Savings plan for children

18/09/2000

They don't know it, not yet, but the next generation of young adults is likely to be a lot better off, much sooner than the current one.  This is just one of the conclusions we can draw from a major research study investigating attitudes to saving for children.  The study, commissioned by Jump, the savings plan for children shows that more and more parents are saving over the longer-term, with a view to giving their children a better start in adult life - with a significant 88% considering or investing in investment funds.

With some 35% of respondents saving to present their offspring with a lump sum on their 18th birthday - 31% on their 21st - it would appear a growing band of parents are realising the advantages of saving over the longer-term, many from the day their children were born.  But they're not the only ones.  More and more grandparents are planning for their grandchildren’s future too. Of those interviewed for the survey, there was a 50/50 split between parents and grandparents. However, whereas parents tend to favour regular contributions, (70% of 25-34 year olds and 64% of 35-44 year olds) grandparents tend to invest lump sums, (over 60% of those aged 65 and above).

With Personal Finance now added to the National Curriculum, not only will the next generation be financially empowered as a result of their parents and/or grandparents efforts, they are likely to be more financially aware than today's.

Spiralling education costs may mean many choose to use part or all of their lump sum gift to fund further education, indeed almost half the parents and grandparents questioned (48%) said they were saving towards the cost of their children’s college/university years.

FRIDAY'S CHILD WORKS HARD FOR A LIVING

Some though, seem likely to use the money to fund the increasingly popular 'gap' year. 10% of all women respondents stated that they were saving for that very reason - or to pay for a car.

Commenting, James Budden, Jump's Marketing Manager said, “As a nation, we would appear to be placing greater emphasis on saving for the future needs of our young ones.  Regardless of the way the funds are ultimately used, the seed, that long-term saving is a good thing, is being planted - and the youth of tomorrow is being encouraged to think about and plan their own financial future.

He continued, “We believe Jump to be the ideal long-term savings vehicle for those looking to invest in their children's future.  The globally diversified nature of the investment means Jump is relatively low risk - but that doesn't mean we compromise on performance.  Far from it.  If you had invested £25 per month in Jump over the last 15 years, it would be worth some £15,941*."

Jump was developed for those looking to save for their children's future.  Lump sum investment starts at £100, (minimum top-ups £100) with a regular monthly or quarterly savings plan available from £25.  There is no initial charge to invest in Jump - just a 1.0% sharedealing fee and Government Stamp Duty of 0.5%.

For more information on Jump, investors should call free on 0800 082 81 80 or visit www.witan.com.

*Micropal – mid to mid basis with income reinvested as at 31/7/00

- ENDS -

For further press information, please contact:

James Budden, Marketing Manager, Witan Investment Trust.  Tel: 0207 410 3121

OR

Lynne Kennedy/Gordon Puckey, quill communications.  Tel: 0207 618 8905

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FRIDAY'S CHILD WORKS HARD FOR A LIVING/…3

Please remember that past performance is not necessarily a guide to future performance.  The value of an investment and the income from it can fall as well as rise as a result of market and currency fluctuations and you may not get back the amount originally invested.  Banks and building society accounts offer greater security to your capital.

Notes to Editors

1. Jump
The Jump savings plan for children is based on the Witan Investment Trust.  Investments can be made on a lump sum basis, (minimum investment £100) or through a monthly savings scheme (from £25 pcm).  The Trust levies the following charges: sharedealing at 1.0% (minimum £1.25), Government Stamp Duty at 0.5%. The total expense ratio of Witan Investment Trust is just 0.34%.

2. Witan Investment Trust plc

Established in 1909, Witan is one of the UK’s largest investment trusts, managing some £2,110 million, (total assets AITC – 31^st July, 2000) on behalf of more than 40,000 investors.  Witan is listed in the International General sector and invests in a prudently diversified portfolio of around 200 large, well managed international blue chip companies, with some smaller enterprises selected for their excellent long-term growth potential.  The Witan benchmark is 60% FTSE All-Share Index and 40% FT/S&P Actuaries World Index ex-UK.

Witan is managed by Henderson Investors.  It is the Company’s largest managed investment trust and has a consistent performance track record.  Investment policy is geared to the long-term, both with regard to country allocation, risk and stock selection, as befits Witan’s savings proposition.

Henderson Investors was voted Standard & Poor’s Micropal Best Overall Investment Trust Manager for the sixth consecutive year in 1999.  In their 1999 reviews, both Cazenove and Deutsche Bank included Witan in their lists of ‘trusts to follow’.  Merrill Lynch in their report, ‘Go Overweight’, (published 24th March, 2000) said Witan had ‘performed well over the past few months’ and has a ‘firmly established brand’.  Most recently, the Company collected the 2000 Moneywise Investment Trust Awards ‘International Generalist Award’.

3. Research

The research is based on a sample of 1,848 adults, throughout the UK, all of whom had previously expressed interest but had not yet invested in the Jump savings plan for children. The data was collected via questionnaire, with all fieldwork and data processing carried out during July and August, 2000.

For a copy of the questionnaire, please contact Lynne Kennedy or Gordon Puckey at quill communications.  Tel: 0207 618 8905.

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