View more on these topics

&#39Policyholders missing out on equity upturn&#39

A Buckinghamshire IFA has hit out at life offices for failing to give with-profits policyholders the opportunity to benefit from the upswing in the equity markets.

The Finance Clinic director Jonathan Grace believes that companies should have acted faster to reinvest in equities at the end of the downturn.

Grace considers that many with-profits funds have been left in fixed-interest-type investments because they are closed to new business and that the companies have abandoned their investors&#39 assets.

He adds that life offices have been too slow to react to the upturn and have left policyholders&#39 money languishing in bonds and other investments.

His concern is that investors are being charged to move their assets into areas that will not produce anything like the returns they were told they would get when they first invested.

Grace says: “This really is a case of misselling – putting investors into an area that they never intended to invest in. What customers are getting now is a fixed-interest fund at what could not have been a worse time. Customers are not being given the opportunity to ride out the market.”

Friends Provident&#39s with-profits fund has a relatively high equity exposure at 70 per cent. Retail communications manager Jim Murdoch says: “Our investment strategy has not changed significantly in the past year and the firm is still waiting to see whether equities will become less volatile.”


Lee Birkett

Speed has always been a passion for Lee Birkett, the chief executive of online network Prestbury Holdings, which deals with non-regulated business. Having loved fast cars and motorcycles from an early age, he has only been able to indulge his passion from his armchair since founding Prestbury around 10 years ago. Recently, however, Birkett – […]

Exchange adds quotes to cover special risks

The Exchange is adding a special risks section to portal ExWeb to offer intermediaries protection business quotes. The special risks centre will provide intermediaries with guidance on what constitutes a special risk and help them get the best rate for clients through a special underwriting process. The Exchange&#39s research shows that 62 per cent of […]

Skipton relaunch for equity-property bond

Skipton Building Society is relaunching its guaranteed triple asset bond issue 2 that gives a return which is linked both to UK equity and residential property indices. The investment is in two linked bonds, with a third of the investment going into a one-year fixed-rate bond returning 8 per cent gross until July 9, 2005 […]

Recruiting campaign

Standard Life is believed to be considering replacing finance director John Hylands as it moves to position itself for demutualisation. It refuses to comment on the claim but reports suggest that while a decision has not been made to rep-lace Hylands, feelers have been put out to see whether replacements are available. Standard has confirmed […]

Converting pension savings to a retirement income…

Since last year’s reforms to pension legislation, a significant number of retirees have chosen income drawdown over purchasing an annuity. Income drawdown is more flexible than an annuity. However, it also increases the likelihood that individuals won’t be able to maintain their income throughout their lifetime. In this short video, we explain the risks that […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm