Pearl Assurance is nearly doubling the proportion of equ- ity and property investment in its with-profits policyhol- der fund from 25 to 45 per cent.The change is aimed at improving longer-term performance and Pearl says it is unlikely to affect its bonuses in the short term. Pearl, acquired in April by Life Company Investor Group, says the move follows a detailed analysis of the assets and liabilities of its with-profits fund. Intelligent Pensions technical director David Trenner says following the sharp exit of AMP from the UK market, this could give new hope to perople trapped in poorly performing policies although he admits the increase has still a long way to go before the fund regains the proportion in equities that was typical of a few years ago. He says: “This is a very interesting move as it will not sell any policies but it will look after the policyholders. I think one has to say that for long-term returns, equities have to be the right place to be. With the existing funds of a closed with-profits fund, if there is no risk, there is no reward.” Pearl Group director and chairman of Sun Capital Partners Hugh Osmond says: “This is good news for with-profits policyholders as it breathes new life into the investment performance of their fund. We believe this is an unpreced- ented move for a closed fund.”
It must be remembered that, like stockmarkets, with-profits goes in cycles. I believe that investments in the right with-profits bonds – those with a high proportion of their underlying investments in equities and commercial property – will do well over the next few years, especially where the provider has a high, realistic free-asset ratio and good investment management.
Some of the country’s biggest lenders are refusing to take part in the Government’s flagship HomeBuy scheme for affordable housing and there are doubts over whether trials will be ready for April 2006. Abbey believes the volumes likely to be involved do not warrant the cost of developing systems and Alliance & Leicester has decided […]
Selestia has signed up T Bailey Asset Management’s two funds of funds to the platform.
Protection broker Burgesses has won a court battle to get 120,000 in unpaid commission from Belfast insurance broker Campbell Hunter Consultants. Campbell Hunter Consultants managing director Alan Vance was judged to have failed to pay Burgesses managing director Simon Burgess commission for introducing a 5m a year life insurance policy which was issued to the […]
Smart utility metering; fitness trackers; connected cars; smart factories; precision agriculture: the internet of things encompasses myriad applications. But how do you gain exposure – and profit – from this growing trend, asks Neptune fund manager & CTO Ali Unwin. Read more: Important information Investment risks Neptune funds may have a high historic volatility rating […]
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The curious goings-on in the world of financial services
Experts have played down any immediate moves from the FCA towards those firms that are not prepared for Mifid II regulation that comes into force on 3 January 2018. However, concerns remain that a “material number” of small asset managers have not yet started preparing for the major European regulation. The FCA expects firms to […]
OMGI chief executive and star fund manager Richard Buxton is set to lead a management buyout of the single-strategy funds division of Old Mutual Wealth with the backing of TA Associates. The £550m deal is set to be announced before Christmas, Sky News reports. The buyout is part of Old Mutual’s managed separation, which is […]