Not all bad for with-profits investors

The regulator is trying to quell the concerns of with-profits investors over the closure of the majority of funds

With 66 with-profits funds out of 110 now running as a closed book of business, the FSA has issued a briefing trying to dispel the myth that investors in these funds are disadvantaged in some way. The situation with closed funds, which amount to some £191bn in assets, representing one sixth of the long-term insurance market, is a complicated one, the regulator noted. Concerns have been raised that policyholders in closed funds are trapped in an impossible position, with future benefits and payouts severely constrained by very conservative investment strategies. While some advisers may fe...