Prudential maintains with-profits bonuses

17 December 2004
Prudential, the UK's largest insurer, has maintained the with-profits bonus against industry trends to 375,000 of its customers of Prudence Bond.

Savers will receive close to £400 million as a result, making the total return on the product equivalent to five per cent.

Hugh McKee, a director of Prudential, told the Telegraph that: "We are kicking off the with-profits bonus season early this year because we know that about a third of our customers take the income generated from PruBond.

"By announcing this rate now we can help them plan for the coming year."

One third of the Prudence Bond fund is invested in British shares, with overseas holdings bringing total equity content to 48 per cent, a remaining third is invested in corporate bonds and gilts, with 17 per cent in property and just two per cent held in cash.

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