Friends Provident With Profit Bond

turbobob

There are some quite good write ups of various with profits funds on Citywire. Here is one for FP - http://www.nma.citywire.co.uk/adviser/-/features/with-profits-x-ray/content.aspx?ID=321217

Iconic

baby_boomer wrote: »

That's a charitable assessment :rotfl:

I assume that this is because they are in the "median" group of a dire set of funds?

It's very easy to slate all WP bonds.

What would you do if you were in the OP's position ?

baby_boomer

I'd take advantage of the end of the MVR to cash in or switch (the latter if there is a sizeable tax bill on encashment or if you are going to lose age related allowances). If the bond wasn't too big I'd use ISA allowances to wrap up the cash. A couple will have a £20.400 allowance between them from April 2010 and an extra £6K from October 2009 if they are over 50.

dunstonh wrote: »

FP's WP fund is never going to be ideal.

Agreed. With only 8% invested in shares in December 2008, the fund won't have been able to take advantage of the recent stock market surge.

They aren't marketing the fund any more and plenty of people are switching - so you have very limited returns plus investment charges for ever. It's a fund in run down.

Iconic

baby_boomer wrote: »

I'd take advantage of the end of the MVR to cash in or switch (the latter if there is a sizeable tax bill on encashment or if you are going to lose age related allowances). If the bond wasn't too big I'd use ISA allowances to wrap up the cash. A couple will have a £20.400 allowance between them from April 2010 and an extra £6K from October 2009 if they are over 50.

A cash or stocks and shares ISA? I suppose a 3% net return would be better than a WP bond.

baby_boomer

Who can say what's best for the OP without knowing the OP's overall situation and needs, which might have changed over time.

But I assume they mistakenly reckoned on a more substantial stock market investment than 8% when they originally invested with FP :rolleyes: so a split cash/shares ISA might be in keeping with the original investment strategy.