A CTF is a savings and investment account created by the government for children to encourage saving. The government sends a savings voucher for a minimum value of £250 to the registered contact for every child born after the 31st August 2002. Additional contributions can be made each year of up to £1200 by friends and relatives.

Pilling & Co are aware that many of you may want to invest in a similar way for your other children who do not qualify for a CTF. This is why we have launched the “Shadow Stakeholder CTF “

The “Shadow Stakeholder CTF” will, as much as possible, be identical to the real stakeholder CTF in terms of charges and structure but does not attract the same taxation regime. It will be invested in the SG Balanced Managed Fund (details available in our CTF brochure) at the special terms agreed with them for our normal stakeholder CTFs.

You are not restricted by the amounts you can invest in the “Shadow Stakeholder CTF“ or by the other restrictions associated with a CTF as it is not a government accredited product.

However, you should be aware that if the income generated from the investment in the “Shadow Stakeholder CTF” exceeds £100 per annum the whole income would be taxed on the parent who acts as the bare trustee (holder of investment on child’s behalf).

Investments will be held in our nominee company, an agreement for which is enclosed and should be completed by the person with parental responsibility and returned together with the application form and a cheque payable to Pilling & Co.

Investment into the SG Balanced Managed Fund will only be made on certain days during the month to mirror with the investment of the CTF vouchers. You will receive a contract note once the investment has been made.

We fully comply with the FSA requirement to make available a “Simplified Prospectus” or “Key Features Document” where required for each of the packaged products we recommend you buy or sell. These documents are marketing tools containing important information about the fund and we recommend you read these before buying, selling or switching investments.

If you require any further information or have any questions, please do not hesitate to ring us on 0161 819 4850 where there is always somebody who will be pleased to help you.

Shadow Stakeholder CTF Charges at a Glance:

• No commission is charged on purchases in the stakeholder CTF as we are paid commission by the fund managers.
   

• Sales are charged at 1.65% on the first £10,000 and 0.5% thereafter.
   

• The Annual Fee is 1.5% of the value of the fund which is charged by the fund managers. A percentage of this fee is rebated to Pilling & Co.