|
|
Engage CTF
Engage Mutual Assurance is a leading CTF provider in the UK and manages over 100,000 accounts. The company has been a provider since the launch of the CTF in 2005 and provides the Child Trust Funds for Alliance & Leicester, Yorkshire Building Society and several other leading names. Family Investments gives you a £25 gift voucher when you set up a Direct Debit payment system.
The Family Investments CTF is a stakeholder account where the annual management charges are capped at 1.5% of the account value. Accounts, by default, automatically apply for “lifestyling” i.e. funds are moved into lower risk investment from the child’s 13th birthday onwards. However, it is possible to ask the company in advance to not do this.
Under the “lifestyling” scheme, your child’s funds are initially placed in the Engage Investment Growth Fund (a medium to high risk fund). This fund invests in shares of companies in the FTSE 100, thereby reducing but not completely eliminating the risk factor. This keeps alive the chances of high capital gains. When the child reaches the age of 13, funds are gradually moved to the Engage High Income Fund, a lower risk fund. By the age of 17 all the money is completely transferred to the High Income Fund. The typical investment plan followed is given in the table below:
| Age |
How payments will be invested |
Proportion of value of Growth Fund switched to Income Fund |
| Investment Growth Fund (Medium/High Risk) |
High Income Fund (Medium/Low Risk) |
| 0-12 |
100% |
0% |
0% |
| 13 |
80% |
20% |
20% |
| 14 |
60% |
40% |
25% |
| 15 |
40% |
60% |
33% |
| 16 |
20% |
80% |
50% |
| 17 |
0% |
100% |
100% |
|
|
