Child Trust Fund and Junior ISA- Aberdeen UK all share tracker

Zebra76

Looking for a bit of advice.. My eldest is almost 15, has a CTF (since 2010) which was auto transferred from Children’s Mutual to Forester Life in 2017. He has around £2600 (initial investment was £950 in 2010).

Other child 13 has a junior ISA with them, opened in 2012 with £1000 and now at £1900. Both of these Forester Life accounts are Aberdeen UK All share tracker funds. I only discovered recently that they weren’t actually cash CTF/ISA! 

My question is, am I better converting the CTF into a junior ISA so that it auto converts to an adult ISA at 18 rather than just ending, and would it be wiser to change both of these into cash ISA’s due to the economic climate? I’d hate for them to lose a lot of a value, though appreciate they could lose out if I convert to cash. Or, is it worth moving them to a new provider altogether? 

We’re not savvy when it comes to investments so any advice would be much appreciated! Thanks 

masonic

It sort of depends when the money will be used. Perhaps for the eldest it makes sense to move to cash. Investing in a UK All share tracker, while not having any investments listed beyond the UK market will not have been great for returns, although still superior to cash.

I can't think of a good reason not to transfer to a Junior ISA. It is a more competitive market and on the investment side, a couple of providers offer S&S JISAs free of platform fees while giving you a very wide choice of investments. There is some discussion about transferring here: https://www.moneysavingexpert.com/savings/child-trust-fund-vouchers/#jisa

Zebra76

Really appreciate your advice, thanks so much!