Equitable cuts overheads

By Ruth Alexander Future returns on Equitable Life's with-profits fund are likely to fall now that ...

By Ruth Alexander Future returns on Equitable Life's with-profits fund are likely to fall now that the group is to close to new business. Alistair Dunbar, a senior manager in public relations at the Equitable Life, said that as a consequence of the closure, the society's with-profits fund, which has £25bn of assets under management, will be invested to a greater extent in bonds and gilts rather than equities, which will impair investment performance. Dunbar said that if the historic outperformance of equities against bonds and gilts was repeated, then the investment returns on the fund m...