John Reeve, the chairman of child trust fund provider Family Investments, said his company will enhance its presence in the children’s savings products segment by focusing more on Junior ISAs.
“We are looking forward to building on our position as one of the UK’s leading children’s savings providers by being one of the first to offer Junior ISAs direct to customers and through high street partners”, said Mr. Reeve.
Following the scrapping of the CTF Scheme, his company is working closely with the government to help shape Junior ISA, said Mr. Reeve in the company’s annual statement.
Family Investments has made significant progress over the last twelve months and total membership has reached to 1.75 million people from 1.59 million. The Brighton based mutual’s operating profit exceeded analyst’s forecast of £3 million, while total assets under management jumped by an impressive 43 percent to £3 billion.
“In the past 12 months the business has delivered a strong set of results in the face of a difficult operating environment. The diversification of our business means we have been able to outperform our forecasts”, said Mr. Reeves commending the firm’s performance.
Record trust fund sales coupled with improved ISA sales has been the key driver of growth for the year, disclosed Mr. Reeve.
“Our decision to stand by trust funds has been rewarded by parents looking for a home for their children’s savings, the importance of which has been reinforced by recent changes to university tuition fees. We estimate there are still more than 230,000 CTF vouchers waiting to be deposited”, he added.
Talking about Junior ISAs, Alistair Imrie of Edinburgh based A1 Financials said that since most of the customers knew about ISAs, it will be easier for them to understand Junior ISAs.
However, “The downside is that there is no longer any government contribution”, he added.