A With-Profits fund is a pooled investment. The money you pay into a With-Profits investment or savings plan is added together with the payments of other customers. This is then invested in a mixture of shares, bonds, property and cash. We currently have around £3.1 billion invested in our With-Profits Funds.
With-Profits policies share in the profits and losses of the With-Profits fund by adding bonuses to each policy. If the investment performs well, you may get an annual bonus each year. The level of these annual bonuses are not guaranteed, however once they are added they cannot be removed and are guaranteed at certain points, which can make With-Profits investments attractive. You may also benefit from a 'terminal' bonus when the policy comes to an end.
As with all With-Profit investments, your investment with us is subject to a 'smoothing' process. In simple terms, some of the return from the investments in the fund is kept back in the years when the fund does well and is used to boost the return on the underlying fund in years when it does poorly.
This is designed to offer a smooth level of returns each year. However, it's important to remember that the value of the investment can go down and that you can get back less than invested.
NFU Mutual Financial Advisers will guide you through the things you need to consider when investing your money. NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers.