Posted By: Brad Martin
Thu Nov 9, 7:00 AM ET
Brighton, United Kingdom (PRWEB) November 9, 2006 -- Family Investments, the market leader in Child Trust Funds with over 370,000 registered accounts, today launches its ethical stakeholder Child Trust Fund (CTF) after 64% of parents said they would choose an ethical CTF over a standard one if the terms and prospective returns were the same. Rising to meet the growing demand for all things ethical, Family's latest CTF has been designed to help parents ensure the money they save for their children is not being invested in companies they believe are engaged in 'unethical' activities.
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Ethical Britain
The UK accounts for nearly three quarters of Europe's multi-billion pound market in ethical investment2, as a new generation of ethically minded consumers ensure that everything from their shopping basket to their bank account helps them 'do their bit' for the world around them. Family's ethical stakeholder CTF offers parents an opportunity for their children to benefit from the usual tax-efficiency of CTFs, with the added assurance that their money will not be invested into companies that generate significant turnover from:
·Export of armaments and nuclear weapons
·Animal testing of cosmetics and toiletries
·Alcohol and tobacco sale or production
·Trade in prohibited pesticides
·Manufacture or supply of ozone depleting chemicals
·Extracting or importing tropical hardwood
·Pollution of waterways
·Using intensive farming methods
·Pornography
The increasing popularity of ethical foods, household products, clothing and even cars has reached the world of personal finance; however the options available to parents looking to invest their child trust fund voucher in an ethical stakeholder account have been limited to a single account until today.
Green choices
Prior to Family's launch of its ethical stakeholder CTF today, parents could only choose from a small pool of non-stakeholder equity accounts and one other stakeholder account. While both invest in shares the straightforward stakeholder version mitigates some of the risks normally associated with stock market investment through the 'lifestyling' process, lessening the affect of any dramatic fall in share values during the final years before the child turns eighteen.
What is different about Family's ethical CTF?
Family Investments has been helping families save for over 30 years and currently looks after £1.6 billion of family money for over 800,000 people in the UK. While many companies are looking to enter the ethical savings market as demand soars, Family has a proven track record in this area having offered products such as ethical ISA's and children's 'bonds' invested in its Family Charities Ethical Trust for over a decade.
Funds invested in Family's ethical CTF flow into its well established Family Charities Ethical Trust managed by Family fund managers, New Star. By using research from the widely respected ethical research group EIRIS (Ethical Investment Research Services), New Star, Family's fund managers, can ensure that they do not invest in companies which do not meet our ethical criteria. New Star's involvement makes Family's ethical CTF the only actively managed account of its type on the market - the only alternative way to receive the benefits of active ethical fund management would be to invest in a non-stakeholder equity CTF account which would not meet the Government's stakeholder criteria. The benefits of active management are clear with New Star's performance since taking over the fund bringing competitive returns on investment – for example, in the last accounting year (ending 31st March 2006) the fund grew by 23.6% after charges3
The competition
The only ethical stakeholder CTF available other than Family's tracks the FTSE4Good index. Family's active management and the use of EIRIS research to screen out 'unethical' companies have delivered socially conscious, superior performance over its competitor in recent years. Over the past five years Family's ethical fund in which the ethical stakeholder CTF will be invested, has grown by a staggering 55.4%. This means that while £250 invested in the FTSE4Good index 5 years ago would be worth £334, Family's ethical fund would have given a return of over £3884 - although current performance should not be used as a guide for future performance.
Henry Dixon, Portfolio Manager, New Star Asset Management said, "New Star has been managing family's ethical fund for the last few years using our distinct stock picking style to achieve superior returns for investors. The fund has consistently provided investors with solid performance, whilst still adhering to sound ethical principles. New Star is delighted to be managing the fund in which Family's Ethical Child Trust Fund invests as every parent should have the opportunity to provide their child with the best possible financial start to adult life."5
John Reeve, Chief Executive of Family Investments said, "Ethical matters are of increasing interest to many people. The informed consumer realises that what they buy and how they invest has an impact on the wider world. As a leader in the children's savings market we want to give parents the ability to try and do the right thing for their child.
Family Investments is currently offering a free gift to parents who set up a direct debit when they open their Ethical CTF. Parents can chose to receive gift vouchers to spend on a range of eco-friendly products, or have a tree planted in British managed woodland.
Notes to Editors
1YouGov interviewed a random sample of 2143 adults with children eligible to hold CTFs (born on or after 1st Sept 2002), between the 12th – 14th September 2006. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)
2Taken from Eurosif's 2006 European SRI Study
3 This figure has been adjusted to reflect what the past performance of the fund would have been if the charge had always been 1.5%. Past performance is not a guide to the future.
4These figures are based on actual performance and assume stakeholder charges of 1.5% (adjusted). Note that neither fund was available for CTF investment 5 years ago. Figures are up until 29th September 06. Source: Lipper and FTSE (adjusted to include an annual charge of 1.5%).
5 The views expressed here represent those of the individual at the time of presentation and should not be interpreted as investment advice. Past performance is not a guide to future performance.
About Family Investments
·Family Investments is the trading name of Family Assurance Friendly Society – one of the UK's largest Friendly Societies with in excess of £1.6bn funds under management and over 800,000 members
·Family Investments is the market leading Child Trust Fund provider with our Child Trust Fund account available in over 18,000 high street locations - four times greater than any other provider. Family's partnerships include the Post Office, Barclays, Sainsbury's Bank, Bounty, Coventry Building Society, Bradford & Bingley, Clydesdale Bank, Northern Bank, Yorkshire Bank, MGM Assurance and Early Learning Centre
·In March 2006, Family won a prestigious Parent Friendly Award from the baby charity Tommy's as' Best Children's Savings Account' in recognition of their parent friendly products and services.
·Family Investments is authorised and regulated by the Financial Services Authority
Press Contacts
Mandy McAndrew, Hill & Knowlton on 020 7973 4446
Miles Bingham, Marketing Director, Family Investments on 01273 725272
John Reeve, CEO, Family investments, on 01273 725272
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Family Investments
MARK CLIFTON
01273725272
E-mail Information
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