Fundsmith Plans Junior ISA For Government Launch Date
Fundsmith today announces plans to launch a Junior ISA. As the latest savings initiative from the Government to promote investing for children, Fundsmith would welcome the Junior ISA investment limit being raised 20% to £3,600 and would also encourage the Government to convert Child Trust Funds to Junior ISAs to aid simplicity, broader consumer adoption and equal opportunities for all children to maximise their savings.
Terry Smith, CEO of Fundsmith, said:
“We welcome the Government’s plans to extend the already highly popular ISA to children. As Junior ISAs cannot be encashed until the child reaches the age of 18 they are ideal for equity investment and such a long term horizon should help investors, be it parents or grandparents, to ride out the peaks and troughs of the market.
“At Fundsmith we focus exclusively on long term equity investment, buying and holding shares in companies that we believe will be around indefinitely, avoiding fads, leverage, derivatives and complicated hedging. The average company in the Fund has been around since 1890. Importantly, The Fundsmith Equity Fund Junior ISA will also benefit from our low-cost approach as we don’t charge performance fees, initial fees or redemption fees, and there aren’t the traditional excessive trading costs as our ideal investment holding period is forever.
“After 18 years of contributions, a Fundsmith Equity Fund Junior ISA could provide a lump sum to generate an income to help fund attending university or used as a deposit for a first home.”