Not a Financial Adviser but link below (Daily Heil from 2012)

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I worked in wholesale General Insurance so this not my field but 30 odd years ago had to take an exam in "insurances of the Person" so here's my 2 bobs worth.

Generally this type of Policy (dont think its a bond but probably an endowment of some sort) hasn't been doing well with returns well below anticipated.

Mutuals used to give better returns than insurance companies as no shareholders to be paid but most have changeds to Plc's now as they have less restrictions on how they raise capital/invest funds. (e.g. Norwich Union was a mutual but privatised)

It appears that at the time you invested Childrens Mutual were the biggest provider of Industrial Life Cover (supposedly lower premiums/lower sums Insured) to children but got into trouble and by 2012 effectively sold out to a bigger insurer but even then were struggling.

You should have received annual updates from the mutual as to how they were doing and also been asked to vote on the sale of the business in 2012.

Generally all life insurance products are not giving great returns at the moment as they are linked to interest rates, government gilt rates etc. so it is quite possible that the expenses of running the funds are more than the income generated. (I am new to this myself but apparently I soon have to pay an investment manager a fee for his skill and expertise in losing 5% of my capital in the last quarter!)

I would suggest that you check what your Financial Adviser told you when selling these bonds and check if they gave two bonus figures for growth in their illustrations at the start. If he suggested that there would be a surplus you should probably raise this with the FCA regarding the advice you received.

Posted By: biffbro, Mar 26, 23:57:14