UK with-profits funds: investment performance and strategy 2018
Our fifth annual with-profits investment performance and strategy report is now available. This allows insurers to compare one and five year performance for UK with-profit funds against their peers and industry benchmarks. In addition, we examine the drivers of the performance and look at strategy trends.
With-profits funds offered by UK insurers have had a poor reputation since the near-collapse of Equitable Life, with many depicted as “zombie” funds producing poor investment returns. However, our latest research demonstrates that a large number of the funds are achieving strong returns for long-term savers.
Key findings
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average return over 2017
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funds investigated
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average equity holdings in 2017
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amount represented by the funds surveyed
“The reputation of with-profits funds has been variable over the years. However, our research clearly shows that solid investment performance has been achieved and insurance companies are standing up to scrutiny to provide policyholders with good investment returns.
However, there are still significant variations in investment performance and we would like to see the weaker performing funds review their asset allocations and manager selections to close the gap. This will enable all all with-profits policyholders to benefit from strong, smoothed returns."
Scott Eason, Partner and Head of Insurance