Research recently conducted by Funds Network found that nearly half of the advisers it surveyed have rejected with-profits policies for new business and 25 per cent are expecting to transfer three-quarters of their clients away from with-profits over the next few years.
With-profits bonds are still in use, although they are largely seen as legacy investments, which do not have a place in today’s investment environment.
Our view
Some with-profits funds still have a place in your portfolio as not all have been poorly managed. An investment portfolio should be diverse to spread the downside risk. With profits therefore does have a place.