With profits performance
With profits performance history
The graph below shows how the assets we hold for our with profits policies have performed for each of the last eight calendar years, 1 January to 31 December. The performance is a combination of the returns received from all the investments. These investment returns are before we’ve taken off investment expenses, tax and any policy charges.
Please note that the returns used to calculate bonuses for individual plans over the years will not be the same as those shown below. This may be for a number of reasons, one of which is to reflect the varying features and benefits of different with profits products.
Please note that all investment returns are rounded to the nearest %.
Past performance is not a guide to future performance.
You can find out specific product details by clicking on the link for the relevant product at the bottom of this page.
With profits investment mix
With profits invests mainly in the following asset classes:
UK and overseas shares
With profits invests in shares because they are widely believed to provide the best long-term return. Over the short term, the value of a fund investing in shares can go up and down a lot. Share prices can change dramatically in response to the activities and financial performance of individual companies, as well as being influenced by general market and economic conditions.
Fixed interest securities
With profits invests in fixed interest securities that aim to provide a stable income over a fixed length of time. These are essentially a loan, usually to a company, or sometimes to a government. The return on a fund investing in fixed interest securities comes from the interest that the company or government pays on the loan, and the value of the securities. Fixed interest securities are less risky than shares but are likely to provide a lower return over the long term.
Property fits well in a balanced investment mix as its returns aren’t directly linked to the returns from shares. Investment includes holdings in offices, retail space and industrial property, which can offer good prospects for long-term returns. Commercial property can provide growth through any rises in the value of the property and through the steady income stream that can be received from rents.
We invest in a mix of assets, which can help to reduce the impact of poor performance by any one asset type. As the assets react differently to economic factors, when one is not performing well, another may be performing better.
The pie chart below shows the mix of assets for our with profits policies as at 31 December 2019.
To see the investment returns and asset mixes for specific with profits products, please visit the following pages:
- With profits bonds performance information
- With profits pensions and annuities performance information
- With profits endowments and savings plans performance information
The value of investments may fall as well as rise and investors may get back less than they invested.