View more on these topics

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

Recommended

ABI backs EU single-market plans

The ABI has endorsed the European Commissions new approach to the single market for financial services.

Happy while you work

Well we’ve had scorching weather (yes even up here in Scotland!) and now the Euros 2016 are on – you can’t blame people for wishing life was just one big holiday.  With all these distractions it sometimes feels like work just gets in the way of having a good time! But sunny day skivers are […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com