Exit With-Profits | Free IFA Plan Review Service

Do you have a guarantee on your with-profits plan?

Helping You Understand Your With-Profits Plan

With-Profits Plan Your Questions Answered

Compensation For Mis-Sold With-Profit Plans

Scottish Provident

Ownership status

Scottish provident is owned by abbey national (part of the Santander group), who on June 6, 2006, announced they had sold all their life business to Phoenix life, part of the Resolution Group.

Range of Policies

Scottish provident offer various types of with-profit plans, these can either be described as unitised or conventional.

The conventional with-profits business comprises the classes of with-profits policy where there is no choice of investment and there is usually a guaranteed benefit available at a fixed date, with bonuses declared once per year.

The unitised with-profits business includes all the with-profits business under which benefits are expressed in terms of the value of with-profits units, usually arising as a result of the exercise of choice within the policy between investing in with-profits or in property-linked or index-linked funds.The deposit administration business consists of the Active Simplified Pension Investment Funding Plans, which are group pension policies effected by the trustees of occupational pension schemes.

Financial Strength

Moody’s - Aa3

Standard and Poor’s - BBB/stable

MVRs

In recent years Scottish provident MVRs have decreased and in some cases have been removed. There are no MVRs on Scottish provident life and bond contracts. For pension business the MVRs now range from between 0% and 15% depending the policiy and how long its untis have been held

Typical Asset share

Typical asset share in a with-profits policy taken out with Scottish provident (at Dec 06) was;

Assets	%
Fixed interest	39
Equity	47
Property	0
other	14

With profits return and bonus rates

Through out the last four years, Scottish provident have maintained an annual bonus rate of 0% on its with profits policies, with the exception of the few remaining which have minimum guaranteed bonus’.

Scottish provident claim this is to “preserve the long term interests of all policy holders” as paying annual bonus’ could disproportionately benefit both retiring policyholders and policy holders with guarantees as opposed to those who remain invested in the funds without any guarantees”.

	3m return	6m return	1yr return	3yr return	5yr return	10yr return	25yr return
SP inst 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 acc	1.7%	2.1%	4.1%	12.5%	21.7%	N/A	N/A
WP pension ord	1.7%	2.1%	4.1%	12.5%	21.7%	N/A	N/A
UWP pension Edinburgh	0.0%	0.0%	0.0%	0.0%	2.1%	N/A	N/A
UWP pension Kendal	0.0%	0.0%	0.0%	0.0%	2.1%	N/A	N/A
Sector average	0.6%	1.4%	3.3%	10.8%	18.2%	N/A	N/A

WP endowment	N/A	N/A	N/A	N/A	N/A	-0.9%	7.15

Source: www.trustnet.com
Money management magazine

The information on this website is to be viewed as general information and does not constitute advice. Views and opinions expressed are those of the individual contributors. Individuals reading the site should not rely on any of the information contained within the site in making any decisions. DMP Financial cannot be held responsible for any liability suffered by any individual as a result of information contained within the site. In the event that advice or help is required then independent advice should be sought from a regulated independent adviser.