Pearl Group/Resolution

1. Pearl
   The company has a significant exposure to guarantees; it also has a very significant promise on its endowment plans. Their position with certain bonds (those issued after 1995) is odd because they issued a bond which had no MVR terms at all. However they can apply other contractual penalties in some cases. Their exposure because of this is considerable and this has seriously affected the performance, which has been diabolical. All Pearl plans should in our view be assessed through our audit facility with all speed.


2. London Life
   They have significant guarantees on most of their plans.


3. Scottish Mutual
   There are all sorts of guarantees applying on most Scottish Mutual with-profits plans. These include some anniversary guarantees on Bonds.


4. Scottish Providen
   As with Scottish Mutual there are various guarantees on bonds and pensions on most plans, but they do vary from product to product.


5. Phoenix
   This is an amalgam of companies and plans within this company, as they have some old style plans within their grouping, with some very strange guarantee terms, so it is difficult to generalise. There are some bonds from 1999 and 2000 with 10 year guarantees. Investors should get an individual report/audit to determine matters further.


6. National Provident
   They have guarantees on most plans including significant guarantees on anniversary dates on most of their bonds. They have performed unbelievably badly and have limited prospects for the future so any exit route needs to be investigated.