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With-Profits Bonus Declaration

Over 2023, The Prudential Assurance Company Limited With-Profits Fund returned 3.6% (net of tax) and 4.3% (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 2024 annual bonus rates

 

Annual Bonus Rate

Most** Unitised (or accumulating With-Profits) With-Profits bonds

2.25%

Flexible Retirement Plan (including income drawdown) and Trustee Investment Plan (for all new business post 7/11/11)

2.55%

Corporate pensions (unitised)

3.00%

With-Profits Pension Annuity

1.75%

Most^ Unitised (or accumulating With-Profits) Personal Pensions

2.75%


**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 £2). With effect from 01/03/2020, the high tier bonus threshold is reduced from £6,000 to £2 implying all PSA/PIB business receive high tier bonuses from that date going forward.

^Most refers to all Capsil 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 2023, our globally diversified With-Profits Fund produced a positive return in changeable, and fast moving, economic conditions. So, this year:

  • Annual bonus rates have either been increased or maintained at the same level as those declared last year, which will continue to add to the guaranteed benefits of customers' plans.
  • Final bonus rates for most customers have increased when compared to those declared last year, which means that most customers will see an increase in the value of their plans compared to last year. Final bonus may vary and isn't guaranteed.
  • We're also delighted to have additional money in our With-Profits Sub Fund to share with some of our With-Profits customers at this bonus declaration which increases the unsmoothed value of their plans by 1.25%. The amount being shared is £1bn. The additional money shared is reflected in our final bonuses from this year. You shouldn't expect to get additional money in the future. There's a chance we might have to take back the additional money distributed this year (or in previous years) in future, if we needed to protect the interests of all our customers and the financial strength of our With-Profits Fund. Unless something very unusual happened, we wouldn't expect to have to do this. You can find out more details on our website at: pru.co.uk/aboutadditionalmoney

  • As our highly successful PruFund fund range (which includes PruFund Planet) is also written in the With-Profits Sub Fund, we've shared additional money with these customers by increasing the unit price by 0.9% on 27 February 2024.

  • This increase will apply to all onshore PruFund funds. Offshore bonds won’t share in the additional money.

In 2024, the team will continue to take decisions that allow them 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 customers.

Read more about With-Profits Bonus Declaration February 2024

Fund size

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

The total level of assets backing the With-Profits business in the Fund was £117bn at 30 June 2023. Note: this figure includes the assets backing the former Scottish Amicable Life Assurance Society business.

Fund Management

M&G Treasury and Investment Office (T&IO) 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 of the Fund is to maximise investment returns while maintaining an acceptable level of risk for the Fund. 


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

  1 yr Fund return% 5 yr Cumulative Fund return % 10 yr Cumulative Fund return % 5 yr Annualised Fund return % 10 yr Annualised Fund return %
Prudential With-Profits Fund (net)* 3.6 25.6 66.0 4.7 5.2
Prudential With-Profits Fund (gross)** 4.3 30.4 79.8 5.5 6.0
ABI UK – Mixed Investment 20% - 60% Shares Sector Average – Life Funds*** 5.7 12.3 28.3 2.4 2.5
ABI UK – Mixed Investment 20% - 60% Shares Sector Average – Pension Funds*** 6.8 16.1 37.0 3.0 3.2
FTSE 100 Total Return (Gross) 6.3 38.7 67.7 6.8 5.3
Morningstar 90 Days Notice (UK Savings £25,000+) Net 1.8 3.3 5.4 0.7 0.5
Morningstar 90 Days Notice (UK Savings £25,000+) Gross 2.3 4.2 6.8 0.8 0.7
UK Retail Prices Index 5.2 32.7 49.6 5.8 4.1


Source: Prudential, FE. All figures to 31 December 2023

* 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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