Investors urged to scrutinise bond contracts

With-profits bonds from the likes of Royal & SunAlliance, Pearl, Norwich Union and Equitable Life are offering investors penalty free exits. A number of groups sold tranches of bonds with the right to exit policies on the fifth anniversary of purchase with no exit penalty, and each subsequent year thereafter. Tom McPhail, pensions specialist at Hargreaves Lansdown, said it was worthwhile for investors to scrutinise their contracts closely for such a clause. He added if the investors time the sale right, they will avoid market value adjusted penalties, which range from 11.1% at Equitab...