Equity Child Trust Fund

This information is intended for members who already have an equity Child Trust Fund (CTF) with Nationwide or people who are considering transferring their existing equity CTF to Nationwide.

The equity stakeholder CTF is provided by Legal & General. This product invests your child’s money in company shares on the UK stock market, via the L&G (N) Tracker Trust, which aims to provide long-term capital growth by tracking the FTSE All-Share Index.

Key features

• Return is linked to the growth of the FTSE All-Share Index*
• It's tax-efficient – there's no personal tax to pay on the investment returns
• Additional annual contributions of up to £3,600 can be made each year, either by setting up a regular standing order, by one-off cheque, or direct transfers from other Nationwide accounts. Additional contributions can be made from just £1.
• It's a stakeholder fund, so it has low charges
  
• It's easy to check the value of your child's investment on our fund price page or in the Independent newspaper
• It's flexible, so you can invest as and when it suits you, subject to annual allowances**
• Legal & General will send an annual statement shortly after your child's birthday plus regular statement on the fund’s performance and overviews of the markets in which it invests. The statement will show how much has been saved and how much interest your child has earned

*The FTSE All-Share is an index of share prices of around 690 leading companies listed on the London Stock Exchange.

**The law relating to tax may change in the future.

Lifestyling Option

To provide an element of protection against sudden stock market falls, the Equity Stakeholder Child Trust Fund provides a Lifestyling Option. Legal & General will write to you shortly before your child’s 13th birthday giving you full details of the Lifestyling Option along with details on how to cancel this option if you wish. Further details of this can be found in the Important Information including Terms and Conditions document.

Annual Management Charge

There is no initial charge, but there is an annual management charge of 1.5% of the value of the fund full details of the charges can be found in the Key Investor Information Document

Before choosing to invest

You should be aware that the L&G (N) Tracker Trust,is rated as medium risk. It’s important that you understand the risks of the fund you choose before you invest.

Please ensure you look at the risk and reward profile on the Key Investor Information Document. This shows the fund’s level of risk in relation to the potential reward. It also shows any specific risks that apply.

The fund’s Prospectus gives you a complete description of the risks. You can obtain a copy free of charge by contacting
Legal & General Retail Investments
Document Management Centre
BNY Mellon House
Ingrave Road
Brentwood
Essex
CM15 8TG

The Key Investor Information Document gives you the key information you need to decide whether L&G (N) Tracker Trust, which the CTF invests in, is right for you. L&G must by law provide one for each of its funds. It is in five sections:

• Objectives and investment policy - tells you whether the fund aims to provide growth or income. It also tells you about the assets it invests in.
• Risk and reward profile - shows the fund's level of risk in relation to the potential reward. It also shows any specific risks that apply.
• Charges for this fund - shows you the one-off and regular charges that may apply to the fund.
• Past performance - shows you the fund's past performance over five or ten years (depending on the fund's launch date). However, it's important to remember that past performance is not a guide to future performance.
• Practical information - gives more details, including how to get further information and documents you may need.

It's essential that you read the Key investor information document carefully so that you understand what you're buying. You should base your investment decision on the information it contains. Please keep it safe for future reference.

You should also read the Legal & General Important Information including Terms and Conditions Document and you should be aware of the following risks before investing:

• Money can only be withdrawn by the child, when the child reaches age 18.
• The value of the investment may fall as well as rise as a result of market conditions and the effects of inflation, and your child may not get back the amount invested.
• If you transfer this investment to a different Cash or Equity Stakeholder Child Trust Fund the value of the transfer may be less than the monies invested.
• If you choose to switch into this Equity Stakeholder Child Trust Fund your investment may not perform as well as where you had it before.
• Where the Lifestyling Option has been selected the value of the funds may be less than if it had not been selected.
• Charges may not remain at their current levels.
• The current favourable tax treatment of the Equity Stakeholder Child Trust Fund may not be maintained in the future.

Here are all the forms you need to manage your existing account or apply to transfer an account