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Wesleyan With Profits Investors Enjoy Strong Returns

Wesleyan With Profits Investors Enjoy Strong Returns

Wesleyan, the specialist financial services mutual for doctors, dentists, teachers and lawyers has announced its with profits bonus rates, effective from 2 April 2019. Key points include:

  • 6.6%¹ gross annual increase to payouts¹ for With Profits investors
  • £28m additional payment applied to the With Profits Fund in 2018
  • 132%* cumulative investment growth over 10 years on the With Profits fund
  • £10,000 Wesleyan With Profits ISA purchased 10 years ago is now worth
  • £22,040 - an equivalent annual return of 8.2%²
  • Mortgage endowment guarantee remains in place on Open Fund policies
  • No MVRs currently applied to policies


Jonathan Welsh, Wesleyan's With Profits Actuary, said: "In a year when investment markets performed badly - with the UK stockmarket showing a return of -9.5% - we were pleased to provide a 6.6% increase to payouts for our with profits investors after smoothing, a key feature of with profits investments. Despite low interests rates we have been able to pay competitive annual bonus rates.

"Wesleyan's with profits investors also benefitted from an additional £28m being paid into the Fund, which means they will see a further increase of 0.9% on their investment returns in 2019.

This payment came from our additional surplus capital and is one way in which we, as a mutual, share the benefits of our success with our with profits policyholders as we have no shareholders to consider."

Wesleyan Chief Investment Officer, Robert Vaudry added: "With Profits investments are likely to remain popular with our professional customers as they provide some protection from the volatility of the stock markets because of the element of smoothing.

By holding back some of the potential returns when markets outperform, a with profits fund with a financially strong provider can provide a higher return for investors even during a protracted downturn.

"Another benefit of being part of a financially strong mutual is that we can keep a higher proportion of equities in our Fund, which offers the potential for stronger returns over the long term. We believe UK equities are likely to bounce back strongly in 2019 and we have positioned our portfolio accordingly. 

"We will keep a close eye on the UK and global markets in 2019 and take appropriate steps to protect our customers' investments."

Wesleyan's investment growth for our with profits investors continues to compare favourably against industry benchmarks as shown in the table below.

With Profits Fund Investment Performance

   5 years  10 years
Wesleyan With Profits Fund (gross and cumulative return) *  34.7%  132.4%
ABI UK - Mixed Investment 40-85% Shares Managed-Pension  26.4%  103.4%
ABI UK - Mixed Investment 20-60% Shares Managed-Pension  18.3%  81.3%

Source: Financial Express (Dec 2018)

* The performance figures shown above are based upon the gross return on the underlying assets of the With Profits Fund before charges are deducted and do not include the effects of smoothing. The return individual investors have received on their own investments will be different due to the amount invested, smoothing and charges etc.

Wesleyan’s With Profits Fund has achieved a cumulative investment return in excess of 132% over ten years.

 2014  2015 2016   2017  2018  2014 - 18  2009 - 18
 +6.0%  +2.3%  +16.5%  +9.9%  -2.94%  +34.7%  +132.4%


Invested assets backing with profits policies, subsidiaries included.   Please note slightly different investment returns apply for the MSS Fund.

Source: Internal actual returns correct at 31/12/18. The performance figures shown above are based upon the gross return on the underlying assets of the With Profits Fund before charges are deducted and do not include the effects of smoothing. The return individual investors have received on their own investments will be different due to, for example, the amount invested, smoothing and charges.

DISCLAIMER: Past performance of investments is not an indication of future performance and the value of any investments can go down as well as up, meaning you could get back less than you put in.

Anyone considering making any investments should talk to a financial adviser before making any decisions.

1This represents the change in cash-in value based on growth in investment from 1 January to 31 December 2018

2Growth after initial and ongoing product charges.

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'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

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