View more on these topics

With-profits has paid off for my clients

Peter Hargreaves does not have an IFA view, he has a Hargreaves Lansdown view based on instant gratification and short-termism.

Well, you stick to your view Peter and I will stick to mine because my with-profits funds have done very well for the majority of my clients over the last 10 years in fulfilling their function to protect capital and provide income.

Commission is a cheap- shot reason for condemning with-profits bonds. If the maximum commission agreement had been brought in, after all the work that we did in getting industry consensus on it, then perhaps Peter would not be able to make the comments he does.

But then again, if the Government had not insisted on moving with-profits funds from equities at the bottom of the market and into bonds to satisfy a greedy Chancellor and a misdirected FSA, then with-profits funds would have performed even better than they have. Indeed, to be as resilient as they have been has been the measure of their success rather than their failure. If there is a reason for doing with-profits bonds now, it is because the time for asset allocation is actually upon us. Not in 2003, when people were trying to make names for themselves and would have done better leaving with-profits funds where they were, invested in markets that were going to perform, we are now entering a period where people should be exposed to a wide variety of investment media, including a hefty proportion, as Peter implies, in equities. With-profits fund managers take note.

Perhaps if Peter Hargreaves and his cohort could remove £7.4bn of equity money from the markets, as Standard Life fund managers did in 2003, without causing so much as a ripple in the international equity field, then his criticism would be justified.

It was achieved with salaried long-term fund managers, not short-term bonus-propelled individuals who switch investments at the drop of a hat and call themselves successful when they make -10 per cent instead of the market average of -22 per cent.

Throw your rocks somewhere else, Peter, your article is way off beam and if you do not believe it, I have the figures to prove it.

Terence O’Halloran

Chartered financial planner


Tough times at estate agents

Savills Estate Agents saw a 45 per cent fall in transactions in the last year. Halifax Estate Agents is axing 53 branches and 100 jobs.

In the buffer zone

I am worried that we are in recessionary times and I may lose my job. Am I right to be worried and what I should do to prepare financially?

DB plans risk a rerun of debacle

Government proposals to shore up defined-benefit schemes risk repeating the scandal over endowment mortgages by creating a gap between customer expectations and reality, warns Standard Life.


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