Adviser concerns over Pearl

Advisory groups believe the turmoil at AMP caused by damaged solvency levels at its UK life subsidiary Pearl should not cause immediate worries for holders of Pearl with-profits policies. AMP has admitted, however, that the asset allocation of the fund could change, with an already reduced exposure to equities falling from its current level of 35%. This means any recovery in the stock market would have a much reduced impact on investment returns compared to other with-profits funds still writing new business. The life office's troubles, just the latest in an industry struggling to retai...