group diverts capital to cash in £36bn with-profits fund because of uncertain short-term outlook and concerns about corporate profits
Standard Life has decreased its equity holdings within its £36bn with-profits fund to just 57%, diverting most of the capital to cash holdings. The cash allocation within the with-profits fund has now risen to 15% or around £5.4bn at the start of July this year. The mutual cited an uncertain short-term outlook for equities and worries over the robustness of corporate profits as the reasons for the move. Its latest report shows the equity holdings as at 1 October as 41.7% in UK equities and 5.1% in European equities. It has 2.6% in the Pacific Basin, 2.3% in US equities and 1.5% in Jap...
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