Endowments and savings plans bonus declaration.

On this page you'll find the investment returns and asset mixes for specific with profits endowments and savings plans, and information on how these relate to the bonuses we pay.

With profits endowments and savings plans performance history

The table below shows the investment returns for the assets that specific with profits endowments and savings plans invest in, over the last five years.

Annual investment returns
Product20092010201120122013

Unitised life policies including:

  • Capital Accumulation
  • Capital Investment Portfolio
  • Capital Preservation
  • Flexible Investment Plan
  • Flexible Mortgage Plan
  • Flexible Protection Plan
  • Unit Savings (Prospects and New Savings Plan)
12%11%1%9%9%

Conventional life policies including:

  • Build Up
  • Cash Builder
  • Endowment
  • Low Start Build Up
  • Progressive Build Up Plus 
  • Progressive Flexible Build Up
  • Progressive Investment
  • Treasure Chest
  • Whole of Life Plan
12%10%0%8%9%

Performance is for calendar years, 1 January to 31 December. The investment returns shown are after tax but before we have taken off investment expenses and any plan charges. Please note that all investment returns are rounded to the nearest percent.

Past performance is not a guide to future performance.

With profits endowments and savings plans investment mix

The money invested in a with profits endowment or savings plan is combined with money from other with profits investors in the With Profits Fund. The With Profits Fund invests in a mix of assets, such as UK and overseas shares, fixed interest securities and commercial property.

While everyone is invested together in the With Profits Fund, the investment approach may vary depending on the type of plan held. This may be for a number of reasons, one of which is to reflect the features and benefits of different with profits products.

The table below shows the asset mix for our with profits endowments and savings plans as at 31 December 2013.

ASSET MIX AS AT 31 DECEMBER 2013

PRODUCT

UK SHARES

OVERSEAS SHARES

FIXED INTEREST SECURITIES

COMMERCIAL PROPERTY

OTHER

Unitised life policies including:

  • Capital Accumulation
  • Capital Investment Portfolio
  • Capital Preservation
  • Flexible Investment Plan
  • Flexible Mortgage Plan
  • Flexible Protection Plan
  • Unit Savings (Prospects and New Savings Plan)

Conventional life policies including:

  • Build Up
  • Cash Builder
  • Endowment
  • Low Start Build Up
  • Progressive Build Up Plus
  • Progressive Flexible Build Up
  • Progressive Investment
  • Treasure Chest
  • Whole of Life Plan
23%29%35%12%1%
The asset mixes for individual products depend on the product type and the date the investment was made.
Factors affecting the bonus amount

We may add an annual bonus to a with profits plan at the end of each year. The amount of bonus we add will depend on the mix of assets the plan is invested in and the investment performance of these assets.

Investment returns are the most important factor in deciding how much bonus we pay. When we set bonus rates we consider the following:

  • The mix of assets your plan is invested in and how well these assets have performed.
  • When you started your plan.
  • Past bonus rates and our view of future market conditions.
  • The effects of smoothing.
  • The type of plan you have and the plan terms.
  • The expenses of running your plan.

With profits plans are designed to smooth returns. Smoothing means that in years of good investment growth we may hold back some of the investment returns, so that we can top up bonuses in years where the performance is not as good. This means that the returns, or bonuses, added to a plan over the years will not be the same as the returns shown in the table at the top of this page. You can find more information on smoothing in our Understanding Smoothing (Q38839) (PDF: 53KB) factsheet.

Important information

It is worth remembering that the value of your investment can fall as well as rise and you could get back less than you invested.


Your recently viewed items...

You need javascript enabled for us to remember your Recently Viewed Items.

You might also be interested in...

With profits guides

Here you'll find easy to understand factsheets on 'smoothing', market value reductions and bonus declarations.

Latest With Profits bonus declaration

Find out more about the latest bonus rates for With Profits policies.

Register or log in to My Accounts

Use our free and secure online service, My Accounts, to find out the current value of your Legal & General investment or pension, seven days a week.