The Unitised With-Profits Fund can invest in a range of assets including equities (company shares), fixed interest bonds (government and company), index linked bonds, property and cash. How much you get back will depend on the length of time you hold your investment, the types of asset held in the Fund and how well these assets perform.
The mix of assets may change over time. During periods of turbulence in economic and investment conditions as seen in periods such as 2000-2003 and 2008-2009, we may take a relatively cautious approach to investment by holding more of the Fund in cash and government bonds. We do this to protect the interest of our members who invest in the Fund and to reduce the ups and downs in comparison to holding a larger proportion of equities in the Fund.
Our target level for equity and property investment is 60% of the Fund as, over the longer term, equities are generally considered to provide the best opportunity for investment returns. The investment performance of the Fund and the overall return you can expect depends on the mix of assets held over the lifetime of your plan.
The target asset mix is shown in our “Guide to how we manage the With Profits Fund”, the chart below shows the asset mix of the Unitised With Profits Taxable Fund as at 31st December 2011.
(Figures have been rounded)
Target Position
The chart below shows our long-term, target asset mix for the Fund (60% invested in equities and property in total):
(Figures have been rounded)
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