Illustrations projection rates

Our illustrations reflect the types of assets in the funds selected. Where the funds are of a more cautious or fixed interest nature we will use projection rates lower than the FCA standard rates. These are only assumptions and our current medium to long term view of the asset growth. These are not guaranteed and could be lower or higher than the current view. What you might get back depends on how these assets actually perform.

We have determined a long-term growth rate assumption for each class. In line with ABI industry guidance, we have used five main asset classes (tabled below). We will review these growth rate assumptions each year, as a minimum, and update them where necessary. The rates are based on our current medium to long-term view of asset growth.

Asset class growth rate assumptions Sterling Investment Bond
Equities 5.80%
Property 4.64%
Corporate Bonds 1.68%
Gilts/Government 1.04%
Cash/Money Market 0.48%

Using the long-term asset mix of each fund and applying the above growth rates determines a fund's appropriate growth rate.

Other companies may use different projection rates, as their long term view may differ from ours. This means that you cannot necessarily compare products from different companies based on the projected returns shown in their illustrations. If you do need help comparing products from other companies please speak to your usual financial adviser.

The documents below list the funds available through all versions of the Sterling Investment Bond and the fund specific projection rates that are currently used in our illustrations.

» Sterling Investment Bond – Fund specific projection rates – (Series 1)

» Sterling Investment Bond – Fund specific projection rates – (Series 2) ----coming soon