engage press releases

April 2007


Northern Irish parents most generous CTF contributors

Parents in Northern Ireland Invest Most into engage Mutual CTF
With the second anniversary of the Child Trust Fund (CTF) just around the corner, engage Mutual, one of the UK's largest CTF providers, can reveal that Northern Irish parents are by far the most generous when it comes to topping up their child's engage CTF.

In stark contrast to regional salaries which put Northern Ireland salaries bottom of the UK league1 , engage has found that parents in Northern Ireland topped up their child's CTF by 50 per cent more than Welsh parents, 45 per cent more than English parents and 42 per cent more than Scottish parents2. Industry figures from PIMA, the leading trade body for CTFs and tax incentivised savings, suggest the average amount saved into a CTF is just over £20 per month3

Research also reveals that 31 per cent of parents with an engage CTF are topping up their child's CTF on a monthly basis, compared with an industry average of 22.8 per cent4.

Other interesting findings from engage:
  • engage was one of the first CTF providers to introduce online debit card payments into Child Trust Funds. Debit card top-ups account for 18 per cent of all top-up transactions, a proportion which is increasing each month.
  • Chloe and Jack were the most popular names of CTF recipients in 2006 with engage Mutual customers

Karl Elliott, 3GB Spokesperson for engage Mutual Assurance, said:

"On the second birthday of the Child Trust Fund, we are delighted to see that engage Mutual's Northern Irish parents are leading the way when it comes to topping up their child's Child Trust Fund despite lower average earnings than other UK regions. Our message is simple - by contributing little and often to a CTF, parents and other relatives can give their children a financial head-start when they reach 18. We are delighted to see that engage customers are taking our advice on board. Almost a third of our customers are topping up their child's CTF regularly, compared to an industry average of less than one in four."

engage Mutual Assurance CTF Product Information
  • The stakeholder CTF is an equity product that initially invests in the engage Investment Growth Fund
  • The CTF has built in life styling - once the child reaches age 13, the money is gradually moved from the engage Investment Growth Fund into less speculative assets (engage High Income Fund - by 20% each year) to lock-in gains as the account reaches maturity. At age 17, 100% of the money is invested in the engage High Income Fund, although life styling can be switched on or off at anytime and any money transferred into the engage High Income Fund can be transferred back in to the engage Investment Growth Fund at any time.
  • Please note this is a stockmarket-linked investment and its value can fall as well as rise. The child may get back less than has been paid in.
  • The annual charge is 1.5%
  • The minimum contribution is £5

Footnotes:
  1. ONS average salaries 2006 -Northern Ireland: £16,787; Wales: £17,397; Scotland: £18,616; England: £19,522
  2. engage internal figures to January 2007
  3. PIMA figures, January 2007
  4. PIMA figures, December 2007

engage Mutual Assurance can be contacted on 0800 169 4321† or by visiting www.engagemutual.com

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.

Media Contact

Jo Winser
FD Consumer Dynamics

020 7269 7236

jo.winser@fd.com

Kate Maughan-Brown
engage Mutual Assurance

01423 855 245

kate.maughan-brown@engagemutual.com

NOTES TO EDITORS
  1. If using this article on a website, please link to www.engagemutual.com using the following hyperlink text :
    <a href=http://www.engagemutual.com engageMutual Assurance  - meeting the changing needs of today’s modern families.
  2. engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and its wholly-owned subsidiary engage Mutual Funds Limited (EMFL).
  3. engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores.
  4. engage is proud to partner a charity which shares our consideration for balancing risk and reward - Smart Risk Foundation UK. It helps youngsters across the UK to identify the risks in their everyday lives in the smartest way, so that they can enjoy life to the fullest. Smart Risk Foundation's registered charity number is 1096081, www.smartrisk.org.uk.
  5. engage Mutual Assurance is headline sponsor of the engage International Open 2007 and the engage Ladies World Matchplay 2007, both part of the World Bowls Tour
  6. engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
  7. Established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA).
  8. Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234


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