A 'new generation' fund has emerged in the offshore market which provides an alternative to the traditional with-profits concept, but can it beat the industry's negative perception?
It is fair to say that the offshore with-profits market never reached the dizzy heights of the UK market at its peak. However, at a relative level, offshore providers did enjoy a lot of success selling their with-profits funds back into the UK and overseas. But then came the bear market of 2000 - March 2003. Since 2000/01, the UK with-profits market has fallen by a staggering 93% (source ABI). At the same time this forced a number of wider issues surrounding with-profits, such as the lack of transparency, the application of market value reductions, falling equity exposure within the funds ...
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