Low SL with-profits return to prompt withdrawals

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Financial advisers are expecting more clients to surrender their Standard Life with-profits policies as its latest bonus rate announcement reveals the fund returned just 2.2% in the last six months.

A statement issued yesterday by the now-listed insurance firm blames the recent stockmarket volatility and higher prices in the bonds sector for an average gross return, before tax, on its with-profits fund of just 2.2 %. However, Colin Jackson, director at Baronworth Investment Services, says he still has clients holding SL with-profits plans, but he expects an increased number of clients to cash in their investments as there is now even less reason for clients to hold onto their Standard Life with-profits policies following the demutualisation sharefall. More specifically, he says the...

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