Hargreaves to stop selling with-profits

Hargreaves Lansdown has ceased promotion of with-profits bonds in the belief that investors buying them now will see disappointing returns for two years as insurers repair free asset ratios in with-profits funds. The intermediary believes that under all foreseeable market conditions, unit-linked policies will outperform with-profits. Mark Dampier, head of research at the group, said if markets rise, with-profits bonds will not be in a position to increase their bonuses until huge repairs to free asset reserves have been made. In such a case, Dampier suggests investors would be better of...