Personal Business Home Log in Search Menu With Profits Fund Investing made smoother The With Profits Fund underpins many of Wesleyan’s plans and policies. It aims to provide steady investment growth by spreading money across various asset classes, and by ‘smoothing’ returns to help mitigate market volatility. The fund also aims to deliver regular and final bonuses - allowing you to take your share of Wesleyan’s business profits. Bear in mind the value of investments and any income can go down as well as up. You may get back less than you invested. On this page About smoothing Bonuses explained What's MVR? Watch the video Ways to invest Info for investors About smoothing Smoothing is one of the key differences between the With Profits Fund and most other types of investment fund. Simply put, it’s a mechanism to reduce the effect of short-term market fluctuations. It helps you worry less about the ups and downs of investing. Here’s how smoothing works. When the With Profits Fund is performing particularly well, we don’t pass all the returns to investors straight away. Instead, we hold some back in the fund – ready to apply to your account and cushion any fall in value during times of poorer performance. Bonuses explained Regular bonuses Where possible, we try to add a regular bonus to With Profits plans and policies each year. We can’t guarantee to pay a bonus every year, but when we do, bonuses are guaranteed and can’t be taken away (unless a Market Value Reduction is applied). The amount of regular bonus we add depends on the annual bonus rate. The bonus rate is reviewed at least once per year and varies depending on the type of product you hold. Below you can see our recently applied bonus rates. Annual bonus rates for unitised With Profits policies 2020 2019 2018 2017 2016 2015 Life Fund 1.25% 1.25% 1.75% 2.0% 2.50% 2.50% With Profits ISA 1.5% 1.75% 2.25% 2.50% 3.0% 3.0% Pension Fund (series 1) 2.25% 2.50% 3.0% 3.25% 3.75% 3.75% Pension Fund (series 2) 1.5% 1.75% 2.25% 2.50% 3.0% 3.0% The annual bonus rates above are effective from 2nd April the following year. For example, 2020 rates came into effect from 2nd April 2021. The bonus rates are gross of annual management charges (AMC). Final bonuses The value of Wesleyan’s With Profits Fund depends not just on the performance of our investments, but also on the profits and losses from across our business (including our subsidiary companies). As a mutual, we don’t have shareholders to pay, so we can pass our profits to our investors instead. This often comes in the form of a final bonus. Though not guaranteed, a final bonus can enhance the cash-in value of your investment significantly above the regular bonuses that are paid. Market Value Reduction (MVR) If you’re investing in the With Profits Fund, you should be aware of what a Market Value Reduction (MVR) is. During periods of extreme stock market volatility, we might need to apply an MVR to protect our investors. An MVR is an adjustment that can be applied to the value of your investment if you choose to cash-in or withdraw from your policy at certain times, reducing how much you get back. It protects those still invested in the fund when a high volume of withdrawals are made. MVRs are extremely rare, and at Wesleyan, we haven’t applied one since the UK stock market crash in 2009. We are long-term investors with a track record of only applying an MVR when absolutely necessary. The With Profits Fund, in a nutshell… Here’s a short video to explain how the With Profits Fund works: Ways to invest in the With Profits Fund The With Profits Fund is available through a range of Wesleyan’s investment products, and a number of our life and pensions plans. With Profits ISA A stocks and shares ISA which allows you to invest up to £20,000 per tax year in the With Profits Fund. Find out more Personal Pension Plan Invest for retirement through a Personal Pension Plan from Wesleyan and you can choose from up to 12 funds, including the With Profits Fund. Find out more Capital Investment Bond An investment plan designed for those willing to invest a minimum of £7,500 over the medium to long term. Find out more Flexible Savings Plan The Flexible Savings Plan lets you invest in up to 12 funds (including With Profits) through a mix of regular and one-off payments. Find out more Frequently asked questions What does the With Profits Fund invest in? Who manages the With Profits Fund? What’s the latest fund unit price? Information for investors If you already have a plan or policy invested in the With Profits Fund, you can find a range of details including performance data, charge information and asset allocation by viewing the appropriate fund factsheet. These can be found on the Fund Prices page. You may also want to read our booklet on ‘How the With Profits Fund Works’. There are three versions of this booklet, depending on what type of policy you hold: For Unitised With Profits policies PDF (202KB) For products where premiums are used to buy units. All new policies will fall into this category. For Conventional With Profits policies PDF (411KB) For products where premiums are not used to buy units. This will only apply to older policies. Medical Sickness Society PDF (694KB) For policies purchased from The Medical Sickness Society before our merger in July 1997. If you are unsure about what type of policy you have with us, please contact your Wesleyan Financial Services Consultant or give us a call on 0800 058 2965. If you have more than one policy with us, you may need to read more than one of the guides. PPFM documents All insurance companies issuing With Profits policies are required to establish and maintain their 'Principles and Practices of Financial Management' (PPFM). These documents provide more details than our short guides on how we manage our With Profits business. There are two versions, one for each of our funds: Wesleyan PPFM - Open Fund July 2021 PDF (370KB) Wesleyan PPFM - Medical Sickness Fund July 2021 PDF (259KB) Summary of Changes July 2021 PDF (181KB) Every year, we report to With Profit policyholders on our compliance with PPFM. The latest reports are below: PPFM Compliance Report to Policyholders 2020 - Open Fund PDF (193KB) PPFM Compliance Report to Policyholders 2020 - Medical Sickness Fund PDF (184KB) Back to top Products & services Financial advice Savings & investments Pensions & retirement Protection Mortgages Insurance Business For your profession Dentists Doctors Teachers Useful information About us News Insights Students Wesleyan Bank Practice Plan DPAS Medenta Financial advice that's all about you Wesleyan Financial Services Consultants help doctors, dentists and teachers achieve their goals through specialist financial advice. Book an appointment Contact us Careers Sitemap Privacy Legal Security Accessibility Modern Slavery Act Cookies 'WESLEYAN' is a trading name of the Wesleyan Group of companies. Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. 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