Final payments on Scottish Life fund reduced over year

Royal London has maintained annual bonus rates on the closed Scottish Life with-profits fund, althou...

Royal London has maintained annual bonus rates on the closed Scottish Life with-profits fund, although most final payments have reduced compared to January 2006. Group finance director Stephen Shone said the reduction in terminal payouts relative to the previous year is primarily a result of an increase in liabilities relating to guarantees that apply to certain policies in the fund. The Scottish Life fund remains largely invested in corporate bonds, with 68% at the end of 2006 compared to 66% a year earlier. Other weightings include 23% in equities, down from 26%, 8% in property and 1% i...