View more on these topics

Prudential adds £2bn to with-profits bonuses

Prudential 480

Prudential added £2bn in bonuses across its with-profits policies during 2012 as its funds delivered returns of up to 6.3 per cent.

The provider says around £800m of this has been paid through increased annual bonuses, which provide investors with guaranteed growth. The remaining £1.2bn was added to final bonus payouts.

The returns on with-profits investments vary depending on the product chosen and the length of time invested.

Someone who invested a single premium of £10,000 in a 10-year Prudential with-profits ‘prudence’ bond would have received returns of 5.9 per cent a year over that period.

If a saver paid a £10,000 single premium into the 15-year version of the bond they would have experienced returns of 4.6 per cent a year, while the 20-year bond delivered returns of 6.3 per cent.

An individual who invested £200 a month over a 20-year term in the Prudential with-profits individual pension product would have received returns of 5.5 per cent a year.

Someone who paid £50 a month into the provider’s 25-year with-profits endowment would have experienced annual returns of 5.9 per cent. If the same person had invested £50 a month in the 25-year Scottish Amicable endowment they would have received 6.1 per cent a year.

AWD Chase de Vere head of communications Patrick Connolly says: “This bonus declaration is a clear endorsement that Prudential remains, by some distance, the leading provider of with-profits investments.

“AWD Chase de Vere has many cautious clients who are invested in Prudential’s with-profits fund and a large proportion of these are perfectly happy with the performance and lack of volatility of their policies.”


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. RegulatorSaurusRex 28th February 2013 at 10:00 am

    All those churned Pru bond investments and Pru/ScrotAm pensions will be languishing in SIPPS and platforms today.

  2. The man from the Pru is coming back to haunt us and this announcement will assist in the recruitment of advisers and customers in many countries.

    Good ol’ with profits slush fund.

  3. The article fails to mention that nearly all the annual bonuses have been cut again so slowly becoming a cautious managed fund except Pru decide how much investors receive not the fund itself.

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm