A self-select Child Trust Fund

from Reyker Securities plc

The 4thekids Child Trust Fund (“CTF”) is “self-select”, allowing parents to select the investments that are held within the CTF and to buy and sell investments as and when they wish. Alternatively, parents may appoint a stockbroker or other independent financial adviser to manage their CTF investments for them. There is an extensive range of investments that are CTF qualifying and Reyker will allow parents to invest in UK, European and US equities, in a range of loan stocks, gilts, unit trusts, investment trusts, OEICs, and of course cash deposits.

The 4thekids CTF is really aimed at families who will be able to subscribe additional cash to their children’s CTFs (the annual subscription allowance is £1,200), enabling them to establish a balanced and diversified portfolio over the years.

Reyker will charge just 1% per annum for the provision of this CTF plus a Stock Settlement Levy of £2.50 per deal. In addition buying and selling securities will incur dealing commissions and stamp duty at 0.5% on certain purchases. Details of Reyker’s execution-only share dealing service can be found at www.reyker.co.uk

The 4thekids self-select CTF is a Non-Stakeholder CTF.

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There are two types of CTF, Stakeholder and Non-Stakeholder.

A Stakeholder CTF is one that satisfies a number of conditions laid down by the Government (see below). The idea is that Stakeholder accounts will appeal to those parents who are new to, and perhaps a bit nervous about investing in equities or “stocks and shares”.

A Stakeholder CTF must have exposure to stocks and shares and is invested in a number of companies in order to reduce the risk. It must also be “life-styled”. This means that when your child reaches the age of thirteen, money in the CTF must be progressively moved to lower risk investments or assets. CTF Providers will consider how well shares are performing to decide how much to move over into safer assets and how quickly. Life-styling is intended to protect your CTF from stock market losses as your child’s eighteenth birthday approaches.

Stakeholder Providers must accept a minimum contribution of £10 into a stakeholder account and may not charge more than 1.5% per annum for the provision of the CTF.

Non-Stakeholder CTF Providers are not bound by the above conditions and as there is no cap on fees, may charge more than 1.5% per annum.

A Provider who does not offer a Stakeholder CTF must provide access to a third-party Stakeholder and our choice is the Stakeholder CTF provided by Children’s Mutual.

Details of this Stakeholder can be found at www.thechildrensmutual.co.uk