Pru backs new Junior ISA product

Prudential will team up with The Children's ISA to launch one of the UK's first Junior ISA (JISA) schemes, which replace the scrapped Child Trust Funds.

The product, which will be available from 1 November, can be opened with a minimum investment of £10 with a maximum of £3,000 paid in per tax year.

The Children's ISA has created a portfolio of products including low cost, actively managed, ethical and Sharia models. It also plans to offer "tax-free savings advice" via its website.

Prudential will be the fund managers in charge of delivering the active managed options via its Pru Dynamic Portfolios. The low-cost option will be run by the independent organisation, Total Clarity Funds.

David Dawson, sales director of the Children's ISA, said: "We intend to be one of the first to market and believe the model we are putting together will be unrivalled."

The ISA is operated by Avalon Investment Services, which administers some £300m invested primarily through IFAs.