Do you only offer stakeholder CTFs on a discretionary basis?
Yes, however, if you wish to
make your own investment decisions, we also offer a non-stakeholder CTF.
If I elect for a stakeholder CTF how will you invest the money?
Pilling & Co invest monies via a discretionary management facility. That is
to say we decide on your behalf how to invest CTF money to provide a
suitable risk and reward solution. All of our discretionary managed
stakeholder CTFs will have the same approach until lifestyling (see page 11)
takes effect at age 13.
In choosing our risk/reward profile we have taken into account the
guidelines set out by the government in its information to stakeholder CTF
providers. This means that investment can be made into equities, both in the
UK and overseas, as well as proportions of cash and bonds, both corporate
and government-issued, within a single priced fund. Pilling & Co’s
investment managers will decide how this investment process is to be styled,
whether it be via a single fund or multiple funds.
Pilling’s Investment Managers are currently allocating 100% of CTF monies to
the Baillie Gifford Managed Fund. We provide details below to explain the
nature of this investment and background performance.
Fund Aim
To achieve above average returns over the long term by investing worldwide
in securities in any economic sector. The Fund will be diversified by
holding different asset classes, by investing internationally, and by
holding companies operating in a wide range of industries. The portfolio
will also have holdings in some medium and smaller sized companies as well
as the largest “blue chips”. A portion of the Fund may be invested in
derivatives, both for investment as well as hedging purposes.
Launch Date: 1 April 1987.
Fund Size: £510.80m.
IMA Sector: Balanced Managed
Top Ten Holdings as at
30/09/2011 | |
Holdings |
% | 1 |
BG Investment
Grade Bond Fund |
7.5 | 2 |
BG Emerging
Markets Lead Co Fund |
4.8 | 3 |
BG Active Gilt
Plus Fund |
4.1 | 4 |
BG Emerging
Markets Bond Fund |
3.9 | 5 |
BG Emerging
Markets Growth Fund |
3.4 | 6 |
BG Global Bond
Fund |
2.8 | 7 |
Imperial
Tobacco |
1.8 | 8 |
British
American Tobacco |
1.8 | 9 |
BG Group |
1.6 | 10 |
Royal Dutch
Shell |
1.5 | | | |
33.2 |
Standard Past Performance % Increase or Decrease | Dates | Class A - Inc | Sector Average | |
30/09/06 to 30/09/07 |
10.0% |
9.6% | |
30/09/07 to 30/09/08 |
-16.0% |
-16.2% | |
30/09/08 to 30/09/09 |
13.9% |
9.5% | |
30/09/09 to 30/09/10 |
16.1% |
8.5% | |
30/09/10 to 30/09/11 |
-3.4% |
-3.3% | Past success should not be seen as an indication of future performance |
Performance to 30/09/2011 | | | 6 Months | 1 Year | 3 Years | 5 Years | Class A - Inc |
-10.2% |
-3.4% |
27.8% |
18.1% | Sector Ranking |
88/142 |
65/139 |
6/117 |
11/93 | Sector Average |
-9.2% |
-3.3% |
16.4% |
8.2% |
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About Baillie Gifford
Baillie Gifford is one of the UK's leading
independently owned investment management firms. It is owned and run by 36
of its senior executives who operate as a partnership, a structure which has
endured for over a century and which provides stability for clients and
motivation for employees. It enables us to manage the business for the
future as well as the present, with the emphasis on genuine long–term
thinking rather than lurching haplessly between short term targets.
As at 30 September 2011 our assets under
management were £66 billion (US$103 billion), a sizable figure but one
achieved by steady organic growth rather than being artificially inflated by
merger or acquisition. More important to us than size is our ability to
sensibly manage and support the needs of our clients, something which we do
not think is generally well-served by chasing assets purely for the sake of
size. Accordingly, if we feel it necessary to close a product in the
interests of our current clients then we shall do so.
At the heart of our firm is our investment
approach, something which incorporates the development of people as well as
our philosophy and processes. We are active managers and are prepared to
back our judgement in the composition of portfolios and their management.
For our holdings we seek well-managed businesses where we can see
sustainable competitive advantages. At the moment, as long term investors
with an affinity for growth, we believe that the possibilities open to us
have seldom been greater. With much of our industry obsessed with short
term market gyrations we can offer our clients three key and sustainable
advantages - a stable firm with low turnover of personnel, a well-developed
and successful investment approach, and the courage born of long-term
thinking and experience to back our investment judgement. What is lifestyling? Lifestyling is the requirement for a stakeholder CTF to be switched into lower risk investments when the child reaches age 13. It is designed to protect the value of the fund over the last few years before the child reaches age 18. How often do you deal in the stakeholder CTF? We generally deal twice a month to invest new contributions and to sweep up any cash on the account into the fund. In the event of a large number of contributions arriving shortly after investment day we may, at our discretion, add additional investment days to invest those new funds. If we decide to switch funds or diversify into additional funds under the discretionary arrangement, then this may result in extra deals in that particular month. Will I know when deals are being carried out on my stakeholder CTF? Investment decisions will be made without prior reference to you. However, you will receive an annual statement showing any transactions made in the CTF so you can always see what is going on with the account. Can I cancel the discretionary agreement? Yes, you must give us written notice to cancel the agreement and stipulate if you wish the investments to be sold. Your CTF will automatically be transferred to a non-stakeholder CTF with Pilling & Co (which will incur different charges and investment parameters) unless you ask us to transfer it to another CTF provider. If you elect for a stakeholder CTF on our application form you are agreeing to these terms and conditions under a discretionary management agreement. Further Information
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