L&G moves £3bn into bonds

Group moves out of equities and property but is still latest to report lower 2007 with-profit returns

Legal & General moved around £3bn of with-profits money out of equities and property into bonds to protect returns during a turbulent 2007. Despite this, the group is the latest to report performance around 50% lower than in 2006, with a 5% gross return over last year for conventional with-profits life policyholders. This compares to 11.2% for the previous 12 months. At the end of 2006, the group had over 50% of with-profits assets in equities, with 29% in fixed interest and 20% in property. While there are varying asset mixes on different types of policies, the average equity weigh...