New jump child trust fund offers world of opportunities

07/04/2008

Witan Investment Services today launches the Jump Child Trust Fund for parents wishing to invest the £250 government voucher in a shares account. The CTF, based on the £1.25bn Witan Investment Trust, offers the potential for strong growth through a globally diversified equity portfolio run by carefully selected fund managers from around the world.

The 18-year horizon of Child Trust Funds makes them particularly suitable for equity investment. Historically, equities have outperformed all other asset classes over the long term: over the last five years, Witan’s total return has been 97.1%* compared to a typical return from cash savings of 13.1%**. The Jump Child Trust Fund offers the potential for positive returns within a balanced, low-risk, low-cost investment vehicle.

Parents can invest the £250 vouchers received both at their baby’s birth and on turning seven in the Jump Child Trust Fund. Parents, friends and family can make additional investments in the CTF to a maximum £1,200 per annum. The Jump Child Trust Fund offers the flexibility of regular monthly payments from £25 to £100 or minimum lump sums of £50. Dividends paid by Witan will also be reinvested into the CTF and all contributions are exempt from income and capital gains tax.

The Jump Child Trust Fund complements the existing Jump Savings Plan for those with children not eligible for the Child Trust Fund or wishing to invest more than the annual £1,200 CTF limit. Minimum monthly investment is £25 (£100 for lump sums).

James Budden, Witan Investment Services managing director said, “The government has made efforts to encourage parents to put money aside for their children’s future and the introduction of the CTF has helped position saving for children at the heart of a family’s financial planning. This has led to a significant increase in interest in child savings schemes and we currently manage around £60m on behalf of some 20,000 children through our existing Jump Savings Plan.

“However, there is currently a paucity of options for parents seeking a share-based vehicle for their child’s CTF: with the new Jump Child Trust Fund, the £250 can go to work from the outset, capturing the excellent long-term growth prospects offered by Witan’s globally diversified, multi-managed equity portfolio. “

All those making new investments into either the Jump Child Trust Fund or the Jump Savings Plan for Children will receive a free copy of Money: Your Children, Their Future [rrp £.6.99]. Written by eminent freelance journalist Sally Hamilton the book covers all aspects of financing a child’s future from teaching the savings habit to passing on your wealth.

For case studies of investors in the Jump Savings Plan for Children or to receive a free copy of Money: Your Children, Their Future, please contact Quill Communications.

For further information, please contact:

NOTES TO EDITORS

Witan Investment Trust share price total return to 29.02.08, source AIC MIS
UK Savings 25000+ Net to 29.02.08, source AIC MIS

Jump Child Trust Fund

The Jump Child Trust Fund is a shares CTF based on Witan Investment Trust. For those wishing to invest in a stakeholder CTF, Witan suggests the Halifax Child Trust Fund. Investors incur a £10 voucher processing fee when the Jump CTF is set up but there is no dealing charge other than the 0.5% Government stamp duty thus encouraging regular savings. An annual management fee will be charged at 1% of the value of the CTF. Witan will make no charge for those wanting to transfer an existing CTF to the Jump Child Trust Fund although those moving to another CTF manager will incur a £10 transfer fee.
www.jumpsavings.com

Jump Savings Plan for children

The Jump Savings Plan for Children offers a cost effective savings vehicle for your child. Minimum investments are from £25 per month with lump sums from £100. The Plan is accessible at any time, penalty-free. Charges are low with no initial or annual fee - 1% share dealing fee and 0.5% Government stamp duty. Jump is based on Witan Investment Trust plc.
www.jumpsavings.com

Witan Investment Trust plc

Established in 1909, Witan is one of the UK’s largest investment trusts, managing some £1.25bn (as at 29.02.08, source AIC) on behalf of some 60,000 investors. Witan is listed in the ‘Global Growth’ sector.
www.witan.com

Registered as an Investment Company in England No 101625.

Witan Manager Team

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