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Facing up to the with-profits facts

How does Eleanor Linton qualify to be head of the with-profits review?

What are her qualifications that lead her to be bestowed with this title?

Has she ever been in receipt of a maturing endowment – 20 years or 25 years? I doubt it.

Has she ever owned a with-profits bond? I doubt it. If this lady were to ask me, like I suspect would be the case should she ask just about any IFA who has been in the business long enough to have clients with maturing endowments after 20/25 years or with-profits bond holders, are these clients happy, the resounding overall response would be an emphatic yes.

Show me a man with a maturing 20/25-year endowment who has not been happy with the results. Show me an investor who is not happy with the performance of his or her with-profits investment bond over the last two, three, four, five, six, seven, eight, nine and even 10 years.

I would concede that a few holders of endowment policies purchased over the last 10 years, set up in the early 90s, for example, have been a little disappointed. Things were not so bad in the early 90s – not quite so good over the last two, three or four years, with the markets languishing and now being more depressed but these have always been long termed investments and poor performance for a three-fouryear period out of a 25-year term is not an unreasonable possibility.

Who is this head of the with-profits review who is now going to deny future investors the opportunity of an investment vehicle that has done the public so well for many many years? We all know things can go down as well as up. We now have a small blip in the performance of the with-profits arena and all these clever regulators get going again. Why not ban the sale of shares? Why not ban the selling of shares where investors can lose vast amounts of capital overnight?

Please, Eleanor, get real, come out here and talk to a few real people.

Michael Hollingdale

Harvey Curtis Associates,

Hove,

Sussex

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