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03 December 2009

Investment Companies: A Christmas present that could last a lifetime

AIC publishes details of Children’s Saving Schemes and CTFs

Christmas is just around the corner, and as parents and relatives look for inspiration, they might want to consider including a gift which will last years after the festive period is over (alongside the usual, more instantly gratifying presents and treats). Statistics from the Association of Investment Companies (AIC) show that a lump sum investment of £100 in the average investment company over 21 years would be worth £556, which most ‘twenty somethings’ would find extremely useful.  The same amount (£100) invested once each year over 21 years would be worth £4,967, illustrating how even relatively small sums of money tucked away can add up over time.

The Association of Investment Companies (AIC) has published a list of children’s savings schemes and Child Trust Funds (CTFs) from member investment companies and their managers, including minimum contributions and charges (see page 2). For a saving for children factsheet and for details on investment company children’s savings schemes, investors can call 0800 085 8520 or visit the AIC website (www.theaic.co.uk).

Annabel Brodie-Smith, Communications Director, AIC said: “Of course parents want to make sure their children have the perfect Christmas full of toys and presents they have eagerly been waiting for.  But for parents looking to also take a more long-term view, an investment company has the potential to make a real difference to your child’s financial future.  The figures illustrate that small investments add up over the longer-term, and can be a useful way of putting cash received from relatives and friends to good use.

“Any investment company can be used for investing for a child via a bare trust or designated account and there are a wide range of investment companies available that cover a variety of sectors, countries and risk profiles.  However, there are a number of designated children’s savings schemes and Child Trust Funds which are a convenient and cost effective way to invest on behalf of a child, with minimum regular savings starting at £25 per month or £50 lump sum.” 

AIC Member investment company children’s savings schemes* and CTFs
(Any investment company can be used to save for children via a bare trust/designated account)

Management Group	Name of scheme/ Phone Number/ Website	Investment companies available through scheme	Minimum Monthly Contributions	Minimum lump sum contributions	Charges
Aberdeen Asset Manager	Aberdeen’s Investment Plan For Children 0500 00 00 40  www.invtrusts.co.uk	Aberdeen All Asia Aberdeen Asia Income Aberdeen Asian Smaller Companies Aberdeen Development Capital Aberdeen New Dawn Aberdeen New Thai Dunedin Income Growth Dunedin Smaller Companies Edinburgh Dragon Edinburgh US Tracker New India Murray Income Trust Murray International Shires Income Shires Smaller Companies	£30	£150	Charges: Initial: Nil                 Annual: Nil Adviser’s Commission: Investors can agree up to 3% be deducted from investment to pay adviser
Alliance Trust Savings	First Steps 08000 326 323 www.alliancetrust.co.uk	Alliance Trust Self Select option Access to around 4,000 investments	£50	£50	Charges: Initial: Nil                 Annual: Nil Adviser’s Commission: N/A
Baillie Gifford	The Baillie Gifford Children’s Savings Plan 0800 027 0133 www.bgchildsavings.com	Baillie Gifford Japan Baillie Gifford Shin Nippon Edinburgh Worldwide Pacific Horizon Mid Wynd International Monks Scottish Mortgage Scottish American	£30	£250	Charges: Initial: Nil                 Annual: Nil Adviser’s Commission: Investors can agree up to 3% be deducted from investment to pay adviser
F&C Asset Management	The F&C Children’s Investment Plan 0800 136 420 www.fandc.com                               F&C Child Trust Fund 0800 136 420	Access to 12 closed-end investments including generalist, specialist and alternative investments; British Assets European Assets Foreign & Colonial Foreign & Colonial Eurotrust F&C Capital & Income F&C Global Smaller Companies F&C Private Equity B F&C UK Select F&C US Smaller Companies Investors Capital A Investors Capital B Pacific Assets Trust Available either as a shares account or stakeholder account.  Shares account – access to 16 investment trusts covering global, UK European and Asian Equities through to specialist areas, including Foreign & Colonial Investment Trust and British Assets Trust.  Stakeholder account – access to FTSE All-Share Tracker Fund only	£25                                     Shares Account - £25 Stakeholder Account - £10	£250                                     Shares Account - £100 Stakeholder Account - £10	Charges: Initial: Nil                 Annual: Nil Adviser’s Commission: Investors can agree up to 3% be deducted from investment to pay adviser – Nil for Child Trust Fund                     Shares Account – Initial Charge Nil Annual Charge Nil Stamp duty – 0.5% on purchases, nil for sales** Bid/Offer spread applies (covers Trust’s fund management and operating expenses) Stakeholder Account – Initial Charge Nil Annual charge capped at 1.5%
JPMorgan Asset Management	The JPMorgan Share Plan 0800 20 40 20 www.jpmorganinvestmenttrusts.co.uk	The full range of trusts are available – all 23 investment trusts from the Far East and Emerging Markets sectors through to UK Growth and Global Growth sectors. To see full range please use this link	£50	£500 -  further top ups can start from £100	Charges: Initial: Nil                 Annual: Nil Adviser’s Commission: Investors can agree up to 3% be deducted from investment to pay adviser
Witan Investment Services	Jump Savings Plan or Jump CTF 0800 0828180 www.jumpsavings.com	Witan Investment Trust	£25	£100	Savings Plan Charges: Initial: Nil                 Annual: Nil Adviser’s Commission: Investors can agree up to 3% be deducted from investment to pay adviser CTF No dealing fees £10 set up fee 1% per annum annual management fee
SIT Savings Ltd	STOCKPLAN: A Flying Start 0800 42 44 22 www.sit.co.uk	The Scottish Investment Trust PLC	£25	£250	Charges: Initial: Nil                 Annual: Nil Adviser’s Commission: N/A
SVM Asset Management	SVM Saving Scheme for Children 0800 0199 440 www.svmonline.co.uk	SVM UK Active Fund plc	£25	£200	Charges: Initial: Nil                 Annual: Nil Adviser’s Commission: Investors can agree up to 3% be deducted from investment to pay adviser.  0.5% trail

*Stamp duty of 0.5% also applies on all purchases of investment trusts

 

For more information on member investment companies or for a copy of the AIC factsheet on investing for children go to www.theaic.co.uk or call 0800 085 8520

- Ends -

Notes to Editors

1. Performance figures to 31 October 2009 and is mid market share price with net income reinvested and a 3.5% deduction for charges, stamp duty and market spread. Source: Produced by AIC using Morningstar.
2. The Association of Investment Companies was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed ended investment companies, incorporating investment trusts and other closed ended investment companies and VCTs.  The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help Members add value for shareholders over the longer term. The AIC has 350 members and the industry has total assets of approximately £82.1 billion.

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