Scottish Mutual Assurance With Profits Funds and Endowment Policies

Scottish Mutual

Ownership status

Scottish mutual assurance plc is owned by Abbey National plc, authorised and registered by the financial services authority.

Range of Policies

Policies offered by Scottish mutual can be divided into four main sections. Firstly the traditional with-profits policies, which include whole life policies, traditional with profit endowment policies, which started in 1996 or earlier. Another traditional with-profits policy is a with-profits traditional pensions policy (i.e. one that does not invest in units) which started in 1996 or earlier.

Also offered are unitised with-profits policies, which can usually be identified by whether you have a Unitised With Profits bond or a Lifestyle bond from Royal and SunAlliance which started in January 1999 or later. Also If you have a unit linked "Living Pensions" or "Pensions Solutions" policy.

Phoenix also separate any with-profit bond policy started before 1997.

One final type of policy are those which invest in profit plus fund units only.

These are identifiable If you have a unit linked pensions policy, which can invest in Profit Plus Fund units..

Financial Strength

Moody’s – Baa/2

Standard and Poor’s - BBB/+

Asset Share

The investment mix at 1 Jan 07 for a typical Scottish mutual with profits policy was as follows

Assets	%
Equities	25-45
Real estate	0-15
Bonds	35-55
Alternative investments	0-5
Cash	5-20

Source: www.abbeyforintermediaries.com

With-profits returns and bonus history

The table below shows a general trend in annual bonus rates for Scottish mutual with-profits policy holders, over recent years

Year	Rates
1998 (sept)	6.75%
1999 (march)	6.25%
2000 (march)	6.00%
2001 (April)	5.25%
2001 (August)	4.75%
2002(march)	4.00%
2002 (oct)	3.5%
2003 (march)	0.00%
2004 (march)	0.00%

Source: www.scottishmutual.com

The table below shows the return on different Scottish mutual with-profits funds over three month, six month, one year, 3 year, and five year periods

	3m return	6m return	1yr return	3yr return	5yr return	10yr return	25yr return
WP life fund	0.0%	0.0%	0.0%	0.0%	1.8%	N/A	N/A
Sector average	0.5%	1.2%	3.0%	9.6%	16.3%	N/A	N/A

WP pension	1.1%	2.1%	4.1%	12.5%	21.7%	N/A	N/A
Sector Average	0.6%	1.4%	3.35	10.8%	18.2%	N/A	N/A

WP Endowment	N/A	N/A	N/A	N/A	N/A	-0.2%	6.8%

Source: www.trustnet.com
Money management magazine

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