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).
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.
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
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.
Prudential Portfolio Management Group
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.
FTSE International Limited ("FTSE") © FTSE. "FTSE®" is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and / or data underlying data contained in this communication. No further distribution of FTSE Data is permitted without FTSE’s express written consent. FTSE does not promote, sponsor or endorse the content of this communication.