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F&C raises prospects with 4% value boost

F&C is seeking to win business from disgruntled with-profits policyholders by raising the projected future share value of its with-prospects fund by 4 per cent of its net asset value.

The “prospect” value of the fund, showing the minimum target for the fund price on its 10th anniversary – November 2011 – is being raised to £1.086 from £1.05, which F&C says is roughly equivalent to a 4 per cent reversionary bonus.

Although that share value is not guaranteed, F&C says the fixed-interest element, which is due to mature in 2011 and which represents one-third of the fund, allows it to make the prediction.

Head of IFA operations Jamie Farquhar says: “It is unfortunate for life companies that with-profits in general have had such a bad press recently but the strength of the F&C proposition is demonstrated by this increase in the face of falling markets.”

HCF Partnership partner Richard Craven says: “It is a good fund but a move like this is not demonstrating a great deal of management prowess. I doubt that it will excite many people in this market.”

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