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Which? confused by WP stakeholder ringfence

With-profits funds under stakeholder have been dealt a further blow by

Which? after the consumer magazine voiced concerns over the lack of clarity

surrounding how funds are ringfenced.

The news comes ahead of a Which? report on stakeholder due in August.

The report looks at fund choice from different life off-ices&#39 plans and at

which office offers with-profits under stakeholder.

Providers are said to be neither marked up nor down on with-profits as

Which? says it has deliberately left the issue neutral while details

surrounding stakeholder with-profits are demystified.

Principal Which? researcher Teresa Fritz says: “We are keeping it neutral

as it is unclear how these funds are ringfenced.

“We are also not sure if they are worth it and are concerned that like

with like is not being offered but like is masquerading as like. It is a

muddy issue.”

Informed Choice managing director Nick Bamford says: “It has been

recognised that stakeholder with-profits funds are best described as

smoothed managed funds and are quite a different beast from traditional

unitised with-profits.”

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