UK With-Profits Funds Report

Our 11th annual UK With-Profits Funds report follows a year marked by rising interest rates, geopolitical tensions, and market volatility. 

• View the interactive report.

This report provides a comprehensive analysis of the investment strategies, performance drivers, and sustainability trends of 76 with-profits funds across 24 UK insurers, managing a total of £239bn in assets.

It is designed to help insurers, fund managers, and stakeholders understand the latest trends and benchmark their own performance against industry peers.

Key insights from the report

• Positive returns amid challenges: Despite a turbulent year, with-profits funds delivered an average return of 8.32% in 2023.
• Shifting asset allocations: Fund managers reduced UK equity holdings and increased exposure to overseas equities and corporate bonds.
• Sustainability on the rise: Smaller funds are closing the gap with their larger peers in adopting ESG criteria, reflecting a growing commitment to sustainability.
• Larger funds leading: Larger funds outperformed their smaller counterparts, supported by diversified investment strategies and higher allocations to growth assets.

What’s inside the report?

This year’s report offers a deep dive into several key areas of with-profits funds management:

• Investment performance: Explore the returns across different asset classes and how funds have adapted to market volatility.
• Asset allocation trends: Learn how funds have adjusted their portfolios in response to interest rate changes and global economic conditions.
• Sustainability practices: Discover how funds are integrating environmental, social, and governance (ESG) factors into their investment strategies.
• The impact of Consumer Duty: Understand how new regulations are influencing the way funds approach fees, investment transparency, and consumer outcomes.

Who should read this report?

The report is essential reading for professionals involved in the management or oversight of UK with-profits funds, including:

• Life insurers managing with-profits funds.
• Fund managers looking to benchmark performance.
• Regulators seeking insights into industry trends.
• Investors and stakeholders with an interest in UK insurance and investment strategies.

View the full interactive report or download a plain text version.