equity holdings in pearl with-profits policies could fall further from current level of 35%
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...
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