Friends Provident & Resolution

vix2000

Shares or cash? Any advice gratefully recieved from more knowledgable members as I know nothing about shares and finance. Thanks.

yelf

what is it you want to know?

david69_2

I'm taking the shares but they might need to up their offer if they keep going up

Old_Slaphead

In which case more will take shares. I'm sure Resolution won't be too upset by that.

tsmiggy

I read it as if you hold 2500 shares or fewer,then you will only get the cash.If you hold more than 2500,then you get cash up to 2500,then Resolution shares for the amount over and above.I am sure if i am wrong then some kind soul will correct me.

Rolo_Tomasi

My understanding is that if you have less that 2500 shares and do nothing you will get cash. If you want shares then you have to return the document sent recently and you will get 9 new shares for every 10 FP shares you own. I'm no expert so may be wrong but that is how I read the documents sent through.

I'm tempted to go for shares as the stock market is still lower than it was a couple of years ago but would welcome advice from any more knowledgeable money savers.

PipPip

Resolution will buy other books of business. Clive Cowdery has a good track record of buying at significant discount to embedded value and then finding clever ways to unlock surpluses from the funds. For this reason I would take shares.

tsmiggy

I have looked again and it looks like you are correct.The 2500 or less looks like the default condition ie Basic Terms.Ticking the box in section 1 would give you Resolution share.Like yourself i am tempted to go for the shares,but any advice would be helpful.

vix2000

Thanks for the advice. As I only hold 658 shares which I assume is worth very little cash I think I might think long term and go for the shares. Do you think this is a wise move? Theres little to lose as things stand.

edda

No one can give you absolute advice, but the general rule is don't go for the shares if you can't afford to lose the money.

Else, if you don't need the money now or in the foreseeable future and can afford the risk, you could keep the shares. But shares could go down as well as up and dividends are not guaranteed.

MacsReturns

vix2000 wrote: »

Thanks for the advice. As I only hold 658 shares which I assume is worth very little cash I think I might think long term and go for the shares. Do you think this is a wise move? Theres little to lose as things stand.

At 79 and a bit pence per share you'd be looking at better than £520.

I've had 200 shares since demutualisation, so I don't regard it as 'lost' money - well, not compared to the money lost in my pension with them, anyway :rolleyes:

I have been torn on the shares/cash choice since the paperwork came through. I really don't like Resolution - this will be the second pension fund of mine they've swallowed up (not that either of these is very big). On one hand I don't want to sully my hands with their shares, but on the other, they'll probably end up worth more than the pension. And giving up shares for cash when the prices are so low doesn't seem right either.

So, I'll probably go with the shares and hope for some dividends some day...