Scot Wids cuts bonus rates

Scottish Widows has cut the regular bonus rates on a number of its with-profits funds by 0.5%-1% and reduced market value reductions (MVRs) for all products to which they currently apply. The regular bonus rate for new business into the Flexible Options Bond Income fund has been reduced to 3.75% from 4.75%. The rates on other unitised with-profits life and pension policies have generally been cut by 0.5%. Final bonus rates on with-profits policies have also been reduced. Scottish Widows chief executive, Mike Ross, said the cuts are due to a reduction in investment returns, despite some ...