The value of Legal & General's with-profits fund fell 18% during 2008, leading to a cut in bonus rates.
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, finance director of L&G's With Profits business says: "With-profits continues to provide attractive long term returns and has given customers genuine protection from market volatility.
"In current market conditions the core features of with-profits mean that it remains a good choice for investors. Our investment strategy puts us in a strong position to benefit from market recovery"
Contact: John Bakie, Tel: 020 7484 9805, e-mail: [email protected]IFAonline
Larger sample size to follow
Annual, tapered, money purchase …
As boss Tim Orton exits