With-Profits Bonus Declaration
Over 2021, The Prudential Assurance Company Limited With-Profits Fund returned 10.1% (net of tax) and 12.0% (gross of tax), both before charges and the effects of smoothing*. Please see information specific to your Plan to find out more.
*This describes the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers.
Please remember that past performance is not a reliable indicator of future performance.
On the Bonus Declaration literature page, you'll find literature and sales aids that you can use to discuss bonus declaration with your clients.
Summary of 2022 annual bonus rates
|Annual bonus rate|
|Most** Unitised (or accumulating With-Profits) With-Profits bonds||1.25%|
|Flexible Retirement Plan (including income drawdown) and Trustee Investment Plan (for all new business post 7/11/11)||1.05%|
|Corporate pensions (unitised)||1.50%|
|With-Profits Pension Annuity||0.25%|
|Most^ Unitised (or accumulating With-Profits) Personal Pensions||1.25%|
**Most refers to Prudence Bond (Optimum Return) both no initial charge and initial charge versions, International Prudence Bond & Prudential International Investment Bond (Euro), International Prudence Bond & Prudential International Investment Bond (US) and PSA/PIB (Fund over £2). With effect from 01/03/2020, the high tier bonus threshold is reduced from £6,000 to £2 implying all PSA/PIB business receive high tier bonuses from that date going forward.
In 2021, our globally diversified With-Profits Fund performed well in mostly positive financial markets despite the backdrop of Covid-19 uncertainty. We aim to provide fair pay-outs based on what the Fund has achieved, so this year:
- We're pleased to maintain annual bonus rates at the same as last year for all planholders, which will continue to add to the guaranteed benefits of their plans.
- Most of our planholders will benefit from increases in final bonus rates and therefore the value of their plans. Final bonus may vary and isn't guaranteed***
- This year we've also got additional money in the With-Profits Sub Fund to share with some of our With-Profit planholders. Because of this, we've increased the unsmoothed value of their plans by 1.75%. This is reflected in our final bonuses from this year. There's a chance we might have to take back this extra money. You can find out more details on our website at: pru.co.uk/aboutadditionalsurplus
As our highly successful PruFund fund range is also written in the With-Profits Sub Fund, we have shared additional surplus with these customers by increasing the unit price by 1.25% on 28 February 2022 for PruFund and PruFund Planet funds. An uplift in unit price does not apply for the offshore versions.
We aim to provide fair pay-outs based on what the Fund has achieved over the longer term after taking into account the effects of charges, smoothing and any applicable tax.
***Our Final Bonus rates include, where applicable, additional money we are sharing with some of our With-Profits customers at this bonus declaration, which is further to the additional money we shared in 2020. Your Final Bonus isn’t guaranteed. There’s also a chance we might have to take back this extra money in future, to protect the interests of all plan holders and the financial strength of our With-Profits Fund. Unless something very unusual was to happen, we wouldn’t expect to have to do this.
The Prudential Assurance Company Limited With-Profits Fund is one of the largest and financially strongest With-Profits Funds in the UK. The size and strength of our Fund allows us to invest in a very wide range of assets and individual companies.
The total level of assets backing the With-Profits business in the Fund was £126.5bn at 31 December 2021. Note: this figure includes the assets backing the former Scottish Amicable Insurance Fund business.
M&G Treasury and Investment Office (T&IO)
PAC With-Profits Fund - comparative cumulative and annualised returns over 1, 5 and 10 years
|1 Year return %||5 Years cumulative return %||10 Years cumulative return %||5 Years annualised return %||10 Years annualised return %|
|Prudential With-Profits Fund (net)*||10.1%||30.7%||91.7%||5.5%||6.7%|
|Prudential With-Profits Fund (gross)**||12.0%||36.2%||113.3%||6.4%||7.9%|
|ABI UK - Mixed Investment 20% - 60% Shares Sector Average - Life Funds***||5.9%||17.6%||57.3%||3.3%||4.6%|
|ABI UK - Mixed Investment 20% - 60% Shares Sector Average - Pension Funds***||7.1%||21.9%||71.3%||4.0%||5.5%|
|FTSE 100 Total Return (Gross)||18.4%||25.6%||94.0%||4.7%||6.8%|
|Morningstar 90 Days Notice (UK Savings £25,000+) Net||0.2%||1.7%||3.8%||0.3%||0.4%|
|Morningstar 90 Days Notice (UK Savings £25,000+) Gross||0.3%||2.1%||4.8%||0.4%||0.5%|
|UK Retail Price Index||7.5%||18.9%||32.7%||3.5%||2.9%|
Source: Prudential, FE. All figures to 31 December 2021
* With-Profits performance is net of tax and before charges and the effects of smoothing. The returns shown are for the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers.
** With-Profits performance is gross of tax and before charges and the effects of smoothing. The returns shown are for the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers.
*** ABI UK – Mixed Investment 20-60% Shares – The Association of British Insurers (ABI) has a classification system whereby the performance of funds that have similar asset allocations are grouped together to give an average performance figure. This is known as the sector average. It's important to note that some if not all of the Funds comprising this sector average will already have fund management charges deducted from their performance.
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