Big fall in Child trust fund

[Orangeblossom78]

Since last year. It was valued at 11K at same time last year and was told would be around 15K when they turned 18 (DS is 15, birthday hence the statement)

It now says valued at 8.5, so has gone down 2.5K since last year.

Is this due to the current situation, any others the same and will it be like to improve?

I am new to this, but it says Stakeholder: Fund name: Royal London UK FTSE4Good Tracker Trust

Our endowment came good :) I have no idea how, but it came in above last months predicted value and only fell short of the original target by a couple of K. After all of the warning letters over years (and us taking some mitigating action) it is a very happy relief.

I guess because they put it in cash in time. Phew!

That's great OYBBK, sorry just checked this thread...glad to hear, much be such a relief at this time. Hoping ours might be Ok as well.

@Orangeblossom78

My pension pot took a belting when cv hit, but it is currently at an all time high!! Just sit it out as long as it is a decent investment company

It's all over the shop at the moment. DS is 'playing', he earned money in his second year of uni and has put some aside to practice with.

He comes down full of amazement that it's back up, or dropped again or whatever.

This is why you shouldn’t invest in trackers especially one with a marrow remit - the FTSE is a poor proxy for the stock market. FTSE 4 good is more specialist - so a woke tracker basically. I bet that wasn’t advised but was self selected.

It should never have been all in one UK focused tracker - UK stocks have been hit hard and are still down.

Next time, don't put all the eggs in one basket

Many of these investment vehicles have something call “income smoothing”. This will smooth the short-term peaks and troughs in the return of the investment. This is particularly so for endowments as they are long term investments with a fixed end date for the investor.

You might want to ask how much the fund is worth before you delay paying your mortgage off. They usually give an accurate figure 28 days before the payment date.

I've just got his annual statement in and it is now back up to just in profit, so despite the sharp dip, it has regained all that plus a bit more. Hopefully no more dips like this as there is only 2 years before he gets his hands on it!

Sorry my last should have started.......I posted earlier in this thread in March . At hat point my child trust fund had fallen 22% of its total value. Now 6 months on, its regain all those losses.

Hi just updating this to say we had the endowment mature this week- maybe lucky due to the vaccine and US election but anyway, is is over by 5K so that is really good. I mean less than would have been expected but at least it has covered the amount and a bit extra as well.