information about our child trust fund account for customers transferring to Engage Mutual
Our stock market based child trust fund is a stakeholder account, which means it meets certain requirements set for stakeholder accounts by the government. Non-stakeholder child trust funds are also available, but they do not have to meet the requirements set for stakeholder accounts. For a comparison of the features of stakeholder and non-stakeholder child trust fund account please see the key features.
stakeholder child trust fund accounts
Stakeholder child trust funds invest your child's money in company shares. To make sure their money is exposed to less risk, it isn’t invested in just one company. By investing in a number of different companies, the risk is spread and therefore reduced. The government implemented this rule to ensure the money invested in a child trust fund is as safe as it can be when invested in shares.
Please bear in mind that as with most stock market based investments the value can fall as well as rise and your child may get back less than is invested for them.
Although our CTF account is a Stakeholder account which meets certain standards, this does not mean that the investment is suitable for your child or that its performance is guaranteed.
lifestyling explained
The money in your child's account is invested using 'lifestyling'. This means that the money is gradually moved from a medium/high risk fund into a medium/low risk fund. A lifestyled approach is taken unless you tell us otherwise.
If the account is lifestyled, the payments will be invested and the fund switched as indicated in the table below:
| Age |
medium / high risk fund |
Medium / low risk fund |
Proportion of value of fund switched to 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%
|
For example: If you invest £1000 when your child is 14, £600 will be invested in a medium/high risk fund and £400 in a medium/low risk Fund.
ready to transfer to our child trust fund?
Providing you are the registered contact or revenue allocated account correspondent you can transfer an existing CTF account to Engage Mutual. Simply follow the step by step process below and you can leave everything else to us.
1. Download and read the Key Features, simplified prospectus and the terms and conditions.
2. Download, print and complete the CTF transfer form
3. Send the completed CTF transfer form to:
Engage Mutual Assurance
FREEPOST NEA 4568
Harrogate
HG2 7BR
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