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Barnett Waddingham
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UK With-Profits Funds: investment performance and strategy

Published by Scott Eason on

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.

6.22%

average return over 2017

50

funds investigated

30%

average equity holdings in 2017

100bn

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

UK With-Profits Funds

About the author

  • Scott Eason

    Scott is Head of Insurance Consulting, responsible for managing the life and non-life consulting teams which offer high quality, great value advice and support to insurance companies in our core areas of actuarial, risk management and investment advice.

    View Biography

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