RNPFN With-Profits

RNPFN with-profits fund investment information and Annual Reviews

Report overview

Before we get started...

  • This information does not constitute investment advice and we recommend that you speak to a suitably qualified financial adviser before making any investment decision based upon this, or any other information.
  • The information below gives an overview of the assets held in the RNPFN with-profits fund, for the period 1 January 2023 to 31 December 2023. This fund backs the with-profits polices sold by RNPFN.
  • You'll also find the latest Annual Review documents for RNPFN with-profits policyholders.

2023 performance review

2023 was a welcome relief for investors in comparison to 2022 as most asset classes posted positive returns. Global equities and bonds performed strongly, returning 22.2% and 5.7% over 2023, respectively.

In Q4 of 2023, markets rallied strongly, with inflation falling by more than estimated by the market (US inflation fell to 3.1% in Q4 2023). This signalled the end of the current interest rate hiking cycle and increased the likelihood of rate cuts in 2024. This was the catalyst for a rally in both equities and bonds.

The main performance drivers included:

  • Our bias to “Growth” and “Quality” styles was very positive over 2023; “Growth” stocks (like those in the technology sector) outperformed “Value” stocks (such as oil companies and banks) over the year, returning 32.1% and 8.8% respectively. 
  • A global diversified investment strategy proved beneficial, as global equities returned 22.2% over the year compared to 7.9% for UK equity. 
  • The US Equity market had outstanding performance over the year, registering a 26.3% return. Significant rises in the price of the “Magnificent Seven” technology stocks (Apple, Amazon, Alphabet, Meta, Microsoft, Nvidia and Tesla) accounting for most stock-market gains. 

 

  • Japan’s export-heavy equity market was strong, registering 25.9% gains over the year, supported by a weaker Yen as the Bank of Japan largely maintained its ultra-loose monetary policy stance, and improved governance incentivised companies to spend their balance sheet liquidity. 
  • European equities performed well in Q1 2023 due to falling wholesale gas prices and the reopening of China which is one of Europe’s main export markets. This fell away in Q3 in line with most other equity markets, and rebounded in Q4, with strong performance in November and December, with 1 year performance at 18.5%.
  • Bond market performance was mixed. The “higher for longer” interest rate narrative was a headwind for much of 2023. Towards the end of 2023, markets changed tone somewhat, anticipating that the end of the rate hike cycle had been reached. This was a positive driver for bond markets, helping to retrace some of the losses made earlier in 2023.

Standardised performance for the RNPFN with-profits fund

These figures show the investment return (before tax and charges) on the with-profits fund each calendar year for the last five years

Year Investment return 
Year to 31 December 2019 12.1% 
Year to 31 December 2020  7.7% 
Year to 31 December 2021 2.6%
Year to 31 December 2022 -15.6%
Year to 31 December 2023 9.2%

Year Investment return 
Year to 31 December 2019 12.1% 
Year to 31 December 2020  7.7% 
Year to 31 December 2021 2.6%
Year to 31 December 2022 -15.6%
Year to 31 December 2023 9.2%

Responsible investing

Responsible investment encompasses all Environmental, Social and Governance (ESG) considerations. 

Our Responsible Investing Approach ensures we work closely and collaboratively with our external asset managers to ensure ESG considerations are firmly embedded in the management of our investments, as we believe we have an obligation to our members to invest their money responsibly. By doing so, we strive to deliver strong and stable member and customer value and achieve this in a way that protects and nurtures our planet for both current and future generations.

In accordance with the Taskforce on Climate-related Financial Disclosure (TCFD) regulations, we are currently working on more in depth reports on the climate performance of our savings and investments products. These will be available soon on LV.com.

Asset management

  • During the first half of 2024 the primary asset manager for the fund is changing from Columbia Threadneedle Investments to BlackRock. The primary asset manager is responsible for the day-to-day management of the assets in the fund, operating in accordance with our investment strategy. 

Engagement Policy

Engagement Policy

LV= has developed an Engagement Policy that demonstrates compliance with the Shareholder Rights Directive II (“SRD”). The purpose of an Engagement Policy is to encourage a responsible investing focus considering both environmental and social issues and to promote transparency. Our asset manager, BlackRock, is fully compliant with the SRD and their Engagement Policy is found on their website.

Read our Engagement Policy

Our 2022 Annual Review

Our 2021 Annual Review