Engage With Profits strong investment performance

Posted in: Corporate Last updated: 28 Apr 2008

After a year of volatile investment performance in the marketplace, engage Mutual is pleased to announce good returns for With Profits customers in its April bonus declaration.

Maturity values for ten-year plans, held by engage customers, are once again above the average payout of offices featured in the April 2008 Money Management With Profits survey as shown by the table below1.

 engage Mutual £7,237 
 Average maturity value £7,075
 Clerical Medical £6,609 
 Commercial Union £7,100 
 Friends Provident £6,272 
 Scottish Life £6,039 
 Standard Life £6,983 

Please note that past performance is not a reliable guide to future performance.

In 2008 engage will work with external fund managers, Insight Investment, in order to take a more active investment approach. This will have the dual aim of delivering even better returns at no additional cost to members.

Key points:

  • despite 2007 being a year of volatile stock-market performance, engage Mutual has been able to maintain the same regular bonus levels as last year
  • in the 12 months to 31st December 2007 the engage With Profits Fund recorded a return of 4.7% against an industry average of 3.9%.
  • the engage With Profit Fund continues to be in a strong position with free assets of over 13% of the total assets under management, as at 31st December 2007
  • some policyholders have seen 6.7% growth in the assets backing their investment plans in 2007
  • £14.9m in claims was paid out to members during 2007

1Source: Money Management, April 2008
2Actual with profits maturity values as at 1st February 2008 based on a policy taken out by a male aged 30 next birthday paying £50 per month over a ten year term.

Andrew Haigh, engage Mutual Chief Executive, added:

“The emerging strength of the With Profits fund gives engage more flexibility to take advantage of a wider range of investment opportunities, in order to increase future payout prospects. This year we are looking forward to working with our external fund managers Insight Investment to take a more active investment approach with the aim of delivering even better returns.

As well as the addition of valuable bonuses, our With Profits policyholders also benefit from guaranteed benefits. These guaranteed benefits, coupled with strong investment performance, mean that With Profits policies continue to compare very favourably with other types of long-term investment.

Customers can invest in our With Profits Fund via the Protected Investment Bond for lump-sum investors, and via our tax exempt savings plan, Easy Save and Junior Easy Save, for regular investors.”

notes to Editors:
Bonus Declarations in Detail:

New unitised With Profits business, post-2003

  • reversionary bonus to remain unchanged at 3.5% after charges.
  • terminal bonuses will continue to be paid for some lump sum investors

Unitised With Profits bondholders transferred from the UK Civil Service Benefit Society in 2003

  • reversionary bonus to remain unchanged at 1% after charges

Conventional With Profits endowment policyholders transferred from the UK Civil Service Benefit Society in 2003

  • reversionary bonus to remain unchanged at 1% of sum assured and previous bonuses
  • for policies commencing after 1980, zero terminal bonus will continue to be declared, as guaranteed benefits of policies are still well in excess of asset shares
  • for policies commencing before 1981, terminal bonuses continue to be paid.

about engage Mutual:

engage Mutual is one of the larger UK mutual friendly societies providing simple, value for money savings, protection and investment products. engage currently helps over 370,000 customers of all ages to protect, preserve or enhance their welfare, with some of the most straightforward products on the market.

engage prides itself as a family-oriented, modern mutual, providing products that enable households of all kinds to help meet their future needs. More information onengage Mutual is available at www.engagemutual.com.

engage Mutual transferred business from the UK Civil Service Benefit Society in 2003, and has since managed the With Profits policies of former UKCSB members.

Consumers can contact engage Mutual on 0800 169 4321 or by visitingwww.engagemutual.com

The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.