TEACHERS UNIT-LINKED

Teachers unit-linked policies investment information

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 Teachers unit-linked funds for the period 1 January 2023 to 31 December 2023. 
  • This includes sustainability information in accordance with the Task Force on Climate-related Financial Disclosure (TCFD) product reporting requirements. 

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.

Unit price history – Teachers unit-linked policies

The tables below show the unit prices, at the end of each of the last five calendar years, for unit-linked funds available for these Teachers unit linked products:

  • Capital Investment Bond
  • Investment Bond
  • Flexible Savings Plan
  • Personal Pension Plan
  • Free Standing Additional Voluntary Contribution Scheme (FSAVC) 
  • Stakeholder Pension

Unit prices

Take a look at the latest published unit prices for these products.
Capital Investment Bond, Investment Bond and Flexible Savings Plan
Personal Pension Plan and Free Standing Additional Voluntary Contributions (FSAVC)
Stakeholder Pension Plan

Asset allocation

Here you can find the types of asset that each of the Teachers unit linked funds invest in.

Further information

For more information on how Teachers unit-linked policies work please refer to:

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. 

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 reports aim 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.
  • Teachers unit linked policies may invest in more than one fund at a time and the Stakeholder Pension has lifestyling options. Please refer to the relevant reports for your policy. Please note, we do not provide TCFD product reports for funds where a sufficient level of climate data is not available. This currently applies to the Teachers Cash and Fixed Interest Funds.

Capital Investment Bond, Investment Bond and Flexible Savings Plan (Teachers Managed Fund) TCFD Product Report 2023

Personal Pension Plan and FSAVC (Teachers Pensions Managed Fund) TCFD Product Report 2023

Stakeholder Pension Plan (Teachers Stakeholder Managed Fund) TCFD Product Report 2023