With Profits Bond

A clone of my Taiwanese Crystal Ball can be yours for Xmas. :)

If stockmarkets continue to rise there is every chance that the market value adjusters will come off. At least this will mean that the bond will be worth more when you cash it in, even if there are no more bonuses.

Rob Graham

RSA have sold their with profits business to Resolution Life, see

and they have stated that their objective is to improve matters for policy holders.

Thanks Terry, Robin...........and Doug. I'm still unsure but I guess that's what I expected to be !! dfrog

In message , Robin Graham writes

Yes, you are right, but there may be some things to take into consideration.

The first is the FSA which is telling W/P funds to switch their declared bonuses into Fixed Interest so as to 'protect' them for the investors. This couldnt be worse advice, especially when the market was low. The upshot is, of course, that the W/P is not properly invested in the market and, therefore, cant participate in any recovery.

The second is that R&SAs fund has been sold to a special company which will just manage it as a 'closed' fund. Although Resolution Life calim to make things better for shareholders, time alone will tell. Managing a closed fund is a different technique to one where new business is sufficient to cover all claim and maturities AND have some left to invest. This doesnt give me much hope at all.

None the less, I agree with you that the MVA will be removed sooner or later, the question is - how later.

Thanks for your comments John

dfrog