With-profits policies may carry "additional" 10% on surrender value

With-profits bonds may not be worth continuing to invest in, argues IFA firm BestInvest, as the majority of surrender values are in excess of the underlying fund value and will take many years before funds are back to normal levels. According to research conducted by BestInvest, the impact of continually falling markets, lower investment of the fund's assets in equities and the impostition of Market Value Adjusters is likely to leave funds rebuilding the reserves for 5-10 years of normal market conditions before policyholders see potential for decent returns. In particular, BestIn...