Let the numbers tell the story

with-profits

Although with-profits bonuses were cut after the market downturn some of these funds have outpeformed the FTSE and produced positive returns, while their design ensures stable returns and smoothed prices

Around the turn of the Milennium the FTSE 100 took a turn for the worse and began descending to its low of around 3,300 in March 2003, shattering the illusion that strong returns would last forever. A misconception began to take root - that all with-profits investments offer poor returns. As the effects of the market downturn began to be felt and bonus rates on with-profit bonds were cut to reflect the changing value of the underlying asset, a rift developed between what people thought their with-profits funds should be worth and the actual value of the assets underpinning them. As bo...