The asset allocation of with-profits funds should be the focus of reviews by advisers as changes may mean the current mix is not what either they or the client may anticipate.
Speaking at the Fidelity FundsNetwork Investment Forum, Ned Cazalet, managing director of Cazalet Consulting, says advisers need to look at three specific areas when reviewing with-profits: Asset allocation Charges – particularly any additional half-term charges which have been quietly added in to existing business Incidence and relative level of guarantees In his presentation, Cazalet points out between 2000 and 2004 life offices sold £100bn of equities, and although he says the weightings in with-profits funds have settled down he expects further equity sales in the future as wi...
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