# Is anybody still selling With Profit Bonds?



## Troy (3 May 2002)

I know I covered this topic before but today's <!--EZCODE ITALIC START-->_ Irish Times_<!--EZCODE ITALIC END--> prompts me to shout from the rafters that <!--EZCODE BOLD START-->* I told you so*<!--EZCODE BOLD END--> :eek !

Unfortunately it does not seem to be on their Website but, briefly, <!--EZCODE ITALIC START-->_ Brenda Dunne_<!--EZCODE ITALIC END-->, Canada Life's actuary quoted as follows, <!--EZCODE QUOTE START--><blockquote>*Quote:*<hr> <!--EZCODE BOLD START-->* ...warns that a strong stockmarket rally would be necessary to maintain the present level of bonuses*<!--EZCODE BOLD END--><hr></blockquote><!--EZCODE QUOTE END-->  And she should know (Canada Life are big WPB providers).

Present level of bonuses?  5% before tax and charges!  Hey, if these need a strong stockmarket rally to sustain them  there must be an awful lotta ground to make up.

What adviser could possibly put a client into a WPB today?  If there is a strong stockmarket rally you would be far better off in a fund which gives you your entitlement and not one which will use your gains to subsidize these heavy legacy losses.:hat


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## Brendan Burgess (7 May 2002)

Hi Troy

Brenda's paper will be published on The Institute of Actuaries website. 

I just read an annual bonus statement from Friends First. After 4 years, it showed a policy value of €10,000 with a MVA of €1000 to give a cash-in value of €9000. No MVA will apply if it is held until its 5th anniversary.

There was no mention of the possibility of terminal bonuses, which I thought was surprising. My friend who got the statement had no idea how to interpret it. 

Brendan


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