View more on these topics

&#39Clairvoyant&#39 can&#39t see whole picture on with-profits

With reference to Roger Harris and his reply (seemingly on behalf of Skandia) with regard to with-profits funds, not only did Mr Harris miss Brian of Skandia&#39s letter but he also missed my own article on why with-profits funds can and do outperform other funds.

Like many readers and correspondents together with market analysts and the FSA, attention is only drawn to investors. With-profits bonds is the example used.

My remarks are primarily aimed at savers. That is, the majority of people in this country. You do not need the silk tongue of a so-called investment manager to look after their meagre offerings but a reliable and assured source of long-term funding, giving them security, guarantees and certainty.

The letter that was published reads as if Roger Harris is a banker. He cites 80 per cent of with-profits funds invested in equities. Tell me what the majority of managed funds, stockmarket Isas, Peps and other frippery are invested in. What other investment medium undergoes an annual review by a third party to establish whether there are enough assets to cover liabilities. Seemingly nothing that Mr Harris would recommend.

The media have a lot to answer for but they are spurred on by people with the dubious mental agility of a certified financial planner or robust investment manager (who is likely to have just lost his clients over 30 per cent of their hard-earned wealth) just looking for his trail fees.

What else but history are you going to look at, Mr Harris, or are you a clairvoyant to boot?

You may suspect that the markets are going down but they might just surprise you.I was around in 1972/1974 and the market went from 1,500 to 147 on the FTSE 100 index and, yes, the world has changed. There are more know it alls, more self-seeking regulators, more unqualified comm-entators, in fact, more people who really ought to do more research before opening their mouths and dumping the public, who demand their integrity, into yet another quagmire of misinformation.

With-profits funds may not be perfect but Mr Harris&#39s monologue did little to persuade me that he knows of anything else that serves the public better, past, present or future.

Terence Halloran

Chartered insurance practitioner

O&#39Halloran & Co,

Newland, Lincoln


&#39FSA believed Equitable Life&#39s confident claims&#39

Appalling communications and an information vacuum between the regulator and Equitable Life led to the Equitable debacle, according to the FSA.It says the “die was cast” well before it took over regulating Equitable in 1999 but the internal report by Ronnie Baird admits there are a “number of things which the FSA could have done […]

Skipton tracks three indices

Skipton Building Society is feeding the current frenzy for guaranteed products with its 5-year guaranteed growth bond. The bond will track three stockmarket indices, the FTSE 100, Eurostoxx 50 and S&P 500, over a five-year term. It will return the original capital to investors however these indices perform, plus a minimum of 22 per cent […]

Genesis Home Loans – Planet & Moons Fixed 6.99 Per Cent

Thursday, 25 October 2001.Fixed term: Until January 1, 2003.Fixed rate: 6.99 per cent.Minimum loan: £35,000.Maximum loan: Up to 85 per cent of valuation subject to a maximumof £750,000, up to 90 per cent subject to a maximum of£200,000.Income multiples: 3.5 times principal income plus second or threetimes joint.Arrangement fee: £395.Redemption: 6 per cent of original […]

Norwich Union rolls up a retirement package

Norwich Union is rolling up a range of products for the retirement market into one package to provide a comprehensive offering for people approaching retirement.The package, marketed under the line “For the life your clients deserve after work”, has been designed to help IFAs offer clients greater flexibility in retirement and highlights the breadth of […]

Life cover for life

Jennifer Gilchrist Proposition Lead – Design, Royal London When someone mentions whole of life plans, most people will think of a niche product that serves as an inheritance tax planning tool for high-net-worth clients. And it’s really not surprising they’ve been pigeonholed in that way because before the arrival of RDR in 2013, that’s more […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment