With-profits bonus slide

With-profit fund reversionary bonuses have been falling in line with the gilt yield curve, despite h...

With-profit fund reversionary bonuses have been falling in line with the gilt yield curve, despite having as much as 75% in equities funds. Paul Tinslay, an IFA with Wentworth Rose Independent, said the annual bonuses for with-profits used to be around 20% in the late 1980s and has steadily fallen to an average of 5.5% to 6% for most groups. This is similar to what has happened to gilt yields. Most funds over that time period have been building up their equity content relative to bonds. Research by Wentworth Rose provides a snap shot of the with-profits fund preference for heavier equity h...