Smoothing has helped cushion Standard Life's with-profits policies against falling markets, the group says today in its mid-year review of bonus rates.
Standard Life reports year on year increases in plan values across most types of with-profits savings and investment plans. Annual bonus rates have been maintained for all plans.
Margaret Flaherty, with-profits communications manager, Standard Life, says: “The challenging financial market conditions that took hold in the second half of 2007 have continued into 2008. These have resulted in significant falls in value for most types of assets.
"However, we are pleased to say that, despite the volatile economic conditions, values for all types of plan have grown over the past 12 months, with smoothing cushioning the impact of downward market movements.”
Following the review for the 12 August 2008 bonus declaration, Standard Life is also continuing to make distributions from the inherited estate and as a result payouts on many with-profits plans will include an enhancement.
Plans eligible for the inherited estate enhancements are those which began investing (at least partly) in with-profits before demutualization (10 July 2006) and have remained in with-profits since then. Shareholders do not benefit from the distribution.
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