With profits bonds performance

On this page you'll find the investment returns and asset mixes for all our with profits bonds, and information on how these relate to the bonuses we pay.

With profits bonds performance history

View the investment returns for the assets that specific with profits bonds invest in:

Capital Control Bonds

Capital Control Bonds annual investment returns

Capital Control Bonds
Product 2013 2014 2015 2016 2017
Capital Control Growth Bond (investments between 1 March 2010 and 31 March 2012) 8% 8% 3% 13%  7%
Capital Control Income Bond (investments between 1 March 2010 and 31 March 2012) 7% 9% 3% 12%  7%

Performance is for calendar years, 1 January to 31 December. The investment returns shown for all products 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 %.

Past performance is not a guide to future performance.

Capital Protection and Capital Protection Plus Bonds

Capital Protection and Capital Protection Plus Bonds annual investment returns

Capital control bonds
Product 2013 2014 2015 2016 2017
Capital Protection Growth Bond (investments between May and December 2008) 9%  8%  3%  13%  8%
Capital Protection Income Bond (investments between May and December 2008) 7% 9% 3% 12% 7%
Capital Protection Growth Bond (investments between January 2009 and June 2010) 8% 8% 3% 13% 7%
Capital Protection Income Bond (investments between January 2009 and June 2010) 7% 9% 3% 12%  7%
Capital Protection Plus Growth Bond (investments between November 2008 and December 2009) 8% 8% 3% 13% 7%
Capital Protection Plus Income Bond (investments between November 2008 and December 2009) 7% 9% 2% 13% 7%
Capital Protection Plus Growth Bond - Generation 2 (investments between December 2009 and June 2010) 6% 9% 2% 12% 6%
Capital Protection Plus Income Bond - Generation 2 (investments between December 2009 and June 2010) 5% 10% 2% 12% 6%

Performance is for calendar years, 1 January to 31 December. The investment returns shown for all products 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 %.

Past performance is not a guide to future performance.

Other With Profits Bonds

Other with profits bonds annual investment returns

Othe with profits bonds
Product 2013 2014 2015 2016 2017
With Profits Growth Bonds excluding those with a 10th anniversary guarantee (August 1999 and December 2014) 9% 8% 3% 13%  8%
With Profits Income Bonds (March 2002 and earlier investments) 9% 8% 3% 12%  7%
Growth and Income Bonds with a 10th anniversary guarantee (investments between October 2003 and September 2005)* 8% 8% 3% 13%  7%
Other Income Bonds (April 2002 and December 2014) and Investment Bonds (July 1997 or later investments, and switched into with profits in 2003 or later) 7% 9% 3% 12% 7%

*The investment return depends on the product type held and the date the investment was made. The figures shown are averages for all product types and dates.

Performance is for calendar years, 1 January to 31 December. The investment returns shown for all products 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 %.

Past performance is not a guide to future performance.

With profits bonds investment mix

The money invested in a with profits bond 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.

View the asset mixes for our with profits bonds as at 31 December 2017.

Capital Control Bonds

Asset mix as at 31 December 2017

Capital Control Bonds asset mix
Product UK shares Overseas shares Fixed interest securities Commercial property
Capital Control Growth Bond (investments between 1 March 2010 and 31 March 2012) 17% 25% 47% 11% 
Capital Control Income Bond (investments between 1 March 2010 and 31 March 2012) 16% 23% 51% 10%

Capital Protection and Capital Protection Plus Bonds

Asset mix as at 31 December 2017

Capital Protection Asset mix
Product UK shares Overseas shares Fixed interest securities Commercial property
Capital Protection Growth Bond (investments between May and December 2008) 19% 27% 42% 12%
Capital Protection Income Bond (investments between May and December 2008) 16% 23% 51% 10%
Capital Protection Growth Bond (investments between January 2009 and June 2010) 17% 25% 47% 11%
Capital Protection Income Bond (investments between January 2009 and June 2010) 16% 23% 51% 10%
Capital Protection Plus Growth Bond (investments between November 2008 and December 2009) 17% 25% 47% 11%
Capital Protection Plus Income Bond (investments between November 2008 and December 2009) 16% 23% 51% 10%
Capital Protection Plus Growth Bond - Generation 2 (investments between December 2009 and June 2010) 12% 18% 62% 8%
Capital Protection Plus Income Bond - Generation 2 (investments between December 2009 and June 2010) 11% 15% 67% 7%

Other With Profits Bonds

Asset mix as at 31 December 2017

Other with profits bonds
Product UK shares Overseas shares Fixed interest securities Commercial property
With Profits Growth Bonds excluding those with a 10th anniversary guarantee (August 1999 and December 2014) 19% 27% 42% 12%
With Profits Income Bonds (March 2002 and earlier investments) 15% 22% 53% 10%
Growth and Income Bonds with a 10th anniversary guarantee (investments between October 2003 and September 2005)* 18% 25% 46% 11%
Other Income Bonds (April 2002 and December 2014) and Investment Bonds (July 1997 or later investments, and switched into with profits in 2003 or later) 16% 23% 51% 10%

*The asset mixes for individual products depend on the product type and the date the investment was made.

Factors affecting the bonus rates

The returns, or bonuses, added to a plan over the years will not be the same as the returns shown in the tables at the top of this page.

Investment returns, less any tax applicable, are the most important factor in deciding how much bonus we pay. These depend on the mix of assets your policy is invested in and how these assets have performed.

We also consider the following:

  • Historic investment returns experienced over the period of your investment.
  • Bonuses already declared.
  • Our view of future investment conditions.
  • When you started your policy.
  • The effects of smoothing. 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. You can find more information on smoothing in our  PDF file: Understanding Smoothing (Q38839) PDF size: 42KB  factsheet.
  • The type of with profits policy you have and the terms of your policy, including the type and extent of any guarantees.
  • Money built up in the With Profits Fund that is over and above what we expect to need for future obligations such as tax, expenses and future bonuses to policyholders.

    Expenses charged to the With Profits Fund include regular payments into the Legal & General defined benefit pension schemes. In 2017, the Board decided to make a one off payment from the With Profits Fund which means that these ongoing payments into the pension schemes from the With Profits Fund will stop. We don’t expect this change to cause a reduction in bonus rates.

  • The costs of running your policy.
  • Any other adjustments, for example to cover an increase in the cost of guarantees and options. For the bonus declaration for 2017, there will be no adjustments.

Some income bond customers (those not eligible for a final bonus) will receive an annual bonus rate for 2017 which is higher than the interim bonus rate for 2017. This increased rate is likely to be a one off and it is expected to reduce to around the level of the interim bonus rate in future years.

Important information

The value of investments may fall as well as rise and investors may get back less than they invested.

Bonus Rate Finder

Use this tool to find current and previous with profits bonus rates. The tool is easy to use with instructions throughout but if you do have any difficulty accessing it, go to the Bonus Rate Finder page for help.