The Teachers Assurance Fund holds the with-profits policies transferred from Teachers Assurance to LV=. The policies and assets in the fund are held separately from the rest of LV=. We're aiming to distribute the excess assets held in the Teachers Assurance Fund to the with-profits policyholders over time as a Special Bonus.
There was an initial distribution in 2016 with further annual distributions also expected.
There aren’t any shareholders in the Teachers Assurance Fund – which means that we use all the profits to benefit the with-profits policyholders invested in the Fund.
The LV= With-Profits Committee, which is a sub-committee of the main LV= Board, provides independent judgment on material issues in assessing compliance with the Teachers Assurance Fund PPFM. The With-Profits Committee must include a Teachers Nominee who is independent of LV=.
The TA Fund is an investment fund where we combine your money with other investors’ money and manage it on your behalf. The asset management of the TA Fund, other than some of its property investments, is currently undertaken on our behalf by BlackRock Investment Management Limited. They are responsible for the day-to-day management of the assets, operating in accordance with our investment strategy.
Our aim is to maximise long-term returns subject to ensuring that we can meet our obligations to policyholders and to remain financially strong. In order to manage this we split the assets of the TA Fund into two pools of assets as follows:
The with-profits fund is the continuation of the pool of assets TPS used to help determine policy benefits prior to the transfer to LV=. It is split into three sub-funds for different products which all have the same target asset allocation. The three sub-funds are:
The actual asset allocations of the sub-funds differ from time to time for practical reasons.