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Bonus Declaration for 2016

09.05.2017 by CarolineBarrett

On 2nd May 2017, we announced our with profits bonus rates.

Key Information

  • Investment Performance: During 2016 our With Profits Fund saw strong returns, growing by 7.8% for the year, despite challenging market conditions.
  • Asset mix: The With Profits Fund was split across Gilts (28.26%), Corporate Bonds (21.53%), Equities (19.65%), Property (26.73%) and Cash (3.83%) as at 31st December 2016.
  • Bonus Rates have been increased or maintained where appropriate to do so.
  • Terminal bonus rates have been added or increased on some policies to maintain fair asset share.
  • No Market Value Reductions (MVRs) are currently being applied on any policies.


We announced the following bonus rates, which are net of all charges:

2016 Reversionary Bonus Rates

Product 2016 Reversionary  (Net) Bonus Rate
Investment Bond (opened before 13/09/2016)1.40%
Investment Bond (opened after 14/09/2016)2.50%
Individual Savings Account (ISA) (opened after 01/07/2014)3.10%
Junior Individual Savings Account (JISA) (opened after 01/07/2014)3.10%
Tax Exempt Savings Plan (TESP)1.50%
Junior Tax Exempt Savings Plan (JTESP)1.50%
Regular Savings Plan (RSP)1.00%


2017 Current Bonus Rates

Product 2017 (Net) Bonus Rate
Individual Savings Account (ISA) (opened before 01/07/2014)1.50%
Junior Individual Savings Account (JISA) (opened before 01/07/2014)1.50%
Child Trust Fund (CTF) – Non-stakeholder Version1.50%


Risk Warning

Past performance is not a guarantee of future performance. Bonus rates are not guaranteed, but once added cannot be removed.



How does With-Profits Work?

The aim of the With Profits Fund is to reduce investment risk by spreading investments over different asset classes. It is considered a low to medium risk investment and we aim to provide smoothed investment returns over the long term by varying the weightings in each of these asset classes.

Every year we may declare a bonus rate, for each type of plan. Any bonus declared is added to plans eligible for bonus during this period and once added can’t be removed. The amount of any bonus is decided annually by the Society Board following advice from our Chief Actuary.

The amount depends on the returns achieved by the Society on its investments, the Society’s expenses and other factors such as the number of policyholders dying or cashing in their policies. We use smoothing, in order to try and even out the annual bonus, which means retaining some of the surplus in good years to supplement those in poorer years.

In the event of withdrawal, transfer or death we aim to give members a fair share in the With-Profits Fund. This may result in a Terminal Bonus or Market Value Reduction being applied to ensure that a fair asset share is paid.

What is a Reversionary Bonus Rate?

A Reversionary Bonus Rate is added to your plan annually. Reversionary Bonuses are usually added after the end of the year and reflect the performance of the fund during that period. We don’t guarantee a bonus will be added each year, but once added it can’t be removed.

What is a Current Bonus Rate?

A Current Bonus Rate is added to your plan incrementally throughout the year on a daily basis. We don’t guarantee a bonus will be added each year, but once added it can’t be removed.

What is Terminal Bonus?

You may receive a Terminal Bonus upon withdrawal of your funds from the Society.

A Terminal Bonus may be applied to your withdrawal to ensure you receive your fair asset share. For example Terminal Bonuses may be paid on withdrawals where financial markets are experiencing a significant upturn or where money was held back as part of our smoothing process.

A Terminal Bonus is not guaranteed and can be withdrawn or changed at any time.

What is a Market Value Reduction (MVR)?

A Market Value Reduction (MVR) may be applied upon withdrawal of your funds from the Society.

An MVR might be applied on a withdrawal where the value of your policy is above your fair asset share. This would usually occur if you were to withdraw money from your policy when the financial markets were experiencing a downturn. An MVR will not be applied upon death.

An MVR may change at any time without notice.

Have you ever applied a Market Value Reduction (MVR)?

The Society applied an MVR of 2% on Child Trust Fund (non-stakeholder) and Individual Savings Accounts (opened before 01/07/14) between 03/09/2015 and 21/03/2016.

No MVR is currently being applied on any policies.

Please Note: You must confirm you have read the key facts, before downloading this document.

Key Facts about our services and costs

1. The Financial Conduct Authority (FCA)

The FCA is the independent watchdog that regulates financial services. This document is designed by the FCA to be given to consumers buying certain financial products. You need to read this important document. It explains the service you are being offered and how you will pay for it.

2. Whose products do we offer?

We offer products from the whole market

We only offer products from a limited number of companies

We only offer our own products

3. Which service will we provide you with?

We will advise and make a recommendation for you after we have assessed your needs.

You will not receive advice or a recommendation from us. We may ask some questions to narrow down the selection of products that we will provide details on. You will then need to make your own choice about how to proceed.

We will provide basic advice on a limited range of stakeholder products and in order to do this we will ask some questions about your income, savings and other circumstances but we will not:

  • conduct a full assessment of your needs;
  • offer advice on whether a non-stakeholder product may be more suitable.

We can only offer products from Kingston Unity Friendly Society. These products will enable you to:

  • protect yourself and your loved ones in the event of death
  • save and invest with the added benefit of protecting yourself and your loved ones in the event of death
  • provide benefit cover in the event of sickness

4. What will you have to pay us for our services?

Normally, if you buy a financial product direct from us, there will be no payments such as commission or fees payable. If there are any commission or fees payable, we will tell you how we get paid and the amount before we carry out any business for you.

5. Who regulates us?

Kingston Unity Friendly Society, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and .the Prudential Regulation Authority. Kingston Unity Friendly Society’s FCA Registered Number is 110056.

Kingston Unity Friendly Society permitted business is advising and arranging life assurance and pensions business.

You can check this on the FCA’s Register by visiting the FCA’s website or by contacting the FCA on 0845 606 1234.

6. What to do if you have a complaint

If you wish to register a complaint, please contact us:
…in writing Write to Kingston Unity Friendly Society, Complaints Department, 9 Navigation Court, Calder Park, Wakefield, WF2 7BJ. …by phoneTelephone (01924) 240164

If you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service.

7. Are we covered by the Financial Services Compensation Scheme (FSCS)?

We are covered by the FSCS. You may be entitled to compensation from the scheme if we cannot meet our obligations. This depends on the type of business and the circumstances of the claim.

Most types of insurance business are covered for 90% of the claim with no upper limit.