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Standard cuts endowment cash again

Standard Life’s with-profits pension investors have seen their policy values increase over the past year but endowment customers continue to suffer.

Payouts for 25-year term mortgage and savings endowment policies fall again compared with last year despite Standard’s with-profits fund returning 6.1 per cent over the first half of this year.

For example, a 29-year-old man’s 50 a month 25-year with-profits mortgage endowment is now worth 45,043 compared with 45,663 this time last year. However, a 200 a month with-profits pension built up over 20 years would be worth 108,601 compared with 95,876 last year.

Bonus rates on conventi- onal and unitised policies are broadly unchanged from the start of the year at 4 per cent on with-profits pensions and 2 and 3 per cent across the life with-profits product suite.

Standard’s half-year bonus declaration on the with-profits fund reveals just over a third of the portfolio is invested in equities at 35.1 per cent with 43.2 per cent in fixed interest and the balance in property and cash.

Finance director John Gill says: “During recent months, we have seen a steady recov- ery in equity markets which has had a beneficial impact of the underlying value of most with-profits policies.”

Syndaxi Financial Planning managing director Robert Reid says: “It is really difficult for people reading with-profits documents to know if it is good news overall or just for a selec- ted bunch of people.”


Millfield sells its 25% stake in Lifetime to NU

Millfield has sold its 25 per cent stake in the Lifetime wrap to Norwich Union for 9m, with an extra 6m potentially payable if targets are met. Millfield was one of the original investors in Lifetime in 2002, ploughing 3.25m into the platform. The deal now values the platform at 36m. NU’s stake has increased […]

Winning hand at card game

JP Morgan held a press event at the top of Tower 42 in the City to herald the arrival of former Framling- ton Japanese fund manager David Mitchinson, over from Tokyo for a few days. A rumour circulated that JPM staff had been instruc- ted not to give their business cards to journalists on any […]

Prestbury in network talks

Prestbury is looking for acquisitions and is in talks with a number of mortgage networks with deals set to be announced by October. It says it completed a record 130m worth of new mortgage business in July.

What can drive the India story forward?

By Kunal Desai, head of Indian equities, Neptune Since the election of Narendra Modi as prime minister in May 2014, Indian equities have gone on to outperform both developed and emerging markets. A busy period of governmental and economic reforms, a lower oil price and falling political risk have been the primary drivers over this […]


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