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Isn’t it time we gave with-profits a fair hearing?

I read with interest the front-page article in Money Marketing’s April 21 issue – IFAs told to cover their backs on with-profits. Some of the points made in the piece are valid but painting such a wholly negative picture about with-profits hardly seems to be constructive or helpful for IFAs and their clients.

As a recent survey shows, average returns from with-profits policies continue to outperform most comparable investments. So, why should advisers no longer sell with-profits and actively review all existing policies?

If their clients are with the stronger providers shouldn’t they appreciate that the original advice was sound and stay put?

For clients who would benefit from access to a spread of asset classes without the direct effect of stock market fluctuations, where else should they put their money when investing for the long term – not into cash surely?

There is a danger of throwing the baby out with the bathwater. As we reach the end of this year’s “bonus season” we can see that the with-profits returns from the better providers are still strong and the future outlook is more rosy than in the last few years.

With-profits providers that have been able to maintain a relatively high exposure to equities thanks to their superior financial strength, such as Liverpool Victoria, are well placed to take advantage of continuing stability in the stock market.

This bodes well for the longer-term, and it’s about time that the with-profits offerings of the stronger providers were given a fairer hearing by media and IFAs alike.

Rye Mills

Intermediary division director

Liverpool Victoria, Bournemouth


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