The Brighton-based mutual also reported an increase in membership from 1.59 million to 1.75 million people along with an operating profit well ahead of forecast at £3m which will be reinvested into the business. The growth of assets and membership has been driven by strong ISA sales, and record Child Trust Fund (CTF) sales in a year where Family was named best CTF provider.
Despite the Government’s decision to scrap the CTF scheme parents have continued to place their vouchers with Family, with another 125,000 CTF accounts set up in 2010 (an increase of 15 per cent on 2009). Family Investments is the largest CTF provider, managing 1.25 million accounts and is firmly committed to managing these funds into the future.
A large proportion of the asset growth has come through the popularity of the Post Office ISA product which has been provided by Family Investments since 2008.
Family Investments’ mutual status, and its commitment to offering simple and accessible long-term savings products for the family, continues to appeal to new and existing customers alike. The business has come out of the recession in great shape and is more than ready for a demanding year ahead.
Family Investments has been working closely with the Government to help shape the Junior ISA, the product that will fill the gap left by the end of the CTF scheme. Junior ISA is planned to launch on 1 November this year, and Family Investments will be at the forefront with a product that will be both accessible and affordable for all budgets so that every family, no matter what their financial means, has the opportunity to set up regular savings for their child.
John Reeve, Chief Executive at Family Investments said: “In the last twelve months the business has delivered a strong set of results in the face of a difficult operating environment. CTF and ISA sales have been excellent and the diversification of our business means we have been able to outperform our forecasts.
“We are now 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 ISA both direct to customers and via high street partners.”
“Our decision to stand by the CTF 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 and we are very much open for business.
“We have been through some challenging economic times, but despite this we remain in great shape. We are now 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 ISA both direct to customers and via high street partners.”
You can access the full report and accounts at the following link:
- ENDS -