US-owned life office The Hartford has put together a with-profits review guide for advisers with clients in the asset class.The Hartford has consistently targeted with-profits money since launching into the UK last year. Its latest with-profits review guide includes key questions and issues to consider, template letters for approaching clients and providers and a data-gathering form. The Hartford is also offering an increased allocation rate of 102 per cent into its unit-linked bond, plus loyalty bonuses of 1.5 per cent and then 2 per cent of the bond’s value after seven and 10 years respectively. Managing director of marketing John Enos says market value reductions remain a key driver behind adviser and client reticence to switch out of with-profits. He says providers are increasingly dropping their MVRs as markets continue to rise. Scottish Widows and Norwich Union have both cut exit penalties recentlyEnos says: “We recognise that moving out of with-profits is a sensitive and complex process. Until now, it has been difficult to fully understand the underlying issues and recommend viable investment alternatives but we are urging IFAs to waste no time in reviewing their clients’ with-profits investments.”
All protection providers should reveal their claims statistics to improve understanding and decrease instances of non-disclosure by clients, according to Abbey for Intermediaries. Head of life and health propositions (protection) Sue Wilkinson made her call as ScotProv released its critical-illness claims data for January to June 2005. The data shows that the majority of unsuccessful […]
F&C optimistic despite signs of cherrypicking by funds
The Invesco Perpetual Aim VCT will offer 25m in new ordinary shares in January 2006. The trust launched in June 2004 and was the most successful launch by a new entrant into the VCT marketplace, raising 25.1m through an offer for subscription.
Investment giant Fidelity will pay trail commission for the first time on unwrapped investments into 20 of its funds in response to IFA demand. The firm already pays trail on investments inside Isas but is making the move in response to repeated calls from IFAs to contribute towards the cost of their clients’ ongoing portfolio […]
Do macro headlines create white noise which impacts market prices? Portfolio Manager at Harris Associates, David Herro, discusses how market volatility can create opportunities to buy good business at a discount.
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Aberdeen Standard Investments has agreed a joint venture with Virgin Money to provide asset management services to its customers. Under the terms of the deal, Aberdeen Standard will acquire 50 per cent of Virgin Unit Trust Managers for an upfront cash payment of £40m. The transaction is expected to be completed by the end of […]
Fewer savers are turning to an adviser before fully cashing out their pension, latest FCA figures show. Between April and September 2017, just 32 per cent of full withdrawals were advised, down from 44 per cent the previous year. 95 per cent of the decline in advice was attributed to cash outs for pots under […]
Hargreaves Lansdown will be able to return “loyalty bonuses” to investors tax-free after winning a legal battle with HM Revenue and Customs. The fund shop says at least £15m will collectively be returned to around 150,000 investors. HMRC has 56 days to appeal the decision of the Upper Tax Tribunal that loyalty bonuses are not […]