Director at Fairinvestment.co.uk, James Caldwell comments on the latest with-profits announcement from Standard Life, which follows similar declarations from Norwich Union and Friends Provident
"It is the same old story – as soon as the market gets a bit tough, insurance companies cut bonuses for their policyholders.
"The underlying principle behind with-profits is that firms keep something back when the times are good so that they can maintain the bonus rates for their customers when things aren't going so well.
"The type of people who go for with-profits funds are generally fairly cautious, which means they are not looking for massive returns, usually just for the maturity value to be enough to pay off their mortgage, but it seems that the way these with-profits funds are being managed doesn't tie up with what investors thought they were signing up for." Get endowment advice »