Reports have appeared in finance industry newspapers that at their annual board meeting recently, Equitable Life admitted that they had been in discussions with closed life fund buyers about selling its £10 billion with-profits fund. The company have held 'theoretical' discussions, which are at an early stage, and have said that no one will buy the business until they have concluded their £3.75 billion court case against Ernst & Young and fifteen former directors. It is believed that the interested parties are Resolution Life, who acquired closed funds from Royal & Sun Alliance and Swiss Life for £1 billion, and entrepreneur Hugh Osmond, whose Sun Capital Partners acquired HHG's closed life businesses earlier this year.
Our view
With profits are 'dead ducks' at the moment, indeed has rarely recommended them in the last five years. They are 'secret' funds with hidden charges and expenses and each provider has different views on the fund management. It even depends on which actuary looks at the fund to see what return you receive, this is not how to manage investments.