With Profits Fund – Performance Update
18 March 2020
In light of the continued turmoil in global markets, a further update on the performance of our With Profits Fund – the Order Insurance Fund (OIF) is provided.
Global Equity markets have continued to fall sharply, with short-lived occasional respite as markets rebound for a day on positive news. UK and other European markets are down over 30% year-to-date. US markets have also fallen, but to a lesser degree, with the DOW and S&P down 20-25%.
The OIF has been underweight in equities for several months, but the speed and severity of these falls have still impacted the fund. With consideration to current market volatility and uncertainty about the impact of the pandemic on the global economy, we have made the decision to de-risk the fund by selling all equity and convertible bond positions.
The fund still benefits from a diverse asset mix including Gilts, UK Treasury Bills and Corporate Bonds as well as Property and SME loan funds. These other assets have performed well during this difficult period and we believe will give protection to asset values at a time of global uncertainty.
The position will be monitored on an ongoing basis by our expert internal Investment Management team and by AXA Investment Managers with a decision to re-risk and invest back into equities at a time of more stability.
12 March 2020
In light of the recent turmoil in global markets, we felt it important to provide an update on the performance of our With Profits Fund – the Order Insurance Fund (OIF) since the start of the year.
Global Equity markets have fallen steeply, especially over the past 3 weeks, with UK and other European markets down 20% year-to-date. US markets have also fallen, but to a lesser degree, with the DOW and S&P down 13-15%. The OIF has a relatively low weighting of equities – currently 16%. The fund benefits from a diverse asset mix outside of Equities, including Gilts, Corporate Bonds and Convertible Bonds, as well as Property and SME loan funds. These other assets have performed well during this difficult period, with the fund value actually increasing by 1%.
Together with our investment managers, AXA IM, we continue to monitor the exposure to each asset class on an ongoing basis and will provide further updates in due course.
We hope this provides reassurance to you during this uncertain period.