Foresters Friendly Society to launch Government-backed Child Trust Fund

6 January 2005

Mutual organisation, Foresters Friendly Society, has announced plans for its own Child Trust Fund (CTF) policy when the scheme is launched next year.

From January, vouchers for £250 will be sent to parents of all children born after August 31 2002 as part of the 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.

Mr Rothery said: "A CTF is a long term savings plan that cannot be cashed in by the child until their 18th birthday. It has a capital guarantee so investors know the money being put aside on the child’s behalf is totally safe."

Mr Rothery said: "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 Societyhas also been designed to offer a simple and transparent charging structure, a single 1.5 per cent annual charge.
Mr Rothery added: "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."

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.

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