View more on these topics

Phoenix to hold annual with-profits bonuses at “low to nil”

Phoenix has warned investors to expect annual bonus rates on with-profits funds to remain “low or nil” in the next few years as the closed life firm gives priority to final bonus rates.

Annual bonus rates on the majority of conventional with-profits life and pensions policies managed by the firm were nil this year.

However, Phoenix increased annual bonus rates on former Royal Life traditional pension policies from 0.2 per cent in 2011 to 1.5 per cent this year. Annual bonus rates for former Scottish Mutual Assurance unitised with-profits pension policies also rose from 1 per cent to 3 per cent.

Despite targeting higher final bonus payments, Phoenix concedes a “significant” number of policies will receive no final bonus because the benefits already guaranteed are higher than the value of underlying investments.

Final bonuses have been added to a number of the funds managed by the provider, including former Britannic Assurance OB policies.

Phoenix chief executive Mike Merrick says: “We have continued our practice of enhancing final bonus rates out of surplus money in those funds which have excess assets.

“In other cases, our emphasis remains on ensuring that the funds are safely managed so that we can deliver on our commitments to meet the guarantees already given and to ensure customers are treated fairly.”

Phoenix manages over 3.25 million whole of life and endowment and 2.25 million pensions.


Insight multi-asset head Pingerra quits

Mike Pingerra, the head of multi-asset at Insight Investments, is to leave the firm. At Insight, Pingerra co-managed the £59.1m Insight diversified dynamic return fund, £21.3m Insight diversified high income fund, £132.3m Insight diversified target return fund, £34.8m Insight UK dynamic managed fund and £91.8m Insight UK wealth builder fund. Pingerra’s co-manager Steve Waddington will […]

Fidelity’s Lodha: Oil values are unsustainable

Fidelity’s Amit Lodha is positioning the global real asset securities fund in anticipation of a falloff in oil prices. Speaking at the Fund Strategy Investment Summit in Kitzbuhel, the manager of the £130.3m fund describes the current oil valuations as ’unsustainable’ at a time when Brent crude is trading at its highest levels since April […]

Morgan Stanley job cuts loom on derivatives

Morgan Stanley European head of structured product marketing Sophie Barnett has been put on consultation along with other members of the equity derivatives team, Money Marketing understands. The consultation is understood to be part of a wider programme of redundancies at the bank. In December, Morgan Stanley announced it is planning to cut around 1,600 […]

Defined-aspiration plan shares risks, says Webb

Pensions minister Steve Webb will outline details of how the Government can encourage “defined-aspiration” provision in a consultation paper on reinvigorating occupational pensions later this year. In a speech to the National Association of Pension Funds last week, LibDem MP Webb said policymakers want to encourage the creation of hybrid pension schemes which allow greater […]

US equity income: the standout market

By James Hackman, head of US Equities at Neptune With a growing dividend market, very low payout ratios and high dividend cover, the US is one of the standout equity income markets globally. It is also one of the most unloved. James Hackman, manager of the top-performing Neptune US Income Fund, highlights six key facts […]


News and expert analysis straight to your inbox

Sign up


There are 3 comments at the moment, we would love to hear your opinion too.

  1. Just goes to show all that guff when Phoenix bought out all those failing providers about strength in numbers and lower management costs leading to better profits was just that , a load of guff.

  2. My endowment with Phoenix originally with LAS is due to mature Feb 2013 will they pay a final bonus . Thanks

  3. phil darlington 15th March 2013 at 12:59 pm

    Can’t seem to get an answer to ‘What is the Terminal bonus per £1000 on a 15 yr traditional Britannic OB endowment if it were to mature today !!!!!!!!!
    Is it a state secret? Phoenix would not give the information to my colleague!

Leave a comment