Where We Invest
Most experts agree that if investing for the medium to long term, the stock market is a good place to put money.
The engage Child Trust Fund (CTF) is a stock market based Child Trust Fund account 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.
Lifestyling Works As Follows:
- When your child reaches 13 the money in the Child Trust Fund account is gradually moved from our medium to high risk fund the engage Investment Growth Fund to our medium to low risk fund, the engage High Income Fund.
- By the age of 17 the money will be completely switched from the engage Investment Growth Fund to the engage High Income Fund.
This basically means that in the later years of your child’s Child Trust Fund account the funds that have been built up will be gradually moved into our lower risk fund.
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.
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 invest £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.
- apply online
- request a pack