Why I'm Sticking with F&C

F&C is set to levy a new charge on all Child Trust Funds, but Morningstar's Jackie Beard says she's keeping her money invested despite her disappointment

Jackie Beard, FCSI 28 February, 2013 | 6:00AM
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The recent news that F&C is going to levy an annual charge of £25+VAT on all its Child Trust Fund (CTF) accounts is, without a doubt, disappointing. But, after much deliberation, I’ve decided to keep my accounts with F&C. Here’s why...

I think it’s only a matter of time before other CTF providers impose a similar charge

Firstly, I moved the accounts to F&C because I wanted active management, not an index tracker fund with a charge of 1.5%. When the Labour government introduced CTFs, they stated the maximum charge that could be levied was 1.5%. No surprise, then, that most funds charged 1.5%--simply because they could. But the Silver-rated Foreign & Colonial Investment Trust (FRCL) has Ongoing Charges of less than 0.6%. That’s a distinct advantage for its shareholders.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
F&C Investment Trust Ord872.00 GBX0.58Rating

About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA