Before we get started...
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.
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 | 14.3% |
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 | Investment return |
---|---|
Year to 31 December 2019 | 14.3% |
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% |
TCFD product report
Our product report provides information in accordance with the requirements of the Task Force on Climate-related Financial Disclosures (TCFD)
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
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.