With-Profits Bonus Declaration

Over 2018, The Prudential Assurance Company Limited With-Profits Fund returned -2.2% (net of tax) and -2.8% (gross of tax), both before charges and the effects of smoothing*. Please see information specific to your Plan to find out more.

*This describes the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers.

Please remember that past performance is not a reliable indicator of future performance.

On the Bonus Declaration literature page, you'll find literature and sales aids that you can use to discuss bonus declaration with your clients.

Summary of 2019 annual bonus rates

  Annual bonus rate
Most* Unitised (or accumulating With-Profits) With-Profits bonds 1.50%
Flexible Retirement Plan (including income drawdown) and Trustee Investment Plan (for all new business post 7/11/11) 1.05%
Corporate pensions (unitised) 1.75%
With-Profits Pension Annuity 0.25%
Most^ Unitised (or accumulating With-Profits) Personal Pensions 1.50%

*Most refers to Prudence Bond (Optimum Return) both no initial charge and initial charge versions, International Prudence Bond & Prudential International Investment Bond (Euro), International Prudence Bond & Prudential International Investment Bond (US) and PSA/PIB (Fund over £6000).

^Most refers to all Capsil and OPAL personal pensions. It also applies to Prudential Series A and Premier Plans (including TIP Series A for business sold between 01/01/2003 and 06/11/2011) written on or after 01/01/2003.

In 2018, there were lots of ups and downs in financial markets. These impacted our With-Profits Fund because it invests globally in many different assets. But we’re pleased we’ve been able to provide some protection to our investors from the extremes of market volatility.

We aim to provide fair payouts based on what the Fund has achieved and we’ll continue to smooth some of the extreme highs and lows of investment performance.

In 2019, we’ll continue to manage the Fund prudently. We’ll aim to secure the highest total return for the Fund (after any tax and investment expenses) while maintaining an acceptable level of risk and protecting our planholders.

Read more about With-Profits Bonus Declaration February 2019

Fund size and rating

The Prudential Assurance Company Limited With-Profits Fund is one of the largest with-profits funds in the UK.

The total level of assets backing the with-profits business in the Fund was £104.3bn at 31 December 2018.

The Prudential Assurance Company Limited is rated A+ for financial strength by Standard & Poor's, as at December 2018. This is one of the highest ratings currently given to any UK Life Assurance Company.

Fund Management

Prudential Portfolio Management Group are our in-house asset-allocation experts in the UK. They select a wide range of assets to hold in the With-Profits Fund, in line with the Fund's objective. The aim is to maximise investment returns while maintaining the financial security of the Fund. 

PAC With-Profits Fund - comparative cumulative and annualised returns over 1, 5 and 10 years

  1 Year return % 5 Years cumulative return % 10 Years cumulative return % 5 Years annualised return % 10 Years annualised return %
Prudential With-Profits Fund (net)* -2.2 32.2 105.0 5.7 7.4
Prudential With-Profits Fund (gross)** -2.8 37.8 129.5 6.6 8.7
ABI UK - Mixed Investment 20% - 60% Shares Sector Average - Life Funds*** -5.4 14.2 67.4 2.7 5.3
ABI UK - Mixed Investment 20% - 60% Shares Sector Average - Pension Funds*** -5.3 18.0 82.6 3.4 6.2
FTSE 100 Total Return -8.7 20.9 121.4 3.9 8.3
Morningstar 90 Days Notice (UK Savings £25,000+) Net 0.4 2.0 4.2 0.4 0.4
Morningstar 90 Days Notice (UK Savings £25,000+) Gross 0.5 2.5 5.3 0.5 0.5
UK Retail Price Index 2.7 12.7 34.1 2.4 3.0

Source: Prudential, FE. All figures to 31 December 2018
* With-Profits performance is net of tax and before charges and the effects of smoothing. The returns shown are for the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers.
** With-Profits performance is gross of tax and before charges and the effects of smoothing. The returns shown are for the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers.
*** ABI UK – Mixed Investment 20-60% Shares – The Association of British Insurers (ABI) has a classification system whereby the performance of funds that have similar asset allocations are grouped together to give an average performance figure. This is known as the sector average. It's important to note that some if not all of the Funds comprising this sector average will already have fund management charges deducted from their performance.

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