For immediate release Tuesday 4th October 2005

IMA URGES PARENTS TO EXERCISE THEIR CHILD TRUST FUND OPTIONS

It is almost 10 months since the first wave of child trust fund vouchers were issued and yet almost 1.25 million vouchers are yet to be placed in a CTF account. The Investment Management Association is urging parents not to delay and to look at the various options available for their child’s money.

Vouchers which have not been invested after 12 months will be automatically placed in the HM Revenue and Customs default Stakeholder account, but this may not be the most appropriate choice for some parents.

In order to help parents weigh up the various options IMA has published a fact sheet “Guide to investing in a child trust fund.” The guide looks at the different types of CTF accounts and explains the risks and rewards from those which invest in shares, bonds and cash.

Mona Patel, Head of Consumer Affairs at the IMA commented:

“ The message to parents must be invest now to make the most of your child’s money. Using investments funds, which are designed for the long-term, gives you the potential to earn higher returns than other types of account, although they may not be suitable for everyone. IMA’s fact sheet will help you to weigh up the pros and cons of each investment and help you to make an informed and appropriate decision about where you should invest your child’s voucher.”

Copies of the Guide and other free publications from the IMA are available both online at www.investmentuk.org/investors or in hard copy format by calling the Investment FactLine on 020 7269 4639.

A copy of the fact sheet can be found here.

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For further information, please contact:
Helen Stephenson, Communications Officer, IMA,  020 7831 0898

Out of hours contact:
Mona Patel, Head of Consumer Affairs, IMA,  07834 089332