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Children's Mutual - Child Trust Funds
If you are in any doubt as to which provider, product or fund is suitable, or need any advice then please contact a suitably qualified and regulated financial adviser. Clubfinance provides an execution-only arranging service only. We do not give advice or recommendations. This enables us to rebate most of our commission on these products.
Contents
The Children's Mutual Child Trust Funds
Baby Bond® Choice (This is a non-stakeholder product)
Baby Bond® (This is a stakeholder product)
The next step - how to arrange a Child Trust Fund through Clubfinance
Please click here for important information about Child Trust Funds
The Children's Mutual Child Trust Funds
The Children's Mutual has two Child Trust Fund products:
· Baby Bond® Choice (a non-stakeholder product); and
· Baby Bond® (a stakeholder product).
Baby Bond® Choice Child Trust Fund (This is a non-stakeholder product)
Investment and charges summary
| Fund Choices | Initial charge | Annual (yearly) management charge (AMC) | Total Expense Ratio (includes AMC) |
| Insight Investment Foundation Growth Fund | 0% | 1.5% | 1.5% |
| Gartmore US Growth Fund | 5% | 1.5% | 1.72% |
| Gartmore Cautious Managed Fund | 3.5% | 1.25% | 1.44% |
| Gartmore European Selected Opportunities Fund | 5% | 1.5% | 1.70% |
| Insight Investment Evergreen Fund | 5% | 1.5% | 1.64% |
| Invesco Perpetual Income Fund | 5% | 1.5% | 1.69% |
| Invesco Perpetual UK Smaller Companies Equity Fund | 5% | 1.5% | 1.69% |
| Invesco Perpetual World Growth Portfolio | 5% | 1.5% | 1.91% |
| UBS Global Allocation Fund (UK) | 4% | 1.5% | 1.6% |
| UBS Medium Term Fixed Interest Fund | 4% | 1% | 1.47% |
| UBS UK Select Fund | 4% | 1.5% | 1.59% |
Source: http://www.thechildrensmutual.co.uk/PDF/thechildrensmutual_keyfeatures_bbc.pdf
Please see the Key Features Document to confirm relevant charges and for more details of the funds, including risk factors.
From the child's 13th birthday, unless instructed otherwise by you, "lifestyling" will be applied to reduce the amount invested in higher risk assets by 20% each year until the child is 18. Lifestyling means switching from higher risk to lower risk assets over a period of time. Existing amounts invested in the UBS Medium Term Fixed Interest Fund will count as lower risk assets for this purpose. Aside from existing amounts invested in the UBS Medium Term Fixed Interest Fund, it is likely that lower risk assets will be mainly government bonds (gilts), fixed interest money market instruments and cash deposits, and could include an OEIC fund holding such assets (including the UBS Medium Term Fixed Interest Fund). Please see the link below for further details.
Insight Investment Foundation Growth Fund
The fund aims to achieve long-term capital growth by investing in a representative sample of UK equities and for these assets to match the capital performance of the FTSE All-Share index.
Gartmore Cautious Managed Fund
The fund aims to provide a combination of income and long-term capital growth. Investment is in a diversified portfolio of equities (company shares) bonds, and other related investments. At all times the investment in equities will be limited to a maximum of 60% of the value of the fund's portfolio.
Gartmore European Selected Opportunities Fund
The fund aims to achieve a long-term return by investing in companies that have their registered office in Europe, companies that do not have their registered office in Europe but either (i) carry out a predominant proportion of their business activity in these markets or (ii) are holding companies which predominately own companies with registered offices in Europe.
Insight Investment Evergreen Fund
The fund aims to achieve a reasonable level of income, together with capital growth by investing mainly in companies listed in the UK with the balance invested internationally. The fund managers may include other investments that they consider appropriate which may include investment in transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments. Please note The Children's Mutual only offers accumulation shares in this fund. This means that any income (normally in the form of dividends) is automatically reinvested in order to increase the existing value of the OEIC shares.
Invesco Perpetual UK Smaller Companies Equity Fund
The fund aims to achieve capital growth by investing primarily in shares of smaller companies in the UK. In pursuing this objective, the fund managers may include other investments that they consider appropriate which may include investment in transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments.
Invesco Perpetual World Growth Portfolio
The fund aims to achieve capital growth from a portfolio of mainly Qualifying Funds (this means the fund invests in other collective funds). In pursuing this objective, the fund managers may include other investments that they consider appropriate which may include investment in transferable securities, money market instruments, warrants, collective investment schemes, deposits and other permitted investments.
UBS Global Allocation Fund (UK)
The fund aims to achieve long-term capital growth through active management of a diversified portfolio invested primarily in domestic and international equities and bonds.
UBS Medium Term Fixed Interest Fund
The fund aims to achieve long-term capital growth through active management of a diversified portfolio invested primarily in UK equities.
Source: http://www.thechildrensmutual.co.uk/PDF/thechildrensmutual_keyfeatures_bbc.pdf
Initial Commission
We receive no initial (up-front) commission on the CTF voucher itself.
All funds except Insight Investment Foundation Growth Fund
We receive 3% initial
commission based on the value of additional contributions (voluntary
payments). However, we will give up (sacrifice) 2%, to automatically
increase the amount invested. We will rebate an additional 0.25% by
cheque (or other payment method). However, please note that for all
commission rebated by cheque, this will be issued following the Child's
18th Birthday.
Please see our
terms of business for further
details.
Insight Investment Foundation Growth Fund
We do not receive any initial commission unless an additional lump sum contribution (voluntary payment) of £1,000 is made. If an individual voluntary payment of £1,000 or more is made, we receive 3% initial commission based on that payment. We will give up (sacrifice) 2% of our commission to automatically increase the amount invested. We will rebate an additional 0.25% by cheque. However, please note that for all commission rebated by cheque, this will be issued following the Child's 18th Birthday. Please see our terms of business for further details.
Annual ('trail') Commission
If additional monthly contributions are being made, we receive 0.25% of the value of the investment each year. This trail commission is paid on the monthly contributions together with the government voucher and additional lump sums contributed whilst monthly contributions are being made. The commission is paid on all of the fund choices available. This is paid out of, and is not in addition to the normal charges on the funds.
We will rebate 75% of the trail commission we receive by cheque (or other payment method) following the child's 18th birthday.
Please note that during the life of the product The Children's Mutual may increase or decrease the level of commission paid to Clubfinance Ltd. We will rebate 75% of any commission we receive.
Please see our terms of business for further details.
If additional monthly contributions are not being made, there is no trail commission.
Baby Bond® Stakeholder Child Trust Fund
Investment and charges summary
| Fund | Initial charge | Annual (yearly) management charge (AMC) | Total Expense Ratio (includes AMC) |
| Insight Investment Foundation Growth Fund | Nil | 1.5% | 1.5% |
This
fund aims to achieve long-term capital growth by investing in a
representative sample of UK equities aiming to match the capital
performance of the FTSE All-Share Index.
Source:
http://www.thechildrensmutual.co.uk/PDF/thechildrensmutual_keyfeatures_bbc.pdf
Please see the link below for further details.
From the child's 13th birthday, unless instructed otherwise by you, "lifestyling" will be applied to reduce the amount invested in the Insight Investment Foundation Growth Fund by 20% each year until the child is 18. Lifestyling means switching from higher risk to lower risk assets over a period of time. It is likely that such assets will be mainly government bonds (gilts), fixed interest money market instruments and cash deposits, and could include an OEIC fund holding such assets. Please see the link below for further details.
Initial Commission
We do not receive any initial commission unless an additional lump sum contribution (voluntary payment) of £1,000 is made. If an individual voluntary payment of £1,000 or more is made, we receive 3% initial commission based on that payment. We will give up (sacrifice) 2% of our commission to automatically increase the amount invested. We will rebate an additional 0.25% by cheque.
However, please note that that for all commission rebated by cheque, this will be issued following the child's 18th birthday. Please see our terms of business for further details.
Annual ('trail') Commission
If additional monthly contributions are being made, we receive 0.25% of the value of the investment each year. This trail commission is paid on the monthly contributions together with the government voucher and additional lump sums contributed whilst monthly contributions are being made. This is paid out of, and is not in addition to the normal charges on the funds.
We will rebate 75% of the trail commission we receive by cheque (or other payment method) following the child's 18th birthday. Please see our terms of business for further details.
Please note that during the life of the product The Children's Mutual may increase or decrease the level of commission paid to Clubfinance Ltd. We will rebate 75% of any commission we receive.
If additional monthly contributions are not being made, there is no trail commission.
Identification Requirements
For the purposes of opening a CTF only, the CTF voucher is sufficient evidence of identity for both the chid and the Registered Contact. However, ID checks will be required in the future when the child who owns the CTF accesses the contents of the account at age 18 or after for example.
The next step
To arrange a The Children's Mutual Child Trust Fund we need to send you by post: a commission statement, personalised illustration, application form and other important information.
Baby Bond ® Choice (non-stakeholder) - please click here to make a request.
Baby Bond (stakeholder) - please click here to make a request
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