Policyholders in Standard Life have missed out on about £1.25bn in gains because of the company's decision to switch out of equities last year, reports The Times.
Profits foregone for each of the 2.6 million with profits policyholder is calculated at £480, the paper writes. The switch into bonds was triggered by tougher regulations intended to ensure life companies are fiscally sound, and in Standard Life’s case resulted in the biggest single sell off of equities by a UK institution – approaching £8bn worth of shares. The FTSE 100 index’s 500 points gain in the past three months has amplified the opportunity cost of last year’s decision, the paper adds. UK INFLATION COULD be set to strengthen according to the Bank of England’s quarterly repo...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes