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 performance of the assets held in the Liverpool Victoria Financial Services Limited main with-profits fund, for the period 1 January 2024 to 31 December 2024. This fund backs most of the with-profits policies sold by LV=.
- This includes sustainability information in accordance with the Task Force on Climate-related Financial Disclosure (TCFD) product reporting requirements.
- Different investment information pages are available for the LV= All-In-1 Investment Bond, Guaranteed Capital Bond, With Profits Income Bond, Flexi Guarantee Plan, Flexible Guarantee products, Smoothed Managed Funds products and the LV=ISA.
2024 performance review
2024 continued where 2023 left off with most asset classes ending the year in positive territory. Global equities performed strongly, and only UK Gilts detracted in the Fixed Income space. Global Equities were up 17.5% while Global Bonds were up 3.0%.
In a historic year with over 65 national elections, it was Donald Trump’s US election victory that had the starkest impact on markets. His expansionary fiscal policy and protectionist agenda were welcomed by surging US markets already thrilled by the prospect of easing monetary policy. The S&P500 closed the year up 27% in Sterling terms.
In UK markets, the FTSE All Share was slightly negative over the last quarter but delivered a good return for the year at 9.5%. The interaction between UK fiscal policies that strangle growth whilst driving inflation, will damage expectations for further loosening of monetary policy.
In a good year for growth investment style, allocations to Emerging Markets and Asia performed well. The MSCI Emerging Market returned 9.4% in Sterling terms whilst MSCI Asia was 14%.
In the bond markets, the 10-year yields for US Treasuries and UK Gilts, both ended the year at 4.57%. Over 2024, this represented a notable rise for both markets, though higher in the UK, fuelled by investor anxiety over the £40bn tax increases announced by the Chancellor. Across our portfolios, weakness in government bonds was broadly offset by positive performance from allocations to Corporate Bonds, High Yield Bonds and Emerging Market Debt.
Over the year, there were periods of significant volatility – in August and also in December – LV funds navigated those periods well and our 1-year performance was very strong across the range.
Standardised performance for the main 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 2020 | 8.2% |
| Year to 31 December 2021 | 7.0% |
| Year to 31 December 2022 | -14.2% |
| Year to 31 December 2023 | 9.4% |
| Year to 31 December 2024 | 8.2% |
| Year | Investment return |
|---|---|
| Year to 31 December 2020 | 8.2% |
| Year to 31 December 2021 | 7.0% |
| Year to 31 December 2022 | -14.2% |
| Year to 31 December 2023 | 9.4% |
| Year to 31 December 2024 | 8.2% |
TCFD product report
Our product report provides information in accordance with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD)
- Sustainability is an integral part of the way we do business. Our TCFD product report aims to give our members, customers, advisers and other stakeholders a greater understanding of the greenhouse gas emissions associated with our investment funds and the potential climate related risk factors.
- Further information on our approach and what we are doing at LV= to tackle environmental, social and governance issues can be found in our Sustainability Report.
- Please follow the link below to access the information on your fund.
Asset management
The primary asset manager for the fund is 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. As the largest asset manager in the world, BlackRock’s considerable investment and technological capabilities help to provide good value for LV= policyholders.
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.