Surrender is not always the best option

with-profits

Closed with-profits are potentially less able to make the returns that open funds can, but it is not in the interests of all clients to surrender or transfer their policies

Now that many with-profits funds have closed to new business over the last six years, the need to work with clients to review investments in these funds has never been greater. A report issued by the FSA in November 2005 highlights how rapidly the closed sector has grown. By the end of 2004, 42% of firms that had with-profits liabilities of £500m or more were closed to new business. This compares to 13% in 1998, and clearly illustrates the extent to which the 2000 to 2003 bear market accelerated the number of fund closures. The report shows closed funds manage over £85bn, compared to f...