Q. Do you only offer stakeholder CTFs on a discretionary basis?
A. Yes, however, if you wish to make your own investment decisions, we also offer a non-stakeholder CTF.
Q. If I elect for a stakeholder CTF how will you invest the money?
A. Pilling & Co invest monies via a discretionary management facility. That is to say we decide on your behalf how to invest CTF money to provide a suitable risk and reward solution. All of our discretionary managed stakeholder CTFs will have the same approach until life-styling (see below) takes effect at age 15.
In choosing our risk/reward profile we have taken into account the guidelines set out by the government in its information to stakeholder CTF providers. This means that investment can be made into equities, both in the UK and overseas, as well as proportions of cash and bonds, both corporate and government-issued, within a single priced fund. Pilling & Co’s investment managers will decide how this investment process is to be styled, whether it be via a single fund or multiple funds. Pilling’s Investment Managers are currently allocating 100% of CTF monies to the Baillie Gifford Managed Fund.
Further details of the fund can be found at: http://www.bailliegifford.com/individual-investor/featured-funds
Q. What is life-styling?
A. Life-styling is the requirement for a stakeholder CTF to be switched into lower risk investments when the child reaches age 15. It is designed to protect the value of the fund over the last few years before the child reaches age 18.
Q. How often do you deal in the stakeholder CTF?
A. We generally deal twice a month to invest new contributions and to sweep up any cash on the account into the fund. In the event of a large number of contributions arriving shortly after investment day we may, at our discretion, add additional investment days to invest those new funds.
If we decide to switch funds or diversify into additional funds under the discretionary arrangement, then this may result in extra deals in that particular month.
Q. Will I know when deals are being carried out on my stakeholder CTF?
A. Investment decisions will be made without prior reference to you. However, full details will show on your statements and online access so you can always see what is going on with the account.
Q. Can I cancel the discretionary agreement?
A. Yes, you must give us written notice to cancel the agreement and stipulate if you wish the investments to be sold. Your CTF will automatically be transferred to a non-stakeholder CTF with Pilling & Co (which will incur different charges and investment parameters) unless you ask us to transfer it to another CTF provider. If you elect for a stakeholder CTF on our application form you are agreeing to these terms and conditions under a discretionary management agreement.