View more on these topics

Picking with-profits winners

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.

My recommendation is to get out of all closed with-profits funds unless you need the life cover and cannot get it elsewhere, to stay with companies which have 60 per cent or more invested in equities and commercial property and to take advice on those with less than 60 per cent invested in those sectors.

Investment expertise is of vital importance. For example, Prudential has shown excellent invest- ment returns over the past two years, with its with-profits fund being up by 16.5 and 13.4 per cent in 2003 and 2004. Only Wesleyan beat it in those years although Prudential performed better than Wesleyan in 2002 and 2001.

Wesleyan has a total of 85 per cent invested in equities and property. Another company I like is Liverpool Victoria, with a total of 77 per cent in those two sectors and a first-class investment record.

Scottish Widows has a poor investment record and only 55 per cent in equities and property. Standard Life has a slightly better investment record but only 50 per cent invested in the two sectors. However, it was forced by the FSA to sell equities at the wrong time.

My recommendations are Prudential, Liverpool Victoria and Wesleyan.


IN Partnership set for merger

IN Partnership forecasts mass amalgamation of smaller networks and says it is seeking a merger itself by the end of this year. The network, which has 500 registered individuals and over 200 firms as appointed representatives, says smaller networks cannot remain profit- able if they do not improve economies of scale. Chief executive Kevin McDonagh […]

Och aye the new trust rules

The subject of trustee investments has crossed the mind of many an adviser over the years. Especially for those seeking to do business with other professional advisers, working in this market seems like a classic case for effective collaboration. And it is, but it is not easy.

Parlour games in the divorce courts

The court will take into account all the assets of a married couple when deal- ing with their divorce. We can consider each of them in turn and then return to them collectively.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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