engage Child Trust Fund

Where we invest

The engage Stakeholder Child Trust Fund account is invested in stocks and shares. The aim is to achieve long term capital growth whilst helping to spread the risk by investing in a range of companies. We invest in the shares of a range of companies listed in the FTSE 100.

Please remember that as with most stock market investments the value could drop below the amount paid in.

Lifestyling

This is a benefit of a stakeholder Child Trust Fund, automatically at 13 unless you state otherwise we will start to move the investment from shares to our lower risk fund. This will happen over the years until the whole account is completely within the lower risk investment fund. This will mean your child’s investment will be exposed to lower risk investment.

Caterpillar

The two investment funds

We have two specific funds to our Child Trust Fund; engage Investment Growth Fund and engage High Income Fund.

The engage investment Growth Fund is our medium to high risk fund that aims for capital growth by investing in shares of a spread of different companies in the FTSE 100 Index.

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

Below is a table to show how ‘lifestyling’ will affect how shares in our funds will be bought and how switching will take place.

  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. Once a contribution has been made to a Child Trust Fund it belongs to the child and will remain in the account until the child reaches 18.