Where is the CTF invested?

We manage over 1.4 million Child Trust Funds (CTFs) which invest in stocks and shares. Find out more about the fund the CTF is invested in.

Understanding investing

What is investing? Like saving, choosing to invest your money still follows the same objective – to help you grow a lump sum to reach your financial goals.

Funds can be varied and have a range of objectives in mind. They can invest in a specific asset class, a specific country, or a mixture with the aim of generating future returns.

Below you will find the fund objective along with a simple explanation for the fund the CTF is investing in. To make things easier, check out our glossary of terms here >

Finding out where the CTF is invested

We have more money invested into our CTFs than any other provider, which is why 1.5 million customers choose to save for their child's future with us.

Forester Life looks after a range of Child Trust Funds with different investments, including Stakeholder, Non-Stakeholder and Shariah CTFs.

If the CTF includes the Lifestyling option, the fund switches into the Foresters Stakeholder (Schroders) Managed 1 Fund from the Planholder's 15^th birthday.

Our list of CTF Plans and their funds

Below you will be able to find the Child Trust Fund you have with Forester Life and see the fund it invests in.

Child Trust Fund

If you hold a Forester Life Child Trust Fund, you will be invested in the following fund.

Fund name	Fund Objective	What this means
Foresters Stakeholder (Schroders) Managed 1 Fund	A professionally managed fund that aims to generate capital growth over the medium to long term by investing in a portfolio of UK and international company shares, global government and corporate bonds, and cash. No more than 60% of the portfolio is invested in stocks and shares.	As a professionally managed fund, Schroders (the asset manager) will choose and make investment decisions for you 24/7, analyse the markets and look for more opportunities for growth. They will invest your money in different assets besides shares, such as in cash and bonds to mitigate risk to your money.

Child Trust Fund Extra

If you have a Child Trust Fund Extra, you will be invested in one of the following funds.

Please note with a Child Trust Fund Extra, you have the option to opt into Lifestyling.

If your CTF has Lifestyling applied, from age 15 your CTF will be partly invested in the Halifax FTSE 100 UK Tracking Fund and partly in the Foresters Stakeholder (Schroders) Managed 1 Fund. After age 17 your CTF will be fully invested in the Foresters Stakeholder (Schroders) Managed 1 Fund.

Fund name	Fund Objective	What this means
Halifax FTSE 100 UK Tracking Fund	The fund aims to achieve long-term capital growth and produce a return (in respect of income and capital growth) that aims to match as closely as possible the performance of the FTSE 100 Index, before fees and charges are deducted.	The FTSE 100 is an index that measures the performance of the 100 largest companies listed on the London Stock Exchange. The Halifax UK FTSE 100 Tracking Fund invests 100% in companies listed on this index. Therefore, the fund will closely match the market performance of the FTSE 100.
Foresters Stakeholder (Schroders) Managed 1 Fund	A professionally managed fund that aims to generate capital growth over the medium to long term by investing in a portfolio of UK and international company shares, global government and corporate bonds, and cash. No more than 60% of the portfolio is invested in stocks and shares.	As a professionally managed fund, Schroders (the asset manager) will choose and make investment decisions for you 24/7, analyse the markets and look for more opportunities for growth. They will invest your money in different assets besides shares, such as in cash and bonds to mitigate risk to your money.

Child Trust Fund - Stakeholder Options

If you hold a Child Trust Fund – Stakeholder Options, you will be invested in one of the following funds.

If your CTF has Lifestyling applied, from age 15 your CTF will be partly invested in one of the funds below and partly in the Foresters Stakeholder (Schroders) Managed 1 Fund. After age 17 your CTF will be fully invested in the Foresters Stakeholder (Schroders) Managed 1 Fund.

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.

Fund name	Fund Objective	What this means
Aberdeen UK All Share Tracker	The fund aims to generate long-term capital growth by tracking the return of the FTSE All-Share Index, before fees and charges are deducted.	Tracker funds (also known as Index funds) follow the movement of a market index, in this case the FTSE All Share Index. The FTSE All-Share Index is made up of more than 600 UK companies listed on The London Stock Exchange.
Aviva UK Index Tracker Fund	The fund aims to achieve long-term capital growth and to produce a return that tracks the total return of the FTSE All-Share Index, before fees and charges are deducted.	Tracker funds (also known as Index funds) follow the movement of a market index, in this case the FTSE All Share Index. The FTSE All-Share Index is made up of more than 600 UK companies listed on The London Stock Exchange.
Foresters Stakeholder (Schroders) Managed 1 Fund	A professionally managed fund that aims to generate capital growth over the medium to long term by investing in a portfolio of UK and international company shares, global government and corporate bonds, and cash. No more than 60% of the portfolio is invested in stocks and shares.	As a professionally managed fund, Schroders (the asset manager) will choose and make investment decisions for you 24/7, analyse the markets and look for more opportunities for growth. They will invest your money in different assets besides shares, such as in cash and bonds to mitigate risk to your money.
Royal London UK FTSE4Good Tracker	The fund aims to achieve capital growth over the medium to long term principally by matching the performance of the FTSE4GoodTM UK Index of shares, before fees and charges are deducted. The FTSE4GoodTM UK Index selects investments that are in accordance with its own ethical criteria.	Tracker funds (also known as Index funds) follow the movement of a market index, in this case the FTSE4Good UK Index. This more ethical index focuses on companies demonstrating strong Environmental, Social and Governance (ESG) practices.
Scottish Widows Balanced Growth Portfolio Fund	The Fund aims to provide capital growth by investing in funds which are currently and/or which have been managed or operated within the Lloyds Banking Group. These collective investment schemes will provide exposure to shares, balanced with fixed interest securities and some exposure to cash.	This professionally managed fund provides a diversification of investments to help manage risk. It balances your money between shares (sometimes greater risk) and cash (usually less risky).

Child Trust Fund - Shariah

If you have a Child Trust Fund - Shariah, you will be investing in the following fund.

Please note Lifestyling will not apply to your Plan.

Fund name	Fund Objective	What this means
Managed Islamic Global Fund	The fund aims to provide investors with long-term capital growth through investment in a portfolio of equity securities issued by companies from around the world. Investment is permitted in equity securities of companies approved by a Shariah Advisory Board appointed by the Investment Manager and which are compliant with shariah law.	This 100% equity fund invests in an international portfolio of shares, but can only include those companies compliant with Shariah law.

Child Trust Fund - Options

If you have a Child Trust Fund – Options, you can be investing in one of the following funds, or all. You have the choice to switch between all the funds listed below.

Fund name	Fund Objective	What this means
Aberdeen UK All Share Tracker	The fund aims to generate long-term capital growth by tracking the return of the FTSE All-Share Index, before fees and charges are deducted.	Tracker funds (also known as Index funds) follow the movement of a market index, in this case the FTSE All Share Index. The FTSE All-Share Index is made up of more than 600 UK companies listed on The London Stock Exchange.
Foresters Stakeholder (Schroders) Managed 1 Fund	A professionally managed fund that aims to generate capital growth over the medium to long term by investing in a portfolio of UK and international company shares, global government and corporate bonds, and cash. No more than 60% of the portfolio is invested in stocks and shares.	As a professionally managed fund, Schroders (the asset manager) will choose and make investment decisions for you 24/7, analyse the markets and look for more opportunities for growth. They will invest your money in different assets besides shares, such as in cash and bonds to mitigate risk to your money.
Henderson Cautious Managed Fund	The fund aims to provide a return from a combination of income and capital growth over the long-term. The Fund invests in shares and bonds of governments, companies or any other type of issuer, in any country. No more than 60% of the fund is invested in company shares, and the Fund will normally have a strong bias to UK companies and bonds.	This fund provides a diversification of investments to help manage risk. It balances your money between shares (sometimes greater risk) and fixed interest and cash (usually less risky). The fund usually has a high focus on UK denominated shares and bonds.
Henderson European Selected Opportunities Fund	The fund aims to provide a return from a combination of capital growth and income over the long-term by investing in shares of companies, of any size, in any industry in Europe excluding the UK.	This 100% equity fund invests in shares of European companies.
Henderson Global Care Growth Fund	The fund aims to provide capital growth by mainly investing in global equities. The fund will seek to invest in global companies whose products and services are considered by the Investment Manager as contributing to positive environmental or social change and thereby have an impact on the development of a sustainable global economy. The fund will avoid investing in companies that the Investment Manager considers to potentially have a negative impact on the development of a sustainable global economy.	This 100% equity fund has a strong Environmental, Social and Governance (ESG) focus as it aims to invest in shares from global companies, who the fund manager believes will have an impact on the development of a sustainable global economy.
Henderson US Growth Fund	The fund aims to provide long-term capital growth. The Fund invests at least 80% of its assets in a concentrated portfolio of shares of companies, of any size, in any industry, in the United States.	This is a 100% equity fund that invests in just US companies
Insight Investment UK Government All Maturities Bond Fund	The fund aims to generate a return by investing principally in sterling denominated fixed interest securities issued by the UK government.	This is a bond fund, and so doesn't hold any shares. It mainly invests in UK Government bonds, but can also maintain a small exposure to corporate and overseas bonds.
Invesco Perpetual Income Fund	The fund aims to achieve a reasonable level of income and capital growth over the long-term by mainly (80%) investing in shares of UK companies, and may include some non-UK, private and unlisted investments.	This 100% equity fund mainly holds the shares of UK companies.
Invesco Managed Growth Fund	The fund aims to achieve long-term capital growth. The Fund invests at least 80% of its assets in collective investment schemes (including funds managed by the Invesco group) which invest in a broad range of assets including shares of companies and corporate and government debt securities.	This fund provides a diversification of investments to help manage risk, although the greater majority of the holdings are in shares of UK and Global companies.
Invesco Perpetual UK Smaller Companies Equity Fund	The fund aims to achieve long-term capital growth. The Fund invests at least 80% of its assets in shares of smaller companies incorporated, domiciled or carrying out the main part of their economic activity in the UK.	This 100% equity fund invests in the shares of smaller UK companies that are listed on the London Stock Exchange.

Understanding your CTF's fund objectives

Here are some quick definitions of investing terms you may come across in your CTF's fund objectives that may help explain your investment:

Asset

An asset is a type of investment which forms part of your fund investment. Investors can select what assets they wish to invest in, or a professional fund manager can do this for them, such as Schroders. Examples of types of assets (also known as asset classes) include cash, property, bonds, gilts and shares.

Capital

Capital is simply another term for money.

Conservative fund strategy

This type of investment strategy takes a lower-risk approach to actively looking for growth opportunities, usually by diversifying across a selection of assets or holding lower risk assets such as bonds and cash.

Dividends

Dividends are a proportion of a company's profits allocated (or divided) to shareholders. These will usually be paid to shareholders twice a year in the form of cash. Further shares may also be given as an alternative to cash.

Environmental, Social and Governance (ESG) strategy

This is an investment process with a high consideration given to the impact of environmental, social and governance factors in the selection of assets.

Equities

An equity (also known as a share) is an asset where investors can buy a share in a company, commonly one that is listed on the stock market. If the business grows and makes a profit the value of its shares may rise. Equally, if a business performs poorly the value of their equities may fall.

A public limited company (PLC) will offer its shares on the stock markets, normally the stock market of the country where the PLC is based. A limited company (Ltd) will also issue shares, but these will be few in number and usually owned by the Directors or organisation running the company.

FTSE 100 Index

The Financial Times Stock Exchange (FTSE) 100 Index is a share index of the 100 companies listed on the London Stock Exchange with the highest market capitalisation. The London Stock Exchange is a facility where securities – such as shares and bonds – are bought and sold.

So, if your fund follows the FTSE 100, this means that it spreads its investments across those top 100 performing companies, such as British Telecom (BT) and Coca Cola. The next 250 companies are included in the FTSE 250 and the FTSE 350 includes the companies in both.

Growth fund

A growth fund has capital appreciation as its primary goal, rather than income from dividends. It usually consists of companies with above-average growth that reinvest their earnings into expansion, acquisitions, and/or research and development (R&D).

Income fund

An income fund is one with a greater focus on generating income as opposed to capital appreciation. It may, for example, hold shares of companies paying higher levels of dividends, or bonds that provide regular payments of interest.

Professionally managed fund

This is where a fund manager, such as Schroders, will choose and make investment decisions for you 24/7 by analysing global economies and financial markets before selecting the appropriate investments for your fund. An example of this is the Foresters Stakeholder (Schroders) Managed Funds which are actively managed by Schroders.

Risk rating

Every fund has a risk rating level, which is included in the fund’s factsheet or Key Information Document. The risk rating acts as a guide to your fund’s risk level compared to other investment funds. It shows how likely it is that you might lose money from this fund when there is volatility in financial markets. For example, if your fund has a risk score of 1, this means there is very low risk, meaning you are also less likely to see a substantial rise in growth for the money you invest. A fund with a risk level of 7 (very high risk), means you have the potential for much higher, but more volatile, returns.

Stocks and shares

Stocks and shares are bought and sold on stock markets, which give companies a place where they can sell a share of their business to raise capital (money). When your Plan invests in stocks and shares, it means that your money is invested in companies listed on stock exchanges.

Tracker fund

Tracker funds aim to follow the performance of a particular market index. For example, if your fund aims to track the UK FTSE 100 index, the performance of the fund aims to track the performance (after the deduction of fees and other charges) of the top 100 companies listed on the London Stock Exchange. An example of a tracker fund is the Aberdeen UK All Share Tracker Fund, which aims to track the FTSE ALL Share index of UK companies.

Looking for more information on money and investing? Take a look at the MoneyLens Jargon-Buster >

Where can I find the fund my CTF invests in?

Information about where your CTF is invested can be found in your Plan Document and statements. We will send statements to the Registered Contact shortly before your 11^th and 16^th birthday, as well as on your 18^th birthday, which you will also receive as the Planholder.

The Registered Contact can also create their MyPlans account which will provide information about where the CTF is invested.

If you are not sure where your CTF is invested our Customer Services team can help.

As with all stock market investments, the value of your child's Plan can fall as well as rise and you may get back less than has been paid in.

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