Top Child Trust Funds Article Discussion Area

MrEnglish wrote: »

Thanks cloud dog.

Im looking into it now.

So could I invest the CTFs in silver ETFs?

Yes (and no). S&S CTFs operate with simialr rules to ISA's, for example you cannot buy shares only listed on the AIM market.

You will find that some ETF/ETCs can be bought within a S&S ISA/CTF and some cannot, it very much depends on how the fund is structured.

But, I have just tried a dummy buy for PHAU which is allowed.

I'm assuming you are ok wth ETF's and are aware of the underlying consideration around how they are structred, priced, what / how they track, etc?

There's also a Pysical silver (PHSP) priced in GBP, and also a physical precious metals basket (gold, silver, platinum, palladium).

I've always been a big fan of Central Fund of Canada myself (approx 50/50 gold silver) Canadian fund holding physical, although they can (do) trade at a premuim to the NAV. And, you do have GBP / C$ exchange considerations.

EDIT: Not trying to sell Selftrade but their usual annual management charge is not applicable to CTFs.

MrEnglish wrote: »

Thank you very much again.

http://www.centralfund.com/?



At the moment I am thinking about the Physical silver (PHSP) priced in GBP that you told me about. I am going to get my sons 250 out of Britannia and into this one ASAP. Also as soon as our new daughters CTF certificate comes through I want to put that in as well.

I just want to be 100% clear on all the charges first. Its not easy finding the information. Any links appreciated.

You need to seperate out the possible charges.

The charge (AMC) for the investment fund (SLV or PHSP) will be levied by the fund administrator and will always be charged irrespective of who you hold the invest via.

Your borker may also make an AMC to provide you with an account to run your investments from within.

For SelfTrade, specifically, they charge an AMC of £35+VAT to run dealing and S&S ISA account but this is not levied on S&S CTF accounts. So this charge is over and above any charges levied on the underlying investment. Things are different for funds as rebates are involved but I'm not commenting on that aspect.

To summarise for a Selftrade CTF investing in ETF/ETCs:

* ETF/Cs will always have a AMC although ususally fairly small
* No Selftrade AMC on CTF S&S account
* Dealing charge of £12.50 per trade
* Stamp duty not applicable on ETF/Cs

Follow the below link...

http://www.selftrade.co.uk/services/children/child-trust-fund.php

MrEnglish wrote: »

So now I want to transfer it to that Silver ETF.

Any one able to tell me how to do this?

Mr English, I can only hope you are more adept at researching and finding investment opportunities than admin.

You will need to transfer the CTF from the current provider to SelfTrade. SelfTrade may require you to 'open' and account with them (see previous post/link) but in order to transfer the CTF in to SelfTrade google "selftrade CTF F84"

The first result will link to their CTF transfer form (PDF), which you can download/print and complete.

Assuming the CTF is currently in cash, your new SelfTrade account will be opened with the cash transfer. From there you can simply find the investment and buy it.

You may wish to contact Selftrade just to confirm what action needs to be compelted first etc, i.e. do you need to complete an F82 application form/pack as well as an F84. alternatively I think you can request a full application pack by post and I would hope all required instructions/forms would be in there.

Hi,

I'm concerned that I could put a decent amount of money into a CTF and then the child could turn out to be a lunatic who blows it all on a car or something else frivolous.

Is it possible to set up the CTF so that a parent is has to sign something when a withdrawal is made?

Surely that would be a simple way of helping ensure the money goes towards something that both parent and child are agreed upon?