With-profits investment

With-profits from Aviva

Information for ex-Friends Life customers
Friends Life is now part of Aviva. Your with-profits funds havenʼt changed and you can find all the information you need on these pages, including the Principles and Practices of Financial Management (PPFMs), customer friendly guides and supplementary fund information. All contact details have stayed the same and can be found on our contact us page.

With-profits policies are designed for the medium to long term, ideally at least five to ten years. If you have a with-profits pension, bond or savings policy, we pool your money with that of other customers in one of our with-profits funds and that money is invested in a mixture of shares, bonds, property and money market investments.

The value of your with-profits policy can grow through yearly bonuses (or for the Secure Growth Fund, interest rates) and, for most types of policy, there is the possibility of a 'final' bonus when your policy comes to an end. Bonuses are not guaranteed and bonus rates can go down as well as up. However, once added they can't be taken away. There is a risk that the value of your investment could go down as well as up and you may get back less than you invested.

With profits investment returns are shared out as bonuses, of which there are two main types, regular (or annual) bonus and final (or terminal) bonus.

Regular bonuses (or regular interest for the Secure Growth Fund) can be added to your policy each year (or more often). Many with-profits policies guarantee a minimum payout on specified dates or events and the addition of regular bonuses increases this minimum level of payout.

For some types of policy, a final bonus may be added when your policy ends or, for unitised with-profits policies, if you move out of with-profits by switching to another fund. However, if you move your policy out of with-profits when the minimum payout is not guaranteed (for example by cashing it in, retiring early or switching funds), the value of your policy may be reduced.

A Market Value Reduction (MVR) can apply to some types of with-profits funds. An MVR is an adjustment factor that can be applied to those leaving a with-profits fund at times other than those specified in the contract. This ensures that those leaving unexpectedly do not receive more than their fair share of the underlying investment, and therefore enables us to treat with-profits customers fairly.

New to investing in with-profits?

If you’re interested in investing in our With-Profit Fund, you can use the links below to find out how the fund works, see if it’s the right option for you and how to invest.

Existing customers

If you are already invested in our With-Profit Fund, use the links below to see how it’s performing, read the latest announcements and get answers to any questions you may have.

The value of investments can fall as well as rise and is not guaranteed. This means you could get back less than you invest.

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