AIC publishes list of funds that may be suitable for children’s investments

25th July 2013

In the absence of a royal nest egg, and given the varying budgets of new parents, the Association of Investment Companies (AIC) has published information on children’s investment schemes and Junior ISAs, including scheme charges and minimum monthly and lump sum investments (listed below.

This information is available on the AIC’s website, www.theaic.uk.

How to get started

The trade body says you can invest on behalf of a child through any investment company saving and investment scheme – some management companies have plans specifically for children.  You can choose to hold company shares either in your own name and designate on the application form that you are holding them on behalf of a child (by adding the child’s name or initials to the form) or you can hold company shares in a bare trust for the benefit of the child.

Holding company shares in a designated account means that the money remains yours but is designated for the child. You have the flexibility to decide when to hand the money over to the child, but you will have to account for any tax arising. By contrast, holding shares in a bare trust means that the bare trustee’s name is on the share certificate as the legal owner and the child is a beneficial owner. The child will have access to the proceeds of the investment on reaching the age of 18 when the shares can be registered in their name.

Children’s savings schemes

Manager Minimum monthly regular savings Minimum lump sum Initial admin/annual charges Other charges Other features
Aberdeen Asset Managers £30 £150 Initial/Admin: Nil. Annual: Nil. Purchase: Nil. Sale: £10. Transfer Out: £30. Switch: £10. Designated or bare trust option. Share exchange facility.   Statements issued twice a year.
Alliance Trust Savings £50 £50 Initial/Admin: Nil. Annual: Nil. Purchase: £1.50 – £12.50 (online) £40 (phone & post).   Sale: £6.25 – £12.50 (online) £32.50 (phone & post). Transfer Out: £15.   Switch: N/a. Alliance Trust, all other investment companies, UK listed   shares, fixed interest securities, OEICs, unit trusts, ETFs plus cash deposit   facility. Share Exchange. Deal online, by telephone or post. Statements   issued quarterly.
Baillie Gifford Savings Management £25 £100 Initial/Admin: Nil. Annual: Nil. Purchase: Nil. Sale: £22. Transfer Out: N/a. Switch: First   free in any 12 month period, £22 thereafter. Designated or bare trust option. Annual & Interim   reports. Statements issued twice a year.
Dunedin (through Aberdeen) £30 £150 Initial/Admin: Nil. Annual: Nil. Purchase: Nil. Sale: £10. Transfer Out: £30. Switch: £10. Designated or bare trust option. Share exchange facility.   Statements issued twice a year.
F&C Management £25 £250 Initial/Admin: Nil. Annual: £25. Purchase: 0.2%. Sale: 0.2%. Transfer Out: £12. Switch:   Normal sale/purchase charges. (CTF – 2 free switches per annum, £25   thereafter). Designated or bare trust option. Statements issued twice a   year. Online account management. Child Trust Fund available. Visit   www.fandc.com for further details on CTF.
Graphite Capital Management (through F&C) £25 £250 Initial/Admin: Nil. Annual: Nil. Purchase: 0.2%. Sale: 0.2%. Transfer Out: £12. Switch:   Normal sale/purchase charges. (CTF – 2 free switches per annum, £25   thereafter). Designated or bare trust option. Statements issued twice a   year. Online account management. Child Trust Fund available. Visit   www.fandc.com for further details on CTF.
J.P. Morgan Asset Management £50 £500 (top up £100) Initial/Admin: Nil. Annual: Nil. Purchase: £10. Sale: £10. Transfer Out: Nil. Switch: Nil. Designated account. Investors can invest directly in Elect   Managed Cash. Statements issued twice a year.
Martin Currie (through Alliance Trust Savings) £50 £50 Initial/Admin: Nil. Annual: Nil. Purchase: £1.50 – £12.50 (online) £40 (phone & post).   Sale: £6.25 – 12.50 (online) £32.50 (phone & post). Transfer Out: £15.   Switch: N/a. Alliance Trust, all other investment companies, UK listed   shares, fixed interest securities, OEICs, unit trusts, ETFs plus cash deposit   facility. Share Exchange. Deal online, by telephone or post. Statements   issued quarterly.
Scottish Investment Trust plc (Plan Manager: SIT Savings) £25 £250 Initial/Admin: Nil. Annual: Nil. Purchase: Nil. Sale: £11.95. Transfer Out: £30. Switch:   N/a. Designated or bare trust option. Share exchange facility.   Dividend reinvestment. Annual & Interim reports. Statements issued twice   a year. Application forms are available on the website: www.sit.co.uk.
Witan Investment Services £50 £250 Initial/Admin: Nil. Annual: £30. Purchase: Nil. Sale: Nil. Transfer Out: N/a. Switch: N/a. Statements issued twice a year. Bare Trust available.   Child Trust Funds and Junior ISAs available. Visit www.jumpsavings.com for   further details.

Junior ISAs

Manager or company Initial admin charges Annual charges Other charges Other features
Alliance Trust Savings Nil £10 per quarter Purchase: £1.50 – £12.50 (online). £40 (phone & post).   Sale: £6.25 – £12.50 (online). £32.50 (phone & post). Transfer Out: £50.   Switch: N/a. Alliance Trust, all other investment trust companies, UK,   AIM and Plus shares, fixed interest, OEICs, unit trusts, ETCs, cash deposit,   in specie and share exchange. Statements issued twice a year.
F&C Management Nil £25 Purchase: £8 (online). £12 (phone & post). Sale: £8   (online). £12 (phone & post). Transfer Out: £50. Switch: N/a. Online service and online JISA application: www.fandc.com.   Statements issued twice a year.
FIL Investments International No initial charge Nil Purchase: Nil. Sale: Nil. Transfer Out: N/a. Switch: Nil. Statements issued twice a year.
J.P. Morgan Asset Management Nil Nil Purchase: Nil. Sale: Nil. Transfer Out: N/a. Switch: N/a. Investors cannot invest directly in Elect Managed Cash.   Statements issued twice a year. Annual & Interim reports.
Witan Investment Services Nil £30 Purchase: Nil. Sale: Nil. Transfer Out: N/a. Switch: N/a. Statements issued twice a year. Dividend reinvested.   Annual & Interim reports.

 

 

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