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Ditch stakeholder pensions and bring back profits

Following my questioning of Norwich Union&#39s ability to predict the length of time before they can make a profit out of a stakeholder pension (Money Marketing, August 29), it has not taken long for them to decide that they will never make a profit out of some of these policies (Money Marketing, October 31).

I don&#39t suppose that there is any point in asking how much they will lose on these policies. Presumably, the same person will be asked to give his best guess again.

Now IFAs are being told that they must market and service pension clients for no remuneration.

Is there any wonder that companies marketing pensions have seen their shares halve in value and with-profits policy values decimated, with the consequential distress to holders of pension plans and low-cost endowments.

Everybody loses out except the people who made the mistake in the first place.

The sooner that Norwich Union and the other major providers ditch stakeholder charging pensions and start marketing the old-style pension schemes, the sooner they will start making profits again and IFAs will start earning a fair return.

Charles Mayson

Beighton, Sheffield


How many courses?

The Diary wants to find out who has been to the most IMA dinnersOne person, who, for reasons of chivalry will remain nameless, is understood to have been to the investment houses&#39 tea party for the last 19 years – albeit in its various UTA and Autif guises.If you or anyone you know can beat […]

Trackers can put up to 20% in one stock

Tracker funds can invest up to 20 per cent in a single stock with the new FSA rules.Firms will get more freedom in replicating the composition of an index. In certain circumstances, single stock holdings of 35 per cent will be allowed.Firms were unable to hold stocks to reflect the true composition of an index […]

Bercow quits over adoption vote

Conservative Shadow pensions minister John Bercow has resigned from the front bench rather than give into pressure from the party to vote against Government plans to allow gay and unmarried partners to adopt children.He has been replaced on the pensions front by former social security minister Oliver Heald, who served in John Major&#39s Government in […]

Horlick gives up her fund role to run SG business

SG Asset Management&#39s high-profile fund manager and chief executive Nicola Horlick is relinquishing her role as joint chief investment officer to concentrate on running the business.Horlick, who is also giving up the management of SG&#39s income fund to her assistant Adrian Gosden, will hand the CIO role to John Richards, who is quitting as lead […]

Bonds in 2017: Stick or twist?

Royal London Asset Management Bond Fund Managers Paola Binns and Craig Inches look at why short duration could be a key tactic for fixed income investors during 2017. Read the full article here The value of investments and the income from them is not guaranteed and may go down as well as up and investors […]


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