Over the last five years to 30 June 2006, the with-profits fund delivered a total pre-tax return of 48.9 per cent compared with the return on the FTSE.
The All Share Total Return index over the same period is 27.8 per cent
The annual bonus will be applied from 01 March 2007.
This translates into an overall total return on premiums invested from 01 March 2006 onwards of 5 per cent per annum net of fund tax and charges. This includes the final bonus of 1.75 per cent per annum, which was announced as part of the 2006 full bonus declaration.4
The PruBond final bonus for 2007, as well as the bonus rates applying to Prudential’s full range of with-profits based policies, will be announced at the end of February 2007 following the completion of the full year-end valuation.
Prudential UK and Europe actuarial director David Belsham says: “The concept of with-profits with a strong office such as Prudential has proved its worth during volatile investment conditions.
“We continue to believe with-profits has a sound future with the potential to deliver solid and steady returns for all investors. PruBond’s 300,000 customers can now plan ahead for 2007 safe in the knowledge that the annual bonus is 3.25 per cent – which is also likely to be supplemented with a final bonus.”
