The outlook for with-profits funds is unlikely to improve in 2010, despite expectations of strong stock market performance, warns IFA Fraser Heath.
Investors should be wary of Aviva's offer to carry forward its no-MVR guarantee on with-profits bonds, warns Fraser Heath Financial Management.
Aviva has today cut its with-profits income rates for new business, from 3.25% to 2.5%.
Aviva says existing investors in its with-profits fund will not be forced to cover any losses incurred by the introduction of a new money-backed guarantee option.
Aviva is introducing a money-back guarantee for new with-profits customers.
Aviva has cut its market value reduction (MVR) rates on all of its unitised with-profits funds.
The FSA has warned mutuals to ensure existing with-profits policyholders are protected when they seek to launch new products.
Aviva has completed the reattribution of its inherited estate, worth £1.25bn to with-profits policyholders.
Phoenix Life has this week proposed a new scheme to allow policyholders to boost their fund values in exchange for guaranteed pension rates.
The High Court has today approved plans for Aviva's reattribution of its inherited estate.