Source: Prudential. These returns are before charges and the effects of smoothing and are for the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers. Please see information specific to your plan to find out more.
The value of your plan depends on how much profit the Fund makes and how we decide to distribute it. The total bonuses we’re adding to your plan won't reflect the performance of the underlying fund exactly because of, for example, charges, the effects of smoothing and any applicable tax. You can find more information in your yearly statement.
We can’t predict the future so past performance isn’t a guide to future performance. The value of your investment can go down as well as up so you might not get back the amount you put in.
How we set our bonus rates
For Annual Bonus rates, we consider the return we expect our investments to earn in the future. We hold back some of this return, with the aim of paying a proportion of the proceeds as Final Bonus. By doing this, we try to keep the cost of all guaranteed benefits at a sustainable level to maintain investment flexibility and to protect our customers.
For Final Bonus rates, we calculate it with the aim that the total return on customers’ plans represents a fair share of the profits of the With-Profits Fund over the lifetime of their investments.
Our Final Bonus rates include, where applicable, additional money we shared with some of our With-Profits customers as part of previous years’ Bonus Declarations. Final Bonus isn’t guaranteed. There’s also a chance we might have to take back the additional money distributed (in previous years) in the future, to protect the interests of all customers. Unless something very unusual happened, we wouldn’t expect to have to do this.
And something to be aware of
Sometimes, we may need to apply a Market Value Reduction if you decide to take money out of your plan. This will depend on the type of plan you have. This will reduce your fund value, but we’ll do this to make sure you get a fair plan value.
In 2025, we’ll continue to evolve portfolios and capture new investment opportunities from around the world.
Thank you for investing with us.