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Strong Pru smooths over cuts

Prudential is cutting with-profits bonuses by up to 11 per cent.

Reversionary bonuses on personal pensions drop to 4.5 per cent from 5 per cent and on the Pru bond to 4 per cent from 4.5 per cent.

In contrast, Scottish Widows slashed bonuses on some policies last month by 33 per cent.

Pru is paying out £2.8bn in bonuses despite an underlying investment return of -3.5 per cent on its with-profits fund.

Sales of its with-profits bonds through IFAs rocketed by a third to a record £2bn from £1.4bn last year.

Appointed actuary David Belsham says: “The strength of the with-profits fund has ena-bled Pru to provide smooth returns significantly ahead of both the underlying investment return and the FTSE 100 index.”

Informed Choice managing director Nick Bamford says: “Pru is financially a very strong company and I think its increased sales reflect the view among IFAs that it is a core provider of with-profits bonds.”


Porteus re-elected as Sofa chairman

Sofa has re-elected John Porteous as is its chairman for the next year and appointed two new vice-chairs. Phil Billingham Associates chairman Phil Billingham and Informed Choice managing director Nick Bamford will serve as vice-chairmen for the forthcoming year, taking over from Keren Milton and Richard Anderson. Billingham has been a Sofa director since 1999 […]

Corporate bonds outperforming equities

UK corporate bonds outperformed equities by almost 20 per cent in 2001, according to the latest Barclays Capital equity-gilt study.Corporate bonds returned an average of 6 per cent for the last calendar year compared with average equity returns of -13.8 per cent, gilt returns of 0.6 per cent and cash returns of 4.8 per cent.However, […]

CP121 represents an example of FSA&#39s ignorance

Like many, I await clarification of the exact nature of the defined-payment structure and the role of an authorised adviser, as well as the Inland Revenue&#39s input on whether a multi-tied adviser can be self-employed or whether they have to be employed under IR35.One thing that does seem to be lost is the issue of […]

Play a part in depolarisation summit

Money Marketing this week launches the first forum designed solely to help the IFA community shape its own future.The Money Marketing G80 summit on distribution aims to bring together 80 of the most influential IFAs in the country with the key product providers for a series of workshops and panel debates aimed at finding solutions […]


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