Prudential, the UK financial services group, has said that its with-profits fund, which at GBP83 billion is the UK's largest, has significantly outperformed the FTSE 100 Total Return and FTSE All-Share Total Return indices over five and ten years, while also outstripping competitor funds.
Crucially for savers, Prudential says its investment success translates into increased payouts for all of its policies maturing in 2006. The major insurer said 4.5 million customers would receive pay-outs bolstered by up to 18%, beating the nearest major competitor which could only deliver 17.7% gross in 2005.
Prudential quoted Ned Cazalet of Cazalet Consulting as saying: Looking at the nine larger with-profits funds (CGNU Life, Clerical Medical, Commercial Union, Friends Provident, Norwich Union, Prudential, Scottish Mutual, Scottish Widows and Standard Life) that have reported to date, the underlying gross unsmoothed investment performance achieved by the Prudential’s with-profit assets stands head and shoulders above everybody else – a 45% cumulative return over the six calendar years from 2000 compared to an average of 20% for the rest.