A positive first year for VitalityInvest

Go to the profile of Vitality
Jun 25, 2019

A year on from the launch of VitalityInvest, CEO Herschel Mayers looks back at the 12 months in which VitalityInvest has won praise for its positively different approach to investments and seen a solid performance from its funds, which are in partnership with Investec Asset Management and Vanguard.

It’s now one year since the launch of VitalityInvest, our unique investment business offering a Stocks and Shares ISA, a Junior ISA and a Retirement Plan. 

With people living longer and wanting more from later life, our aim was to apply our scientifically validated shared value model – already successful in the world of insurance both in the UK and globally – to improve investment outcomes for savers and help them enjoy a healthier, more financially secure life. Our entry into the savings and retirement market was also a logical extension given our core purpose, which is to make people healthier and to enhance and protect their lives, because it lends itself naturally to helping people prepare for their future. 

A unique way to save

Everything we do is centred on the application of our shared value model, which harnesses the power of behavioural economics to encourage positive lifestyle choices. Our proposition therefore aims to encourage people to save more, sooner and for longer, take care of their health and adopt a responsible, sustainable approach to drawing down their savings in retirement. When they do this, it generates extra value which we share with our members to further enhance positive behaviour change. 

The shared value model in investments

How does this work in the investment area? When our members save for longer, we boost their savings with an Investment Booster of up to 15% over 25 years, over and above any investment returns. When they look after their health and engage in Vitality, they can get back up to 100% of their annual product fee. Lastly, when they manage their income prudently in drawdown, we give back up to 50% of the income drawn down each year with the Retirement Booster. 

The shared value model therefore encourages the right behaviours in order to create greater value for those clients who do engage. It also results in the alignment of interests of all stakeholders – clients, advisers, Vitality and society as a whole. Furthermore, by bringing together saving and wellness for the first time anywhere in the UK, we believe shared value provides the solution to encourage and improve the way people save in future.

Well-structured funds, well-respected strategic partners

Of course, you don’t build success without the right funds. To make sure we could cater effectively for a wide range of customer risk profiles and preferred investment styles, we therefore established strategic partnerships with leading global asset managers Investec Asset Management and Vanguard, and with the highly respected risk profiling and asset allocation firm, Dynamic Planner. 

These partnerships have formed the cornerstones to our two primary fund ranges: Performer funds, which are actively managed investment strategies across a range of asset classes, uniquely designed and managed for us by Investec; and VitalityInvest Risk Optimiser (VIRO) Funds, a range of risk-targeted multi-asset funds, systematically managed based on asset allocation inputs from Dynamic Planner, and built from Vanguard index-tracking building blocks. 

Strong year one returns

We’ve been delighted with how our funds have performed in their first year, meeting investment objectives and reassuring both advisers and investors alike with the returns achieved in such uncertain economic times. 

Our Performer range have proven resilient in challenging market conditions. For example, our Multi-Asset Income Fund performed as second best in its sector in the second half of 2018. The fund strategy also features among the “Fund Rated” list of funds by RSMR* along with the strategy for our Vitality Investec UK Listed Equity Growth Fund.

Vitality Investec Multi-Asset Income Fund performance to 31 May 2019

Value of £1,000 invested at launch. Share class launch date: 2 January 2013. Past and simulated performance is not a reliable indicator of future results, losses may be made.
Source: Morningstar, 31 December 2018. For the period prior to May 2018, performance is based on the underlying Investec fund strategy (Investec Diversified Income Fund R, Acc, GBP, which launched on 2 January 2013).

Similarly, the VIRO Funds, our risk-targeted fund solution, have performed in accordance with the risk and return characteristics corresponding to each fund’s risk profiling. In addition to our rigorous internal governance and monitoring, the funds have been reviewed quarterly by independent risk profiling agencies since their inception, by Dynamic Planner, Synaptic and Defaqto. Furthermore, owing to the systematic way in which the VIRO Funds are constructed, we’ve built a simulated track record of these funds’ performance going back to 2013, which further demonstrates the sustainability of the strategies’ outcomes within the desired risk-reward level.

VIRO and Investment Association (IA) Sector performance as of 31 May 2019

1. Simulated performance prior to launch (28 September 2017) has been constructed using historical asset allocations provided by Dynamic Planner with the same asset classes and underlying holdings in which the funds are currently invested. Daily rebalancing to the historical asset allocations has been applied. The simulated past performance is reported net of current fees. Sources of data: Morningstar and VitalityInvest

Does not include impact of Investment Booster performance.

Building a more financially secure tomorrow

It’s clear that solutions currently available in the savings market are not fit to prepare us for the retirement of the future. People are living longer and want more from later life, yet many don’t start saving soon enough to fund those extra years or take steps to ensure they arrive there in good health. 

We believe that, by bringing together saving and wellness for the first time, VitalityInvest provides the solution to encourage and improve the way people save for years to come. It will also help advisers give their clients greater savings and lower fees, while changing consumer behaviour for the better.

To find out more, get in touch with your Business Consultant or call us on 0800 096 4368. Lines open Monday to Thursday 8am – 9pm, Friday 9am – 7pm and Saturday 9am – 5pm. 

* Please note that the RSMR rating applies to the underlying Investec Asset Management fund which this fund invests in (the IFML Vitality Multi-Asset Income fund and the IFML Vitality UK Listed Equity fund). 

For investment professionals only

“Vanguard” is a trade mark of The Vanguard Group, Inc., and has been licensed for use by Vitality Life Limited.  The VitalityInvest Risk Optimiser funds are not sponsored, endorsed, sold, or promoted by The Vanguard Group, Inc. or Vanguard Asset Management, Limited and they make no representation regarding the advisability of investing in the funds. 

VitalityInvest is a trading name of Vitality Corporate Services Limited. Vitality Corporate Services Limited is authorised and regulated by the Financial Conduct Authority.

25/06/2019 | This article’s view is based on the law, practices and conditions as at the day of publication. While we have made every effort to ensure they are accurate, we accept no responsibility for our interpretation or any future changes. | VI O 0049

Go to the profile of Vitality


We’re the first insurance company to reward people for healthy living. We aim to be the best at what we do, offering comprehensive and award-winning Health and Life cover and positively different investments to our members. We believe in the idea of ‘shared value’: we help you take a more active role in managing your own wellness, which can encourage you to develop healthy long-term habits that are good for you, good for us and good for society.

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