2009 Bonus Overview and Asset Allocation
The tables below provide an up to date summary of our asset allocation and annual returns for the assets underlying our products, as at 31 December 2009.
Asset Allocation as at 31 December 2009:
Past performance is not an indicator of future performance.
| Product | Fixed interest incl Cash (%) | UK Equities (%) | Overseas Equities (%) | Property (%) | Other (%) |
| Bonds with 10th anniversary guarantee (available Oct 2003 to Sep 2005)** | 46% | 23% | 13% | 14% | 4% |
| Capital Protection Growth Bonds (pools from May 2008 to December 2008) | 44% | 26% | 15% | 15% | 0% |
| Capital Protection Income Bonds (pools from May 2008 to December 2008) | 54% | 21% | 10% | 15% | 0% |
| Capital Protection Growth Bond (January 2009 and later) | 49% | 16% | 18% | 17% | 0% |
| Capital Protection Income Bond (January 2009 and later) | 54% | 16% | 13% | 17% | 0% |
| Capital Protection Plus Growth Bond (from November 2008 to 31 December 2009, excluding those invested in Generation 2 (GEN.2))* | 49% | 16% | 18% | 17% | 0% |
| Capital Protection Plus Income Bond (from November 2008 to 31 December 2009, excluding those invested in Generation 2 (GEN.2))* | 54% | 16% | 13% | 17% | 0% |
| Capital Protection Plus Growth Bond (Generation 2)* | 60% | 19% | 11% | 10% | 0% |
| Capital Protection Plus Income Bond (Generation 2)* | 65% | 16% | 10% | 9% | 0% |
| Other Income Bonds (dated April 2002 and later) and Investment Bonds (dated July 1997 or later and switched into With Profits in 2003 or later) | 54% | 21% | 10% | 15% | 0% |
| Other Life Policies | 44% | 26% | 15% | 15% | 0% |
| With Profits Annuities** | 24% | 35% | 21% | 20% | 0% |
| Adaptable Pension Plan with CAI | 50% | 23% | 14% | 13% | 0% |
| Other Pension Policies | 54% | 21% | 13% | 12% | 0% |
* The Asset Allocation changed on 1 December 2009. For more information please read the following news article.
** The asset allocation and investment returns for these plans depend upon the product type held and the date the investment was made. The figures shown are averages for all types and dates.
Annual Returns for the assets underlying these products over the last seven years:
| 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | |
| Bonds with 10th anniversary guarantee (available Oct 2003 to Sep 2005) | 0% | 10% | 15% | 9% | 4% | -15% | 9% |
| Capital Protection Growth Bond (invested in from May – December 2008) | - | - | - | - | - | -14% | 12% |
| Capital Protection Income Bond (invested in from May – December 2008) | - | - | - | - | - | -13% | 10% |
| Capital Protection Growth Bond (January 2009 and later investments) | - | - | - | - | - | - | 10% |
| Capital Protection Income Bond (January 2009 and later investments) | - | - | - | - | - | - | 9% |
| Capital Protection Plus Growth Bond | - | - | - | - | - | 0% | 10% |
| Capital Protection Plus Income Bond | - | - | - | - | - | 0% | 9% |
| Capital Protection Plus Growth Bond (Generation 2) | - | - | - | - | - | - | 1% |
| Capital Protection Plus Income Bond (Generation 2) | - | - | - | - | - | - | 1% |
| Other Income Bonds (dated April 2002 and later) and Investment Bonds (dated July 1997 or later and switched into With Profits in 2003 or later) | 11% | 10% | 15% | 9% | 3% | -15% | 10% |
| Other Unitised Life Policies | 12% | 10% | 16% | 11% | 4% | -17% | 12% |
| Conventional Life Policies | 12% | 10% | 16% | 11% | 5% | -15% | 12% |
| With Profits Annuities (Gross of tax) | 14% | 12% | 20% | 12% | 4% | -21% | 16% |
| Unitised Pensions (Gross of tax) | 14% | 12% | 19% | 10% | 4% | -18% | 14% |
| Conventional Buy Out Plans (Gross of tax) | 14% | 12% | 19% | 10% | 5% | -18% | 12% |
| PRP (Gross of tax) | 14% | 12% | 19% | 10% | 4% | -18% | 14% |
All returns are net of tax payable by Legal & General, unless specified.
2009 Market Performance Overview
The start of 2009 continued on from the credit crunch of 2008. Stock markets continued to fall, both in the UK and overseas,
and economic pressures saw the housing market and manufacturing sectors continuing to struggle. The low point for the stock
market came in March when the FTSE 100 was 23% lower than it had been at the start of year.
The different forms of financial stimulus adopted across the globe started to help stabilise markets at the start of the second
quarter, although any signs of a market recovery were slowed by the lack of freely available credit to stimulate economic
growth.
Interest rates hovered near the zero mark for the whole of 2009 in an attempt to encourage consumer spending to help kick
start the economy.
The last six months of the year saw a concerted rally in global stock markets with the FTSE 100 and US Dow Jones indices ending
the year up 22% and 18% respectively. Financial markets are still significantly lower than the peaks seen in 2007, and although
there has been a slight recovery in property prices, uncertainty and opportunity will be the watchwords for 2010.
The With Profits fund is invested in a mix of investments to help reduce the ups and downs of investing. The fund’s performance
is a combination of the returns received from all the investments in the fund. In 2009, the Legal & General With Profits Sub
Fund returned 14% before tax.
