Guest Spot: Mutuality Matters with Wesleyan’s With Profits Fund

investments small
  • Author : Wesleyan
  • Date : 20 Oct 2021

For Professional Advisers use only

We’re delighted to announce the arrival of an exciting new fund, available for the first time to IFAs and exclusively on the Novia platform. You now have access to the Wesleyan Assurance Society With Profits Fund, previously only accessible online or through Wesleyan Financial Service’s direct advice team.

This gives your customers access to a fund with a long-term performance track record, managed by their award-winning in-house fund management team. Over the past ten years the fund has shown an extremely competitive 98% cumulative return[i]. The Fund’s returns are smoothed so it can deliver more consistently for investors.

Why Wesleyan

You may not recognise the name but for many doctors, dentists and teachers Wesleyan is their preferred specialist financial services provider. They’ve been in business for 180 years and ascribe their success to an ability to adapt to meet customers’ changing needs. And having survived two world wars, global depressions and, more recently, the 2008 financial crisis they’ve proven their resilience.

Mutuality matters

Wesleyan has a strong sense of identity, driven not only by its heritage but also by its mutual status. With no shareholders to consider, it can take long-term, pragmatic decisions that focus on the right outcome for investors and other customers. This leads to high levels of trust with 87% of customers saying that Wesleyan is a brand they can trust.*

As consumers are increasingly looking for financial services organisations that manage their money responsibly and play a greater role in the world around them, organisations like Wesleyan will be in demand.

Just recently Wesleyan announced that all of its directly invested funds, including the With Profits Fund, will adhere to their in house sustainable principles[ii] designed to avoid harm, have a positive impact and drive change.

Wesleyan’s Flagship With Profits Fund

The With Profits Fund is Wesleyan’s largest fund valued at over £4bn, proving that it has remained very popular with Wesleyan’s customers who want a moderate-risk investment that also helps to protect them from stock market volatility thanks to smoothing.

Key to the success of Wesleyan’s With Profits Fund is the financial strength of the organisation. This capital strength means that it is able to carry higher levels of equities within the Fund, giving investors the potential to increase returns on their money. With no shareholders to consider, Wesleyan can take a long-term view of investing. This means in periods of market volatility, when many are moving out of equities, Wesleyan’s award-winning investment team goes into action purchasing previously identified good quality investments at lower cost to further strengthen the Fund.

Increasing customer choice

Access to With Profits has traditionally been off platform for advisers.  We believe there is a huge demand for a mixed asset fund with smoothing facility and we are certain this will prove a popular addition to our network of advisers. The combination of the higher than usual equity content, no exit fees, and the transparent nature of the fund due to it being on platform, enables us to offer all that investors liked about things that have traditionally been associated with With Profits (smoothing investment returns and long-term performance) without the negative features. We are pleased to be able to offer this tried and tested investment solution via the Novia platform.

*Wesleyan Customer Survey 2020 (Based on scores rated 8,9 and 10/10; base size 3807)

[i] https://www.wesleyan.co.uk/campaigns/novia – please see ‘With Profits Growth Pension Fund Series A Factsheet PDF’

 

[ii] Sustainable investing | Wesleyan

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