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Wesleyan delivers 6.6% growth for With Profits investors

Wesleyan delivers 6.6% growth for With Profits investors

Wesleyan defied the 2018 market downturn by delivering a gross annual increase to pay-outs of 6.6%¹ to customers invested in its flagship With Profits Fund.

Investors in the With Profits Fund received this return which is expected to be market-leading. In addition, Wesleyan will be making an additional payment of £28m into the With Profits Open Fund in 2019, which represents a 0.9% uplift to investment returns. The Fund itself showed a small negative return due to the volatility of the stock markets. However, a key feature of with profits investments is ‘smoothing’ which aims to even out some of the short-term uncertainty that can exist across investment activity.

How does With Profits work?

The Wesleyan With Profits Fund is invested in a range of assets,
including equities, property, fixed interest and cash.

The return on these investments is one of the factors that affects the value of your with profits investment. Investing in the Fund can be done through a range of products including the With Profits ISA and Capital Investment Bond.

One of the main aims of the Fund is to reduce the effect of hort-term fluctuations on the value of your policy. In order o achieve this, we don’t pass on the full amount of the nvestment returns and other profits and losses, as they arise. Instead, we apply any changes to the value of your investment over time, cushioniong the impact through smoothing.

In the long term, we aim to pass on all of the investment returns, profits and losses from our business activites attributes to the Fund. So, if investment returns remain high, then pay-outs are likely to be higher. Similarly, if investment returns remain low, then pay-outs are likely to be lower.

£10,000 invested in a Wesleyan With Profits ISA five years ago would now be worth £13,741². The same amount invested in a typical managed fund³ would be worth £12,382.

“Pay-outs from Wesleyan’s With Profits Fund have out performed both equity and bond markets in 2018. 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.” Robert Vaudry, Cheif Investment Officer.

More good news


The 2018 report from Barnett Waddingham, the UK’s largest provider of actuarial, administration and consultancy services, rated Wesleyan’s With Profits Fund as top for investment return in 2017, across 50 other with profits funds. This was the second successive year Wesleyan had been awarded this and was the only Fund to achieve above a 10% return for investors over five years.

Why choose Wesleyan

We have top performing funds and an award-winning in-house investments team to help customers achieve their long-term financial goals. We are committed to securing the financial futures of dentists, doctors, teacher and lawyers – so they can focus on the vital work they do for society. Wesleyan Assurance has been around for over 175 years, having been established during Queen Victoria’s early reign with a strong heritage founded on caring for our communities and a long history which started during the Industrial Revolution in Birmingham.

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

3As measured by the average return on the ABI UK Mixed investments 40-85%Shares sector, 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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