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Now ScotMut set to offer Sandlerstyle with-profits fund

Scottish Mutual is set to become the latest office to offer a Sandlerstyle ringfenced with-profits fund.

The proposals are still in the early planning stage, with the company yet to decide the exact design or how it would sit alongside its existing with-profits fund.

But the news will give some comfort to the brand which saw parent Abbey National strike a deal two weeks ago to market Pru-dential&#39s with-profits bonds through its high-street branches in preference to ScotMut&#39s bonds.

Abbey is known to be weary of injecting further capital into ScotMut and a ringfenced smooth managed fund would be less capital-intensive.

In recent months, rival offices Scottish Widows and Scottish Equitable have launched less capital-intensive modern alternatives in anticipation of the post-Sandler regime.

Scottish Mutual head of communications Chris-tine McAllister says: “It is our firm intention to offer a Sandler-style with-profits fund and we are working enthusiastically on it.

“The actual mechanics are not ready for public consumption yet.”

Byrne Williams managing director Tony Byrne says: “They are just pre-empting what they will be required to do by Sandler.

“The new style of with-profits will just be cleaner, not better, and returns are likely to be lower.”

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