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    • darren72
    • By darren72 16th Apr 18, 11:41 PM
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    darren72
    Transferring from CTF to Junior ISA
    • #1
    • 16th Apr 18, 11:41 PM
    Transferring from CTF to Junior ISA 16th Apr 18 at 11:41 PM
    Are there any disadvantages at all in moving from a Child Trust Fund to a Junior ISA ?

    My niece and nephew both have CTF - One with Natwest and the other with Foresters. Neither look particularly attractive, but looking at the possibility of moving them both elsewhere.

    Thanks in advance
Page 1
    • Alexland
    • By Alexland 17th Apr 18, 8:03 AM
    • 2,389 Posts
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    Alexland
    • #2
    • 17th Apr 18, 8:03 AM
    • #2
    • 17th Apr 18, 8:03 AM
    There are no particular disadvantages of switching to the Junior ISA wrapper however check the T&Cs of the old products in particular the Foresters account may be invested in an outdated 'with profits' fund for which there may be disadvantages to exiting early.
    • darren72
    • By darren72 17th Apr 18, 11:28 AM
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    darren72
    • #3
    • 17th Apr 18, 11:28 AM
    • #3
    • 17th Apr 18, 11:28 AM
    There are no particular disadvantages of switching to the Junior ISA wrapper however check the T&Cs of the old products in particular the Foresters account may be invested in an outdated 'with profits' fund for which there may be disadvantages to exiting early.
    Originally posted by Alexland
    Thank you for your reply. I didn't think there would be a disadvantage, as there is certainly more choice with JISA's.

    The one with Foresters Financial was originally with The Children's Mutual, but was taken over by them in November 2016.

    The Child Trust Fund is invested in Aberdeen Foundation Growth with an AMC of 1.5%.

    The one with Natwest is in the 'RBS Stakeholder Investment Fund ICVC' also with an AMC of 1.5%

    I can't see any mention of penalties for exiting early on either of them.
    • Alexland
    • By Alexland 17th Apr 18, 11:33 AM
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    Alexland
    • #4
    • 17th Apr 18, 11:33 AM
    • #4
    • 17th Apr 18, 11:33 AM
    I agree they both look a bit rubbish. Given the children are old enough to have CTFs then if they are likely to withdraw at 18 then, if continuing to invest, it's probably sensible to go with something reasonably balanced such as a VLS60 or VTR fund in a Vanguard Investor JISA - although they don't accept CTF transfers so you might need to convert it elsewhere first.

    Maybe the Orbis Balanced fund - they are offering a 100 incentive to transfer each CTF into their JISA if you act quickly? Orbis are not cheap but their higher risk Equity fund (probably not appropriate for the age of the children now) has outperformed the MSCI World index by around 4% per annum since starting in 1990 but they have had a rough patch in the past couple of months. Also any transfers or contributions to the JISA in the first 12 months will be in fee-free units until the child is 18. You can manage both JISA accounts from the same adult login.

    Alex
    Last edited by Alexland; 17-04-2018 at 11:51 AM.
    • darren72
    • By darren72 17th Apr 18, 11:36 AM
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    darren72
    • #5
    • 17th Apr 18, 11:36 AM
    • #5
    • 17th Apr 18, 11:36 AM
    I agree they both look a bit rubbish. Given the children are old enough to have CTFs then if they are likely to withdraw at 18 then, if continuing to invest, it's probably sensible to go with something reasonably balanced such as a VLS60 or VTR fund in a Vanguard Investor JISA.
    Originally posted by Alexland
    Thank you. For now they won't be contributing much (if any) to them, so will purely be for the benefit of a better investment. Both are very low in value (around 500).

    Do you know of any JISA's that would allow investments such as what you suggest with a low/no fee ?

    Thanks again
    • Alexland
    • By Alexland 17th Apr 18, 11:38 AM
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    Alexland
    • #6
    • 17th Apr 18, 11:38 AM
    • #6
    • 17th Apr 18, 11:38 AM
    Sorry just remembered Vanguard don't accept CTF transfers so updated my post above.
    • darren72
    • By darren72 17th Apr 18, 11:50 AM
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    darren72
    • #7
    • 17th Apr 18, 11:50 AM
    • #7
    • 17th Apr 18, 11:50 AM
    Thank you so much. Will take a look at Orbis.
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