Prudence Bond holders will have a regular bonus of 3.25% added to their policies in 2003, a drop fro...
Prudence Bond holders will have a regular bonus of 3.25% added to their policies in 2003, a drop from 4% in 2002. The group's personal pension customers will get a regular bonus of 3.5%, a 1% drop from the regular bonuses allocated in 2002 of 4.5%.
The Prudential has also reduced final bonuses payable on future claims. The group has said values will not be lowered by more than 12% for pension products while final bonuses on all other products will be reduced by not more than 10%.
For the typical Prudence Bond customer, £10,000 invested in April 1998 would be worth £12,280 on 6 April 2003, 0.1% less than the value of the same policy on 6 April 2002. A £10,000 investment made on 6 April 1993 would be worth £19,059% on 6 April 2003, a 10.1% drop in the value of the same policy on 6 April 2002.
For investors in the Prudence Bond Optimum Bonus contract, a 4% annual bonus is to be added, a 1% drop from last year's bonus of 5%. The Optimum Bonus Fund has a greater emphasis on fixed interest securities and cash, with the aim of producing a higher annual bonus for those seeking greater income from their investment.
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress