With-Profits Bonus Declaration February 2019  

In 2018, there were lots of ups and downs in financial markets.

These have had an impact on our With-Profits Fund as it invests globally in many different areas.

We’re pleased to be able to maintain annual bonus rates at the same level as last year, and provide you with some protection from the extremes of market volatility. We’ll add these to your plans over 2019, increasing the guaranteed benefits.

However, for most of you, we’re reducing final bonus rates slightly, compared to the rates we declared last year.

How we look after your money

We invest your money in the Prudential Assurance Company Limited With-Profits Fund. This is one of the largest and financially strongest with-profits funds in the UK. The size and strength of our Fund lets us invest in a wide range of assets and individual companies.

Our aim is to secure the highest total return for the Fund (after any tax and investment expenses), whilst maintaining an acceptable level of risk and protecting you, our With-Profits planholders.

Over the long term, our Fund performs well

The table below shows what the With-Profits Fund has returned over the last 1, 5 and 10 years to 31 December 2018.

But remember, we can’t predict the future so past performance isn’t a guide to future performance. The value of your plan can go down as well as up so you might get back less than you put in.


1 year Fund return %

5 year Cumulative
Fund return %

10 year Cumulative
Fund return %

5 year Annualised Fund return %

10 year Annualised Fund return %

Prudential With-Profits Fund (after tax)






Prudential With-Profits Fund (before tax)






Source: Prudential. These values are before charges and the effects of smoothing and are for the main asset pool in our With-Profits Sub-Fund, which is relevant to the vast majority of our customers.

For investments in our With-Profits Fund, the value of your plan depends on how much profit the Fund makes, and how we decide to distribute it.

When we take these factors into account, the bonuses we’re adding to your plan won't reflect the performance of the underlying fund exactly. See your yearly statement for more information.

When we set our bonus rates we look at a number of things

For annual bonus rates, these include the economic outlook and the returns we expect our investments to earn in the future.

Keeping annual bonus rates at the same level as last year means the With-Profits Fund keeps the investment flexibility it needs to better cope with market volatility, and continue to deliver competitive overall returns. This gives the Fund a better opportunity of paying higher final bonuses in future.

We calculate the final bonus value with the aim that the total return on planholders’ plans represents a fair share of the Fund’s profits earned over the lifetime of their plans. This is after taking into account, for example, charges, the effects of smoothing and any applicable tax.

Any final bonus we’ve declared in February 2019 may be payable if you leave the With-Profits Fund, in the next bonus year, but this isn’t guaranteed.

We sometimes apply a Market Value Reduction

Depending on the type of plan you have, if you take money out, we sometimes apply what is known as a Market Value Reduction, and this will reduce your fund value. We do this to make sure you get a fair plan value.

Thank you for investing with Prudential

In 2019, we'll continue to manage the Fund in a prudent manner, just as we always have.

John Foley 
Chief Executive, M&G Prudential


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