Equities Sell Off For With Profits

Published / Last Updated on 15/09/2006

Prudential has confirmed that it moved £3bn out of equity investments to protected the with profits fund, valued at around £69bn. The move was done before the stock market falls in May this year.

Standard Life also moved its exposure to equities from 55.5% to 45.5% recently.

Prudential’s with profits fund now has just over 54% invested in equities.

Our view

It is good to see providers taking a more active view when managing their with profits funds. In past years equity returns were good and have only recently become volatile.

With so many losses over the last five years providers have become more cautious and tend to move money away from equities in times of falling markets.

Prudential definitely called it right this time and policyholders should be reassured.

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