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63% of IFAs have negative view on with-profits, says research

Three out of five (63 per cent) IFAs have a negative view on with-profits based investments, according to research from Managing Partners, the investment management company.

Of the 201 advisers surveyed one in four (25 per cent) have a very negative view and only 13 per cent of IFAs have a positive view on the investments.

The research also reveals that over half of IFAs (59 per cent) are proactively trying to find an alternative investment product that has many of the characteristics of with-profits investments.

MPL managing director Jeremy Leach says: “With-profits investments have been delivering very poor returns for some years now and the turbulence seen on financial markets over the last year will undermine those returns further. With-profits was once a major consideration in the advice offered by IFAs but now it is rapidly becoming a dead duck. Our research shows that only 19 per cent of IFAs are now proactively recommending with-profits investments to their clients. But it is not that investors have lost their appetite for the steady, predictable returns that with-profits policies once offered, it is just that they are failing to deliver.”

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