Child Trust Fund Lifestyling

Learn more about Lifestyling a Child Trust Fund and reducing the risk of investment of the Plan in its final years.

Father talking to his daughter about her CTF

What is Lifestyling?

When the Planholder reaches age 15 the way the Plan is invested will change through the process Lifestyling.

The purpose of Lifestyling is to progressively reduce the investment risk of the Plan in its final years, by moving the investments from the current fund, to the Foresters Stakeholder (Schroders) Managed 1 Fund, which follows a more conservative fund strategy designed to provide growth potential with reduced risk. Read our latest investment bulletin to find out more >

Child Trust Fund - Stakeholder Options

If Lifestyling applies to your Plan we will write to you in advance with further information, also giving you the option to either move all of your investment to the Foresters Stakeholder (Schroders) Managed 1 Fund straightaway or to opt-out of Lifestyling and keep your investment in its current fund.

Child Trust Fund Extra

Lifestyling is an option available to Child Trust Fund Extra customers. By choosing to Lifestyle, the Plan will follow the Lifestyling rules as set out below.

Please find the Lifestyling conditions below together with further information about the Foresters Stakeholder (Schroders) Managed 1 Fund.

Father and daughter sitting on a grey sofa using an iPad to activate their online Child Trust Fund account

Please note, if your Child Trust Fund – Stakeholder Options is investing in the Scottish Widows Balanced Growth Portfolio Fund, Lifestyling will not apply as your current investment is already risk-controlled, where no more than 60% of the fund will be held in shares with a minimum of 40% in more stable investments like bonds and other fixed interest holdings.

Understanding Lifestyling

Please find below a list of the lifestyling conditions. These Lifestyling conditions should be read in conjunction with the Terms and Conditions for the Child Trust Fund - Stakeholder Options or the Child Trust Fund Extra Terms and Conditions.

Definitions

Fund Switch - The cancellation of units in one fund and their allocation instead to an alternative Fund or Funds. The Unit Account Value on the effective day of the Fund Switch will be the same before and after the Fund Switch.

Maturity Date - This refers to the child’s 18th birthday.

Plan - This means the Child Trust Fund - Stakeholder Options which is evidenced by the document, with that heading attached and the Schedule.

Registered Contact - This is the person who can give instructions for the management of the account.

Schedule - This means the document with that heading attached.

You - This means the Registered Contact. Your has a corresponding meaning.

Applicability

These conditions apply to Child Trust Fund - Stakeholder Options Plans, which have commenced Lifestyling under these conditions and not ceased at your request.

The conditions apply to the Child Trust Fund Extra Plans which have requested for Lifestyling to commence under the conditions.

Conditions

On each of the dates shown in Column A of Table 1 below, we will

A) Fund Switch the proportion shown in Column B of the Plan’s holdings in any fund(s) other than the Foresters Stakeholder (Schroders) Managed 1 Fund to the Foresters Stakeholder (Schroders) Managed 1 Fund.

If the date shown in Column A is not a business day, then the Fund Switch will be carried out using the prices calculated on the next business day; and,

B) Determine the proportions of contributions directed to each fund as shown in Column B of Table 2 on the later of the dates shown in Column A of Table 2.

These proportions of contributions, except for the Foresters Stakeholder (Schroders) Managed 1 Fund, will then be reduced by the relevant percentage shown in Column B of Table 1.

For the avoidance of doubt, the reduction is multiplicative – for example, if the proportion of contribution allocated to a fund is 80% and the relevant percentage shown in Column B of Table 1 is 33%, then the proportion of contributions will be reduced by 26.4% (that is, 33% of 80%) to 53.6%. We may round the resulting percentages of contribution.

The proportion of contributions allocated to the Foresters Stakeholder (Schroders) Managed 1 Fund will then be 100% less the resulting percentages for all other funds.

These amended proportions will then apply to all contributions received after the date shown in Column A of Table 1, unless subsequently amended by these conditions or by an instruction received from you.

Table 1

Column A	Column B
3 years before the Maturity Date	33%
2 years before the Maturity Date	50%
1 year before the Maturity Date	100%

Table 2

Column A	Column B
The date of the last contribution	The proportions of the contribution paid on that date allocated to each fund
The date on which the proportions were previously calculated under these conditions	The proportions of contribution determined on that date
The date on which an instruction was received from you and amending the proportions	The proportions of contribution advised by you