Child Trust Fund (CTF) - Scottish Widows

1 Child Trust fund (CTF)Supplementary investor information Document incorporating the plan conditionsProvided by HBOS Investment fund Managers LimitedSavings & InvestmentsN0618N2020210148A5 CMYK52883 Scottish Widows , Halifax52883 SIID for Child Trust FundN19-JuN-201810:54 119/06/2018 10:542 This Supplementary investor information Document (SIID) is designed to be read alongside the Key investor information Document (KIID) for the UK FTSE 10 Index Tracking fund , and explain the main points of your Child Trust fund . Together, they summarise important information about our Child Trust fund and provide answers to some important should read these documents carefully to help you understand what you are buying, and keep them safe for future note we are unable to accept business from US we refer to you in this SIID, we mean the registered contact for a Child Trust fund from time to time except in relation to payments into a Child Trust fund where you means any person who makes a payment into a Child Trust you have any questions.

2 Please don t hesitate to contact plan could be suitable for an investor who is investing for growth and understands the risks and investment objective of the fund aims To help the value of the Child s money to grow over time, in a tax-efficient way. The specific objectives and investment policy of the FTSE 100 Index Tracking fund are set out in the commitment Any Government payments in the CTF cannot be withdrawn until the Child s 18th birthday. Additional payments can be made by anyone parents, relatives, friends or the Child themselves. Additional payments must remain invested until the Child reaches 18 years of age. Please see for the current annual limit. The benefits under the plan will only be available to the Child ; you will have no access to any of the plan Risks The value of the Child s investments can go up and down each day, depending on any changes in the market price of the investments.

3 This means the value of a CTF can fall as well as rise and the Child may get back less than invested. Inflation will reduce what can be bought in the future. Tax rules may specific risk factors for each fund are set out in the relevant KIID. You will also find details of the risks in the full OEIC Prospectus, which is available on request, free of 219/06/2018 10:543 Questions and answersWhat is the CTF? An investment plan which has tax advantages for children born between 1st September 2002 and 2nd January 2011. It initially invests in the shares of share class D of the UK FTSE 100 Index Tracking fund , a sub fund of the HBOS UK Investment Funds ICVC (Investment Company with Variable Capital). This is an open-ended investment company (OEIC), which is managed by HBOS Investment fund Managers Limited.

4 There is no income or capital gains tax to pay on any income or growth from the plan. Tax may have been paid by the sub fund or investments held within the sub flexible is it? In addition to any Government payments, you can also invest lump sums or monthly payments or a mixture of both, as long as they don t exceed the current limit. Please see for the current annual limit. You can change the amount of your monthly payments. Any further Government payments will automatically be invested in the might the Child get back? The Child will get back the value of the CTF when they decide to cash it in on or after their 18th birthday. This amount is not guaranteed and will depend on: the amount invested the length of time it is invested the investment performance of the CTF our type of account is our CTF?

5 There are three different types of CTF accounts available generally: Savings accounts Accounts that invest in shares Stakeholder CTF is a stakeholder is a stakeholder CTF account? A stakeholder CTF is one that meets strict Government criteria on minimum standards as set out overleaf. This table also shows for your information a comparison between a stakeholder CTF and a non-stakeholder CTF. The value of the investments in a stakeholder CTF can go up and down. This means the value of a stakeholder CTF can fall as well as rise and the Child may get back less than I take money out? You, or the Child , cannot take any money out of a CTF before the Child s 18th birthday except where a terminal illness claim made on behalf of the Child has been agreed by HM Revenue & Customs (HMRC).

6 319/06/2018 10:544 CriteriaStakeholder CTFNon-Stakeholder CTFM inimum payment 10 Minimum payment can be higher than 10 Maximum yearly charge3/730% of the value of shares held per day. This is approximately per yearCharges can be higherEntry chargeNot allowedCan be appliedExit chargeNot allowedCan be appliedSwitching feesNot allowedCan be appliedAllowable investmentsDiverse range of assets which must include sharesShares, fixed interest investments and cash, but no requirement for diversity of assetsPayment methodsMust accept cheque, direct debit, standing order and direct creditPayment methods can be limitedWhile our CTF meets the Stakeholder minimum standards set out in the table above, it does not mean that this investment is necessarily suitable for the Child or that there is any guarantee of much can I pay in?

7 Currently additional payments up to the annual limit can be paid into a plan each plan year. Please see for the current annual limit. A plan year runs from the Child s birthday to the day before the Child s next birthday. (The first year runs from the day the plan is opened until the day before the Child s next birthday.) If the full contribution limit isn t paid into the plan in any plan year, any unused contribution limit can t be carried over to the next plan year. The minimum lump sum you can pay in is 10 and the minimum monthly amount is 10. You can make additional monthly payments by completing the Direct Debit section on the application form. If you wish to set up a new direct debit then please contact us on 0345 609 0064.

8 Please have your bank details and the Child s Unique Reference Number (URN) handy. If you want to make an additional payment by cheque you can send it to us at HBOS Investment fund Managers Limited, PO Box 1138, Bishops Cleeve, Cheltenham GL50 9QT. Please make the cheque payable to HBOS Investment fund Managers Limited and remember to include the Child s URN on the back of the 419/06/2018 10:545 Where are the payments invested? We invest payments into their Child Trust fund in accumulation shares of the UK FTSE 100 Index Tracking fund . Accumulation shares are shares where any income generated is accumulated into the fund and reflected in the share price. Please see the relevant KIID for more information on the share class of the fund (including the charges).

9 Please note dividend payments may also be received into the fund . When you pay into a CTF, we buy a number of shares in the fund for the Child . We normally value shares at 12 noon each working day. So we ll buy or sell the shares at the prices which apply at the next valuation, after we receive your instructions at our administration address. No payments will be used to buy shares until the CTF has been opened, which we will only do after the cancellation period is refer to the section Can I change my mind? for further details of the cancellation happens to the CTF if the Child dies? If the Child dies while their CTF is open, the plan will continue but will lose its tax-efficient status. If you ask us, we ll provide you with information about the value of the CTF.

10 Once we ve received evidence of the Child s death and the legal personal representatives of the Child s estate request us to sell the shares, we ll sell the shares in the plan and pay them the value as at that point in time. We may request proof of entitlement to the shares, prior to the shares being sold. The Child Trust fund will then end. Until the shares are sold, they will be affected by daily price movements as happens if I die? If you die then the CTF will continue for the Child . If the Child is under the age of 16 then another person can be made the registered contact for the plan. This person must be a UK resident aged 16 or over and have parental responsibility for the Child . If the Child is aged 16 or over, only they can be the registered contact for the plan.