In 2024 concerns over interest rate expectations continued as geopolitics and ongoing military conflict dominated the news. Overall, many markets saw growth in an unpredictable environment. Our With-Profits customers have benefitted from investing in a large, multi-asset, globally diversified fund during this period, with our fund managers seeking out opportunities across a wide range of different asset types. A positive return of 7.3% (gross of tax) was achieved.
2024 was a year of positive performance and economic growth in an uncertain economic environment. Some key themes were:
Meanwhile bond markets, while mostly positive, were more muted. Our With-Profits Fund invests in a wide range of globally diversified assets so was able to capture positive returns in some places and avoid difficulty in others. The Fund’s performance has added to its already strong longer-term record, relative to its peers.
We’ll continue to source and invest in assets that build diversification and help meet the objective of securing the highest total return for the Fund (after any tax and investment expenses) while maintaining an acceptable level of risk and protecting our customers. We’ll also continue to consider our Environmental, Social and Governance aims as they apply to the Fund.
The value of any investment can go down as well as up so your customer might not get back the amount they put in. Past performance is not a reliable indicator of future performance.
As at 31 December 2024 and 2023, the main asset pool within the Prudential Assurance Company Limited With-Profits Fund, which is relevant to the vast majority of our customers, had the following asset allocations:
| Asset | 31/12/2024 (%) | 31/12/2023 (%) |
|---|---|---|
| UK Equities (listed) | 10.1 | 11.8 |
| Overseas Equities (listed) | 26.9 | 26.9 |
| Property | 13.2 | 13.4 |
| Alternative Assets | 15.0 | 12.5 |
| Corporate Bonds | 29.8 | 30.4 |
| Cash & Receivables | 5.0 | 5.0 |
Source: Prudential
Clive Bolton, Chief Executive Officer, M&G Life, said: “The Prudential With-Profits Fund delivered a strong return in 2024 despite ongoing uncertainty due to political events, conflicts and higher interest rates. Our global diversification paid off as most of our fixed income and regional equity portfolios performed well and we saw positive returns from UK real estate. Our careful, long-term investment approach keeps providing good customer outcomes and looks to protect those customers from short-term adverse movements in markets.
The Fund is the biggest With-Profits fund in the UK, giving us the ability to continue to invest in a wide range of assets and companies. We will monitor markets and understand any opportunities or risks that emerge over 2025 to best position the Fund to deliver for our customers.”
Read more information on the 2025 With-Profits Bonus Declaration.
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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at 5 Central Way, Kildean Business Park, Stirling, FK8 1FT. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company Limited. The Prudential Assurance Company Limited and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc which is a holding company registered in England and Wales with registered number 11444019 and registered office at 10 Fenchurch Avenue, London EC3M 5AG, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.
