TEACHERS WITH-PROFITS

Teachers with-profits 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 funds for Teachers with-profits policyholders, 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.

Standardised performance of the Teachers with-profits fund for conventional with-profits policies

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

Year Investment return % 
Year to 31 December 2023  10.8%
Year to 31 December 2022  -14.4%
Year to 31 December 2021  7.8%
Year to 31 December 2020  10.5%
Year to 31 December 2019  15.1%

Year Investment return % 
Year to 31 December 2023  10.8%
Year to 31 December 2022  -14.4%
Year to 31 December 2021  7.8%
Year to 31 December 2020  10.5%
Year to 31 December 2019  15.1%

Inherited estate fund performance review

This is a separate fund for with-profits policies originally provided by Teachers Assurance which includes the ‘inherited estate’ and allocations of special bonus.

This fund has a long-term investment strategy of investing in a mix of fixed-interest securities and cash.

For more information on the Teachers with-profits fund and separate inherited estate fund please see the guide ‘Your guide to how we manage the Teachers Assurance Fund for with-profits business'.

Standardised performance for the Teachers inherited estate fund

These figures show the investment return (before tax and charges) on the Teachers inherited estate fund each calendar year for the last five years

Year Investment return % 
Year to 31 December 2023  6.2%
Year to 31 December 2022 -12.0%
Year to 31 December 2021 -2.6%
Year to 31 December 2020  5.2%
Year to 31 December 2019  6.0%

Year Investment return % 
Year to 31 December 2023  6.2%
Year to 31 December 2022 -12.0%
Year to 31 December 2021 -2.6%
Year to 31 December 2020  5.2%
Year to 31 December 2019  6.0%

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. 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 Inherited Estate Fund. 

Teachers With-Profits Fund TCFD Product Report 2023

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. 

Asset allocation

The types of asset that the Teachers with-profits funds and the inherited estate fund invest in can be seen on the with-profits asset allocation page.

Unit price history - Teachers unitised with-profits policies

Under each of the Teachers unitised with-profits policy types listed below are tables that show the unit prices at the end of each of the last five calendar years. Just click on the policy type to see the tables.

Unitised with-profits policies hold units in the two funds:

  • The Teachers with-profits fund - this provides the main benefits of Teachers with profits policies.
  • The Teachers inherited estate fund - where the inherited estate and allocations of special bonus are invested.

For more information on how Teachers unitised with-profits policies work please refer to:

Unit prices

Take a look at the latest published unit prices for these products.
Teachers Anniversary Bond
Regular Savings Plan
Guaranteed Savings Plan (Sold until August 2012)
Guaranteed Savings Plan (Sold from September 2012)
Tax Exempt Savings Plan
Tax Free Savings Plan (Sold January 2007 to August 2012)
Tax Free Savings Plan (Sold from September 2012)
Guaranteed Growth Bond – 10 year term, 10% Guarantee (Sold from February 2014)
Guaranteed Growth Bond – 10 year term, 15% Guarantee (Sold from February 2014)
Guaranteed Growth Bond – 10 year term, 20% Guarantee (Sold from February 2014)
Guaranteed Growth Bond – 10 year term, 25% Guarantee (Sold from February 2014)
Guaranteed ISA
Guaranteed Growth ISA – 10 year term, 10% Guarantee (Sold from February 2014)
Guaranteed Growth ISA – 10 year term, 15% Guarantee (Sold from February 2014)