This summarises the current investment position of the With Profits Fund. To understand how this may affect the payout on your policy it should be read in conjunction with ‘your guide to how we manage our With Profits Fund’. If, when you’ve read this guide, you would still like further information; our Principles and Practices of Financial Management (PPFM) gives more detailed and technical information about how we manage the With Profits Fund.
overall With Profit asset mix
We monitor the asset mix for the Fund, and for different policy groups, on a regular basis, and will change the asset mix, depending on:
- The total amount of policy guarantees, and when these guarantees are likely to arise
- Our view of investment market conditions
- The overall financial strength of the Fund (or in other words, the size of the additional assets over and above what is required to meet policyholder benefits and cover other business risks).
The overall asset mix of the With Profit Fund as at 30/06/10 was:
investment returns and policy payouts
The investment return used in asset share calculations is based on the assets backing the with profits policies. As explained in the ‘your guide to how we manage our With Profits Fund’, we group together with profits policies with similar characteristics and use asset shares as the basis for determining policy payouts. The current practice is to group policies together according to product type and the time period until the next guarantee date.
An asset mix is then determined for each group of policies, based on the amount of guarantees in relation to asset shares, and the time period until the next guarantee date. The investment return earned by the assets that have been notionally allocated to each group of policies is then used in the asset share calculations.
For each With Profits policy the asset share is its overall fair share of the value of the assets in the applicable underlying asset mix. The groups of policies and the underlying asset mix are reviewed on a regular basis. You can see the current groupings and asset mix for your plan using the table below;
If your policy was originally taken out with the United Kingdom Civil Service Benefit Society (UKCSBS) and is in;
| policy group |
asset mix
as at 30/06/10 |
| With Profits Endowments Maturing before 1st July 2013 (Sections B, D, E, H, J, LC) |
90% Short Duration Gilts 10% Insight Broad Opportunities Fund |
| With Profits Endowments Maturing on or after 1st July 2013 (Sections B, D, E, H, J, LC) |
100% Insight Broad Opportunities Fund
(see footnote 2) |
| With Profits Endowments Maturing before 1st July 2011 (Section G) |
90% Short Duration Gilts 10% Insight Broad Opportunities Fund |
| With Profits Endowments Maturing on or after 1st July 2011 (Section G) |
100% Insight Broad Opportunities Fund
(see footnote 2) |
| With Profits Whole of Life Products (Sections AC and CB2) |
100% Insight Broad Opportunities Fund
(see footnote 2) |
| Unitised With Profits Bonds commencing 2000-2001(Section S) |
90% Short Duration Gilts 10% Insight Broad Opportunities Fund |
| All other Unitised With Profits Bonds (Section S) |
100% Insight Broad Opportunities Fund
(see footnote 2) |
If your policy was taken out with Engage Mutual Assurance and is in;
|
policy group
|
asset mix
as at 30/06/10 |
| Easy Save, Junior Easy Save and Easy Bond |
100% Insight Broad Opportunities Fund (see footnote 2)
|
| Protected Investment Bond and Protected Loyalty Bond |
100% Insight Diversified Target Return Fund |
footnotes
(1) Insight Liquidity Fund
Managed by Insight Investment Managers, the aim of the fund is to provide stability of capital and income through investment in short term fixed income and variable rate securities.
(2) Insight Broad Opportunities Fund
Managed by Insight Investment Managers, this fund aims to generate long term capital growth through a dynamic asset allocation strategy across several different asset classes (mainly equities, fixed income securities, commodities and property).
