What are the changes to the Wealth Management Portfolio illustration growth rates?

Back to results

On 4 August 2017, we’re changing the growth rates customers will see on their Wealth Management Portfolio illustrations. Here’s a short explanation of the changes we’ve made.

What are growth rates?

Growth rates are used in personal illustrations for our products to provide an indication of what an investment might be worth in the future. It’s important to remember that these are assumptions and actual returns may be more or less than those shown.

What are we doing? 

The Financial Conduct Authority (FCA) requires us to provide illustrations using rates of return that accurately reflect the investment potential of a product, subject to new maximum rates of:

  • 2% - low;
  • 5% - mid, and
  • 8% - high.

All firms are required to carry out projections using rates of growth that they consider appropriate, where the firm believes the FCA standard rates are considered too high. As firms may have differing views, this means firms might not use the same rate of growth for projections, and their charges may vary.

What this means for you?

Our new growth rates won’t affect what you'll get back as this depends on actual fund performance. 

The value an investment can fall as well as rise for a number of reasons, for example market and currency movements. You could get back less than originally invested.

Your questions answered

If you have any further questions about growth rates, please call our Client Relations Team on 08456 000 173 – Monday to Friday, 8.30am to 5.30pm.