With profits endowment and savings plans performance
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 over the last five years for the assets that specific with profits endowments and savings plans invest in.
Annual investment returns
|Unitised life policies including: ||3%||13%||8%||-3%||11%|
Conventional life policies including:
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 %.
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 2019.
Asset mix as at 31 December 2019
|Product||UK shares||Overseas shares||Fixed interest securities||Commercial property||Other|
Unitised life policies including:
Conventional life policies including:
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 in the performance history section above.
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 the policy is invested in and how these assets have performed.
We also consider the following:
- Historic investment returns experienced over the period of the investment.
- Bonuses already declared.
- Our view of future investment conditions.
- When an investor started their policy.
- The effects of smoothing. Smoothing aims to even out some of the short-term ups and downs that may be experienced when investing in the stock market or other investments. You can find more information on smoothing in our PDF file: Understanding Smoothing (Q38839) PDF size: 85KB factsheet.
- The type of with profits policy an investor has and the terms of their 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.
Following the closure of the With Profits Fund to new business on 31 January 2015, we have considered annually whether to distribute part of this money. For the bonus declaration for 2019, we’ve added 0.5% to the value of the underlying assets. This value is not added directly to an investor's bonus rate but is allowed for when we work out what bonus they are entitled to.
- The costs of running an investor's policy. With effect from 1 January 2018, most of the costs of running an investor's policy were fixed under an expense agreement. This agreement continues until 30 June 2020 but we may extend it beyond that date.
- Any other adjustments, for example to cover an increase in the cost of guarantees and options. For the bonus declaration for 2019, there will be no adjustments.
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.