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Life offices fail to meet 1% rule on stakeholder

Most companies are still failing to meet the maximum 1 per cent charge

under stakeholder on individual per-sonal pension plans, according to a

Money Marketing Focus survey.

The annual With-Profits and Unit Linked Survey shows only four companies –

Equitable Life, Friends Provident, Marks & Spencer Financial Services and

Virgin – meet the Government&#39s charging criteria.

Among the notable absentees are Axa Sun Life, CGU, Clerical Medical, Legal

& General, Scottish Amicable, Scottish Equitable, Scottish Mutual and

Standard Life.

The survey also shows average endowment payouts have fallen yet again.

Even payouts on the normally consistent 25-year endowments fell by nearly

1 per cent last year to £40,152 compared with £40,483 in the

previous year.

Shorter-term endowments have fared even less well. Since the annual survey

started in 1991, maturity values on 10-year plans have fallen by 22 per

cent while maturity values for 15-year plans have plummeted by 26 per cent

and 20-year returns have dropped by 14 per cent.

Elsewhere, sales of with-profit bonds have grown in popularity, almost

doubling in 1999 to £12bn from £6.9bn the previous year.

Friends Provident head of stakeholder services Julian Webb says:

“Stakeholder will continue to cause a huge shake- out in the market for

personal pensions as providers are forced to cut charges to stay in line

with the Government&#39s charging requirements.”


Customised loans could pay for dream homes

Homebuyers will take out two loans in the future – one topay for theproperty and oneto turn it into their dream home, according to new researchfrom the CML.The research looks at challenges facing housebuilders. It concludes the UKhas been slow to adapt to the desire of homebuyers for more customisedhomes.Consumers&#39 needs and desires are changing. […]

Three Sipps come sailing in

Following the introduction of James Hay&#39s Flexi-Sipp, we asked our brokerpanel to compare it with two existing self-invested personal pensions fromPersonal Pension Management (PPML) and AJ Bell.Examining the market suitability of the three plans, Anglesea says: “JamesHay&#39s new Flexi-Sipp differs from the others because it appears to begeared primarily towards income drawdown.”Tinslay says: “All three […]

Fund supermarket moves have to be good news for IFAs

Just like going to Tesco or Sainsbury, IFAs will soon be able to shoparound when selecting a fund supermarket.Fidelity has been joined by a new outfit, Consolidated Funds, financed byfour other fund management players. By November, when the new operationlaunches, IFAs will no longer face a Hobson&#39s choice between direct playerEgg, which cuts IFAs out […]

Pru to float in New York

Standard Life says a new poll shows support for demutualisation has fallen from 32 per cent to only 18 per cent. The poll is the latest move by the life office to combat the campaign by carpetbaggers to force it to convert. The MORI poll was conducted nationwide with a random sample of 500 voting […]


The Brunner Investment Trust – April 2017

Welcome to the latest update for The Brunner Investment Trust PLC from the Trust’s portfolio manager, Lucy Macdonald. Market Review Global equities have rallied over the first quarter of 2017, buoyed by signs of strengthening growth and optimism over company earnings, although this rally has faded towards the quarter end. US equities posted their strongest […]


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