The information below relates to the OneFamily (ELL) With Profits Fund.
Our 2022 OneFamily (ELL) With Profits Fund performance
The fund is currently managed by grouping policies together according to product type and the time period until the next guarantee date. An asset mix (combination of investments) 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 underlying investment performance in 2022 was -16.5% for most groups of policies.
See "OneFamily (ELL) With Profits - asset mix" in the table below for more information.
Investment returns and policy payouts
The groups of policies and the underlying asset mix are reviewed on a regular basis.
The investment return earned by the underlying assets of each group of policies is 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.
Please note: past performance is not a reliable indicator of future results. Your investment may go down as well as up and you may not get back the full amount of your original investment.
What this means to individual policyholders
It is important to remember that the fund performance in any one year isn’t directly reflected in a customer’s policy, due to the smoothing process that is a feature of a with profits investment.
Investment returns achieved by the fund will vary over time and there will be periods when investments may do very well, but other periods when they may perform badly. The smoothing process holds back some of the fund growth from good years to help cushion against years where performance of investment markets may not be so good. In effect, it helps to smooth out some of the short term variations in performance.
To understand how this may affect the payout on policies invested into the with profits fund please see our Principles & Practices of Financial Management (PPFM) for the OneFamily (ELL) With Profits Fund which aims to explain how we manage the fund in relation to different sorts of with profits policies. This should be read in conjunction with the fund’s current investment mix.
If you have any questions about your policy please contact our customer contact centre on 0800 169 4321