With-profits funds have entered their twilight years

strategy

With-profits are in decline and alternative asset classes are taking their place, which is good news for those seeking absolute returns

The financial services industry is constantly evolving, making the longevity of the two most prominent investment strategies, with-profits and unit-linked managed funds, all the more remarkable. However, the bear market has done its best to undermine both over the past few years. Confidence in the with-profits concept has been shaken, as is evidenced by the significant decline in new business in recent years. However, the concept of smoothing has proved successful in helping advisers overcome client concerns about day-to-day market volatility. This is the key point. The product's design...