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With-profits funds

With-profits funds. For mutual prosperity

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.


You should be aware that the value of your investment may go down as well as up and you may get back less than invested.

Where does NFU Mutual’s with-profits fund invest?

NFU Mutual’s with-profits fund is invested in a broad mix of assets both in the UK and abroad. The assets include company shares, property, fixed interest securities, and deposits.

The asset mix backing the Capital Access Bond at 01/01/2017 was as follows:

Floating Rate Notes* 81.6%
Cash Deposits 18.4%
Total: 100%

*Floating Rate Notes are bonds that have a variable coupon.

The asset mix backing the with-profits liabilities (other than the Capital Access Bond) was as follows:

Property 18.0%
UK equities 41.0%
Overseas equities 17.0%
Index linked bonds 5.5%
Fixed interest gilts 6.0%
UK corporate bonds 6.1%
Overseas bonds 1.4%
Cash and other assets 5.0%
 Total: 100%

The mix of security ratings (the second highest if there is more than one rating) for our UK corporate bonds was as follows:

AAA                          6.3%
A 27.8%
BBB 31.9%
Sub 10%
Total: 100%

The asset mixes above were correct at 01/01/2017. It is possible that changes have occurred since that date, resulting from market movements, the investment of new money and changes in our general investment strategy.

Take a look at our With-Profits Guides for more information.

With-Profits guides

Take the time
to talk to us

NFU Mutual Financial Advisers* will help create a picture of what you want to achieve and devise a financial plan that could help you realise your dreams.


* Please note

When you contact us we'll explain the advice services we offer and the charges. NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers.

For security and training purposes calls may be recorded and monitored.