Complexity putting scheme members off

Professional Adviser
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Half of AVC schemes offer members a choice of more than 30 portfolios in which to invest, with three quarters providing external fund links

Investment choices for AVC contracts have become so complex that trustees run the risk of members being put off investing, the Hewitt Bacon & Woodrow survey found. Research from the group points out the average AVC scheme currently offers members a choice of 13 different funds, up from 11 last year. Chris Cairns, AVC specialist at the group, said: 'Providers have wholeheartedly embraced the idea of offering choice, and half now offer more than 30 funds, with three-quarters offering external fund manager links. 'Last year, only 30% of providers offered external links. This wide rang...

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