK and
international shares and bonds |
| UK Select Fund |
aims to achieve long-term growth through active management of a
diversified portfolio of shares invests mainly in UK
shares |
Important information
about Baby Bond® Choice Child Trust Fund
PDF, 972KB (opens a new window)
If you’re not sure which funds to choose, you
should seek the help of a Financial Adviser who will help you by
considering your current financial situation, what you want for
your child and the level of risk you are comfortable with.