L&G cuts bonuses as with-profits fund dips 18%

Following a number of other with-profits funds, the value of assets has fallen due to the financial crisis and economic downturn. Total bonus payments for 2008 will be £689m, up 3.6% from £665m in 2007, but the regular and final bonuses received by individual investors have been cut. With-profits bonds will see the worst annual return, with investments dating from 2004 down 18.3% over the past year, while older bonds have fallen in value by around 17%. Legal & General says the fund is still a good long-term investment, with returns of 27% over the last five years. Carl Dowthwaite, f...