Mar 29 2012

No bonuses on cards for Phoenix’s with profits funds

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ByIona Bain

In a statement from the company, it also revealed bonus rates on the majority of conventional with-profits life and pensions policies managed by the firm were zero this year.

It is the first time Phoenix has published annual bonus rates for its stable of 13 closed with-profits funds, which include National Provident, Britannic and Scottish Mutual.

The so-called ‘zombie’ fund manager explained that most policyholders will see “nil or low” bonuses in the years to come because the firm is prioritising final bonus rates.

However, an annual bonus of 1.5 per cent was added to former Royal Life traditional pension policies, compared to 0.2 per cent last year. Annual bonus rates also jumped from 1 per cent to 3 per cent for former Scottish Mutual Assurance unitised with-profits pension policies.