Child trust funds: An update on my selections

I have backed three different funds on my son's behalf via his child trust fund.

He's only two but I'm keen to plan ahead - he'll be keeping me in the lap of luxury in my dotage.

I was chuffed in the first year when the Witan Pacific fund delivered a 43% return and the F&C investment trust soared 38%.

This year's been less impressive. The F&C fund delivered a 9% profit in the year to April. A technical change on the Far East fund meant I was forced to sell and reinvest, so I opted for the Pacific Assets Trust, alas it only managed an 18% rise (compared with 43% the year before) and the F&C Global Smaller Companies fund which achieved a meagre 9% gain (51% the year before).

...Hang on, just listen to me. I'm moaning about an annual return of 18%. It's a pure reflection of how I, and many other investors, have become blase about the stock market's recent success. The UK's stock market's recent history ranks among its best years, with the FTSE 100 powering from 3250-ish points at the low in March 2003 (when US bombs began falling on Baghdad) to more than 6500 points today. Wise investors, including me, should stop taking that for granted.

To find out why I picked these funds, see my older posts...

> Child trust funds: where I invested mine
> A 40% return on a child trust fund

And don't miss this brilliant CTF guide - How to pick the best child trust fund

- Andrew Oxlade, Editor, This is Money