With-profits fail to meet savers’ great expectations
Over half of with-profits savers are unhappy with the returns from their funds, according to investment firm Managing Partners Limited (MPL).
Moreover, almost a third of 2,500 savers into these vehicles are “very unhappy” at their returns, with “disappointment” the keynote to investor sentiment according to Jeremy Leach, managing director of MPL.
With-profits funds are supposed to smooth out returns by holding back money made in good years to make up for potential losses in bad ones. It has been argued that returns have beaten standard savings accounts but the stock market crash between 2000 and 2003 has put a large dent in many accounts.