Gareth Says – The End of an Era

I am sad to say that the Aviva With-Profits fund is closing to new business at the end of December 2022.

This is the last With-Profit fund that we use, as the Prudential equivalent closed in 2013. With-Profit funds have been used successfully by M&T to avoid the major down turns in the market i.e. now! They function well provided you know how they work i.e. they can have penalties or market value adjusters imposed when markets are in turmoil.

They will, in the future, let you top up if you hold them in a bond. This could be an opportunity to buy a With-Profit bond providing the option to top it up at a later date, we did this successfully with Prudential in 2013.

The annual management fees are banded, the more you put in the lower they are: –

£10,000   – £  24,999         1.40% pa

£25,000   – £  49,999         0.75% pa

£50,000   – £  99,999         0.55% pa

£100,000 – £250,000         0.40% pa

This represents excellent value when investing £25,000 or more, as any annual fee under 1% represents a bargain (possibly one of the reasons for closure!)

If interested contact your usual consultant to see if it would be suitable for you.

Gareth.