Annuity Plan Bonus: Investment Strategy

Storebrand Asset Management manages Nordben’s 7 Annuity Plan policyholders' funds.

The Annuity Plan policyholders' funds currently invest in long-term fixed interest bonds, equity funds and cash. Nordben aims to invest an appropriate percentage of its assets in fixed interest bonds so that it can broadly secure the guarantees underlying the Plan.

Having prioritised covering these guarantees, the remaining funds are then invested to seek the best return for policyholders within an acceptable level of risk.  Nordben currently invests the funds in a mixture of equity funds and cash.

The bonus is determined having regard to consumer price inflation for the period September to September in the relevant currency with the aim of providing an overall return of 2% (1% for CHF) above inflation. This is a target and not a guarantee, the bonus could be higher or lower than the target. The bonus target may change over time.