This type of investment fund, whether residing within a pension plan, endowment, annuity or Bond, has been around for very many years. Traditionally, many British people have invested in ‘with profits’ when they have been looking for a higher return than a bank or building society savings account.

Some of these funds were retained in ‘With Profits’ to take advantage of the possible de-mutualisation of certain providers who in turn promised shares in their new Public Limited Companies (Plc) when that event occurred. All the major providers have now delivered on this scenario and it is now consigned to the history books!

Not all ‘With Profits’ funds have performed badly but all too often, industry spokespeople remind us of the advantages of ‘with profits’ smoothing but the reality is that some funds have seen returns reduce significantly over the last ten years.

Click here for the With Profits Checklist to help you consider a better way.

St. James's Place Wealth Management has never offered ‘With Profits’ plans.

It must surely be an opportune time to ask us to offer an external view on your plans and consider appropriate action to improve the chance of a better investment performance.

Our analysis will include consideration of the following

• The rate of reversionary bonus history and any trend over recent years
• The terminal bonus (if any) track record
• The financial strength of the provider
• The transparency of charges
• The management of the fund, is it outsourced, and whether it is now closed (zombie)
• The current investment spread and how it aligns with your objectives
• The current fund value, transfer/surrender value, exit penalties and other charges (if any)
• The potential for an additional payment under the ‘orphan funds’ proposal now being considered by a small number of providers
• The term remaining to maturity, or in the case of pension plans, the target retirement date
• The application of Guaranteed Annuity Rates within the existing plan(s), terms and conditions and impact upon retirement income later
• Other benefits (such as death cover) which may be lost if transfer away is undertaken

Simply contact us with your basic details and we will do the rest.

We will ask you to sign a letter of authority to allow us to approach your existing provider(s) and we will then be better able to consider the way forward.

With Profits Checklist     more