Our endowment investment strategy review.

We employ professional fund managers to manage the With Profits Fund according to our investment strategy. We review this strategy for endowments periodically, with the latest review undertaken in April 2008. During the review, we conducted research with our customers, reviewed policy terms and considered a wide range of possible future investment conditions.

The review concluded that our approach of maintaining strong holdings in shares and property continues to provide the most appropriate balance between growth and security.

To help you understand the performance of your policy we send you a regular plan update, which includes the projected value of your endowment based on returns of 4%, 6% and 8%.

This is explained in more detail in the frequently asked questions about endowments, which contain important information for all our endowment customers. Please be aware that there continues to be a risk that your endowment may give you a lower return than the 4%, 6%, 8% range and you should be prepared for this.

Future reviews may recommend changes to our investment strategy. If we do make a significant change we will let you know of any impact on your investment or actions that you may need to consider.

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