Generic With Profits		Prudential International		Norwich Union International

The Dominion X Fund range invests into two of the world's most successful and largest With-Profit funds: these With-Profit funds have extensive track records of success and dependability. In both cases the insurance companies offering these products are amongst the strongest financial institutions in Europe.

In this section you will find a description of what is a With-Profit fund, as well as a description of how it works. This section also provides you with information on our With-Profit providers, Prudential and Norwich Union International.

About With-Profit

Key facts

The size of the UK With-Profit market by 31.12.2004 was £ 293 billion*
(*Source: Association of British Insurers In Force Life and Pensions Business 2004)

With-Profit Fund Characteristics

With-Profit funds are a well established asset class, many with an investment history in excess of 100 years.
With-Profit funds are exclusively made available by insurance companies and available for investment through an insurance policy.
With-Profit funds follow a diversified investment strategy in equities, fixed interest securities, property and cash while providing a smoothed and low volatility return over the medium to long term.

1. Risk profile
   With-Profit funds are a medium risk asset class which aims to provide stable returns over the medium to long term. Shorter term investments in these assets are exposed to a greater risk of a Market Value Reduction being applied.
2. Investment objective
   The investment objective of With-Profit funds is to achieve capital appreciation over the medium to long term commensurate with a balanced portfolio of investments, including substantial holdings in equities, while (where appropriate) seeking to smooth the return to investors by retaining reserves during years of higher performance and paying from these reserves in years of lower or negative performance.
3. Investment Assets
   The assets held within a With-Profit fund are usually divided between equities, fixed interest securities, property and cash.


With-Profit Fund Valuation

4. Fund Valuation
   The value of an investment in a With-Profit fund is generally determined by multiplying the number of units held by the unit price. In addition, the insurance company may apply a terminal bonus that is designed to reflect overall capital growth of the assets of the With-Profit fund in excess of the growth reflected in the unit price. A terminal bonus is generally expressed as a percentage of the unit value and is usually specific to the date of investment in the With-Profit fund.
5. Surrender value
   The surrender value of an investment in a With-Profit fund is generally determined by subtracting from the Fund Valuation any early redemption charges and MVR applicable.
6. Market Value Reduction or MVR
   When units of a With-Profit fund are surrendered, the insurance company reserves the right to make a downward adjustment to the value of units to account for any under performance of the assets during the relevant period of investment when compared to growth reflected in the unit price. This MVR may be applied at any time and the amount of any MVR is at the discretion of the insurance company but is subject to published principles and practices. Usually an MVR will be applied for as long as the underlying assets of the With-Profit fund continue to under perform the unit price or in order to protect the interests of policyholders remaining in the With-Profit fund. A MVR is generally expressed as a percentage of the unit value and is usually specific to the date of investment in the With-Profit fund.