Pre-sale illustration projection rates
Changes to our projection rates
On Monday 13 September 2010 the projection rates used in our pre-sales illustrations were changed to reflect the types of assets in the funds chosen by your clients. This will give a more appropriate indication of the potential investment returns that could be achieved, after the impact of charges.
» More information on why these changes have been made
Asset class growth rate assumptions
How are the projections calculated?
Each fund’s growth rate is calculated using asset class growth rate assumptions and the strategic or long term asset allocation of the funds.
|
Equities |
7.65% |
|
Property |
6.40% |
|
Corporate Bond |
4.02% |
|
Gilts/Government Bonds |
3.04% |
|
Cash/Money Market |
3.04% |
Taking the percentage of investment in each fund, we calculate a mid-point growth rate and round the result down to the nearest 0.25%. The FSA’s standard mid-point growth rates are a maximum, so the mid-point growth rate is capped at 6% for taxed products.
Full list of fund projection rates as at 13 September 2010
» Sterling Investment Bond – fund specific projection rates
