Aviva announced today it has cut the regular bonuses on its main with-profit funds, including life and pension policies.
The bonus cuts come as a result of Aviva's popular CGNU and CULAC funds recording a decrease of 3.5 per cent. As a result CGNU bonuses have been reduced by 0.75 per cent on life policies and 0.5 per cent on pension policies.
Consequently, the new business rate for Aviva's bonds will be 2.75 per cent from July 1. Commenting, David Barral, marketing director at Aviva said:
"Aviva's With-Profit funds continue to provide investors with attractive returns while protecting them from the extremes of volatile equity markets.
"Despite market conditions, customers invested in Aviva's main With Profit Fund would have received a higher return than investing in an average savings account or average balanced managed fund, two of the most popular alternative investment options."
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