Baillie Gifford is to launch a children's saving plan based on its six-strong investment trust range...
Baillie Gifford is to launch a children's saving plan based on its six-strong investment trust range on 19 November.
The wrapper is aimed in particular at grandparents saving for their grandchildren. Investments start from £30 regular monthly savings or £250 lump sum, in both cases per trust.
There are two savings options. The first is a designated account where money is earmarked for a specific child, although on death of the contributor, the sum saved counts as part of the estate rather than as the child's property.
The other is a bare trust under which the child receives the money at age 18 and its parents have no control of the assets.
The wrapper carries no charges other than stamp duty for the purchase of underlying shares.
Baillie Gifford has a policy of trying to increase the retail shareholder base in its investment trusts. The children's plan is the latest initiative.
Next year the group is looking to promote its closed-end funds as suitable investments for pensions, according to Robert O'Riordan, investment trust marketing manager at the group.
Annuity market worth £4bn in 2017
For ‘distress’ caused
Oversees £30bn of advised and D2C assets
Less than a third of top paid employees are women
£1bn business since inception