Q. Do you only offer stakeholder CTFs on a discretionary basis?

A. Yes, if you wish to make your own investment decisions you need to open a non-stakeholder CTF.
 

Q. If I elect for a stakeholder CTF how will you invest the money?

A. 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 below) 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.

Initially Pilling’s Investment Managers will be allocating 100% of CTF monies to SG Balanced Managed Fund (previously known as SG Global Managed Fund). We provide details below to explain the nature of this investment and background performance.
 

Fund Aim

The objective of the fund is to provide capital growth over the long term. To achieve the objective, the fund invests in authorised unit trust schemes and open-ended investment companies operated or managed by SG Asset Management. The intention is that the fund will fall within the Investment Managers Association Balanced Managed Fund Sector with a maximum equity exposure of 85%.

Top Ten Holdings as at 31.12.07
Stock Name	%		Portfolio Breakdown
BP	3.1%		UK Equities	48.5%
Vodafone	3.0%		Europe	10.8%
HSBC	2.9%		UK Bonds	10.2%
GlaxoSmithkline	2.3%		America	7.3%
Royal Bank of Scotland	2.0%		Japan	4.2%
NOR/LB 5.85% Dec 2007	1.7%		Pacific	3.8%
UK Treasury 5% Mar 18	1.6%		Global Emerging Markets	3.6%
BT	1.6%		International Bonds	2.9%
Royal Dutch Shell	1.5%		Cash	8.9%
HBOS	1.3%

 

Fund Manager – John Richards Launch Date – 28th April 2000 Fund Size - £110.3 million

 

Discrete Annual Performance % Increase or Decrease
Dates	Fund	Sector Average*
29/09/06 - 28/09/07	+8.0%	+9.7%
30/09/05 - 29/09/06	+9.1%	+10.0%
30/09/04 - 30/09/05	+20.9%	+21.4%
30/09/03 - 30/09/04	+10.1%	+9.9%
30/09/02 – 30/09/03	+21.1%	+14.5%
Past success should not be seen as an indication of future performance * Balanced Managed Sector

SG Asset Management - Societe Generale Asset Management is the fund management division of Societe Generale, the global French Banking and Finance Group. As at end of December 2006, Societe Generale Asset Management had £238 billion in assets under management through its 4 management centres in the UK, Continental Europe, USA and Asia. This ranks the Societe Generale Asset Management worldwide as one of the largest fund management groups in the world.

Since the Societe Generale Asset Management worldwide group became a separate subsidiary of the Societe Generale it has enjoyed sustained growth in assets under management.

The Societe Generale Asset Management worldwide group boasts a balanced mix in terms of client types, asset classes and geographic breakdown.

In the UK, investing with SG Asset Management provides the following benefits:

Successful - Since launch in 1998 their assets under management has grown to over £9 billion.

Fund Choice – They have 16 onshore funds covering a broad range of investment objectives (ie global, UK, technology sector and all major geographic regions) through equities and fixed interest funds, plus a range of offshore funds.

Experience - Employing highly respected fund managers in the UK and globally has been at the core of their success.

Global Resources -  Their fund managers have access to the global resources of the Societe Generale Group which provides the ability to deliver long term sustainable investment performance.

Performance - As active fund managers their funds aim to out perform all investment cycles.

A “Simplified Prospectus” or “Key Features Document” is available for this or any other packaged product we recommend you buy or sell. These documents are marketing tools containing important information about the fund and we recommend you read these before buying, selling or switching investments. The SG Balanced Managed Fund simplified prospectus can also be obtained from www.sgam.co.uk using the link to “private investor”.

 

Q. What is lifestyling?

A.   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.
 

 

Q. How often do you deal in the stakeholder CTF?

A.  We deal once 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 from the SG Balanced Managed Fund or diversify into additional funds under the discretionary arrangement, then this may result in extra deals in that particular month.
 

 

Q. Will I know when deals are being carried out on my stakeholder CTF?

A. 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.
 

 

Q. Can I cancel the discretionary agreement?

A.  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.(CTF0208)