Investment Performance
Andrew Milligan - Independent Member
The IGC is pleased with the overall performance of the main funds offered to customers and the overall governance of Phoenix funds.
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Value for money indicator
Why we gave this score
Investment performance
The performance of the nine key default funds offered to Phoenix customers has been reasonable when compared with benchmarks, the funds offered by competitors, or inflation over the medium term.
Our score also reflects the work in hand to improve future long-term performance of the managed funds, and the performance of the range of with-profits funds.
Investment services
The default funds offered to Phoenix customers are well-designed, well-managed and administered in order to meet your expectations.
Our score reflects a regular assessment of the reports from the governance teams, particularly focusing on actions taken to address any performance or process issues which are uncovered.
- Past performance of the main default funds is generally good
- Some of the smaller or older funds perform less well than their competitors
- The company has been encouraged to take action to deal with this issue
- The design of your default fund should deliver decent returns for when you retire
- The process to deal with poorly performing funds has been improved
- Most with-profits funds have performed well against inflation over the long-term
- Annual guarantees can also be a useful feature of many with-profit funds
- The design of the main default funds is suitable for their purposes
- All funds and fund managers are regularly and closely examined, and actions taken where necessary
- If you do not choose a default fund, then there is a wide range of suitable alternative
- The process to deal with poorly performing funds has been improved
Some additional information
Challenges
In order to improve the value for money that customers receive, we set specific challenges to address areas that could be improved. Below is an update on the challenges we set Phoenix for 2024:
- Fully Met: Improve procedures to deal correctly and swiftly with under-performing funds.