engage Child Trust Fund

Where we invest

Most experts agree that if investing for the medium term, the stock market is a good place to put money.

The engage Child Trust Fund is a stock market based Child Trust Fund that aims to achieve long term capital growth, whilst spreading the investment risk by investing in shares across a range of companies listed in the FTSE 100 index.

Please remember that as with most stock market investments the value could drop below the amount paid in. If the child were to cash in at such a time, they would get back less than has been invested.

As it is a stakeholder Child Trust Fund account, ‘lifestyling’ will automatically apply unless you tell us otherwise.

Lifestyling means that we try to protect any value that has built up in the account by starting to move your child's money into lower risk investments from their 13th birthday.

Caterpillar

Lifestyling works as follows:

The engage Investment Growth Fund is our medium to high risk fund that aims for capital growth but with a higher risk than investing in fixed interest securities and cash. It invests in shares over a spread of different companies in the FTSE 100 Index, helping to reduce – but not eliminate the overall risk to your Child’s funds.

The engage High Income Fund is our medium to low risk fund and is mainly invested in fixed interest securities and cash.

This basically means that in the later years of your child’s account, to protect the funds that have been built up, we gradually mover you child’s money into the lower risk fund.

If the account is lifestyled, shares will be bought and the fund switched as indicated in the table:

  How payments will be invested  
Age Investment Growth Fund medium/high risk High Income Fund medium/low risk Proportion of value of Growth Fund switched to Income Fund
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%

For Example

If you invested £1000 in an engage Child Trust Fund account when your child is 14, £400 will be invested in the engage High Income Fund and £600 in the engage Investment Growth Fund.