With-profits or without

The recent market setback has served as a reminder to many investors that long-term investment strategies need to be robust if capital losses are to be minimised in the shorter term. In the past, retail investors who needed permanent capital security would consider investing in endowment with-profits funds. They left the day-to-day investment responsibilities to professionals and were expecting a capital guarantee and the prospect of additional secure profits via an annual reversionary bonus. In addition, at the end of the investment period they were expecting a one-off payment in the for...