Child Trust Fund - ETF Options

g_senthil_mm

Hi All,

I have just received my 250£ Child Trust Fund Voucher from the government.

I don't have plans to invest any additional amount while opening the Child Trust Fund account. I.e I can only use the 250£ provided by the government.

I am keen to invest this in a emerging markets fund/emerging markets ETF. Who would be the cheapest broker to open the account.

Cheers
Senthil

cloud_dog

Foreign & Colonial offer a CTF with the ability to select form 15 funds; one of which is the 'Pacific Asset Trust'........

Aim

To achieve long term capital growth through investment in selected companies in the Asia Pacific region and the Indian sub-continent, but excluding Japan and Australasia.

NOut sure about dealing charges (if any) and, I haven't researched all the other providers but you are likely to be limited to what UTs / OIECs they choose to offer (most stick pretty much to the UK).

The other option is a self select CTF (Selftrde) and pay £12.50 to deal.

g_senthil_mm

Thanks for the response. With regards to Selftrade, is there an annual managment fee charged by Selftrade. I get conflicting informations with regards to the annual management fee.

Aegis

g_senthil_mm wrote: »

Thanks for the response. With regards to Selftrade, is there an annual managment fee charged by Selftrade. I get conflicting informations with regards to the annual management fee.

There wasn't but there is now. For small investments like a CTF, the annual charge would eat up your investment very quickly, so if they charge the usual amount you should avoid this one. However, some companies will do a specific CTF account with lower charges, which might help.

cloud_dog

Aegis wrote: »

There wasn't but there is now. For small investments like a CTF, the annual charge would eat up your investment very quickly, so if they charge the usual amount you should avoid this one. However, some companies will do a specific CTF account with lower charges, which might help.

Oh goody....... I've always wanted to know something Aegis didn't know :j:j:j:j

There isn't an AMC on the CTF account with Selftrade (there is for other / ordinary / ISA dealing accounts).

Edit: only know this because thats where our CTF is.

Gymgenius

cloud_dog wrote: »

Foreign & Colonial offer a CTF with the ability to select form 15 funds; one of which is the 'Pacific Asset Trust'........

Aim

To achieve long term capital growth through investment in selected companies in the Asia Pacific region and the Indian sub-continent, but excluding Japan and Australasia.

NOut sure about dealing charges (if any) and, I haven't researched all the other providers but you are likely to be limited to what UTs / OIECs they choose to offer (most stick pretty much to the UK).

The other option is a self select CTF (Selftrde) and pay £12.50 to deal.

I'm in the process of transferring my children's CTFs to F&C and am also targetting the Pacific Asset trust, and two others.

I started out with the intention of not adding any more funds into their CTFs but I am now going to 'top-up' each of their transfer balances so that they each have £100 in each of the three funds I've selected.

Gymgenius

Looking at F&C's website on their Shares CTF, there appear to be no charges on it whatsoever:

Child Trust Fund shares account

Shares accounts invest in stocks and shares. Given your CTF account is going to last for up to 18 years, this type of account offers considerable flexibility and a wide choice of investment options, including our range of award-winning investment trusts.
Minimum lump sum £100 per trust
No initial charge
Running costs paid from the trust’s assets, not from your investment
Choice of UK and international equity investments

Child Trust Fund shares accounts are suitable if you’re happy to invest in the stock market, which has historically provided better returns than leaving your money in a cash savings account.
However, you should bear in mind that past performance is no guide to future performance, and stock market investments can fall as well as rise, so you may not get back the amount you originally invested.

Aegis

cloud_dog wrote: »

Oh goody....... I've always wanted to know something Aegis didn't know :j:j:j:j

There isn't an AMC on the CTF account with Selftrade (there is for other / ordinary / ISA dealing accounts).

Edit: only know this because thats where our CTF is.

Flattered at the way that one was expressed

I've never dealt with a CTF in my life, hence having no knowledge of provider specifics at all. I'll make a mental note though...

cloud_dog

Aegis wrote: »

Flattered at the way that one was expressed

I've never dealt with a CTF in my life, hence having no knowledge of provider specifics at all. I'll make a mental note though...

it was an 'homage' to your knowledge