Standard Life Endowment policy holders - heads up.

bigmondy

Like me - they will have given you a Mortgage Endowment Promise (MEP).

If you ask how much it will be - they will give you a range of what the MEP is likely to be worth when the policy matures.

I was told on the phone late last year by SL that:

the more people that "cash in" their endowment policies early - the more that is
left in the fund and the greater the MEP!"

So the heads up is that (if there is a surge in early cashing in of policies) there is a possibility it might go up.

I am not an expert and was getting good advice from dunstonh in a previous thread on this matter - nobody on that thread denied that this was not possible. So I thought it might be worth keeping an eye on it's value.

PS: I remain a little curious though: I have yet to be advised who is keeping tabs on 'the MEP fund' and SL's delivery of their promise?

1. SL itself.
2. Auditers?
3. Us - the policy holders?

:EasterBun

bigmondy

Received this from them re the div' for this year.

Dear shareholder

We grew our business profitably last year. Our efficient management of assets and capital, so important in these uncertain times, continues to give us a strong foundation from which to operate.

We're pleased to recommend a final dividend of 9.20p per share. This will make a total of 13.80p for 2011, up 6.2% on 2010, and will be paid on 31 May 2012 if our shareholders vote to approve it.

Does this kind of return make them "worth hanging on to"?

PS - last time I asked that I started a war between posters - hope asking again doesnt kick it off again.

bigmondy

Well - I thought I would bump this thread just to highlight how things can change:

SL SHARES:

Year low: 181

Year high: 306

OK I may not have a huge volume of them - but I am pleased I hung on to them now.

Bazinga!


EDIT: But the dividend is pretty poor - is it not? The interim dividend is 4.9p per share – up 6.5% on November 2011. That is worse than the poorer performing return at the start of the year.

bigmondy

Sorry for bumping again - but ........... Isnt this strange - I approached an IFA (a friend as well) and asked him in January 2011 what I should do with my SL shares - he said SELL SELL SELL.

I held and they have tripled.

Today they are even higher than when I posted above in November at 346 :eek:.

Re the OP though -

I phoned this morning to get a valuation on the MEP and it was less than that quoted this time last year.

My worry is that I have yet to be advised who is keeping tabs on 'the MEP fund' and SL's delivery of their promise?

1. SL itself.
2. Auditers?
3. Us - the policy holders?

Do none of the FA's on this forum know the answer to this?

kingstreet

Your standard life shares and your endowment policy's performance are two different issues. None of the advisers on here will suggest you do anything with shares.

The performance of the endowment will depend on the performance of the underlying fund's assets. For example, the with-profits fund could be invested in property, gilts, stocks and shares, etc. all of which fluctuate upwards and downwards.

A with-profit fund is run/managed by an Actuary and monitored (IIRC) by the FSA. I would expect the MEP is not a separate fund, but a tranche of unallocated assets of the with-profit funds, based on how long the policy has been in force.

It will need one of the IFAs to confirm this. I haven't dealt with with-profits issues in over ten years.

bigmondy

I realise I dragged my own OP off-topic when I discussed the shares - it was more a matter of interest than relevance to the thread I suppose.

But your description of what the MEP is has helped me understand exactly how it is made up- thats appreciated. I am just curious as to who set the figure for the MEP and who monitors or regulates it.

bigmondy

bigmondy wrote: »

I am just curious as to who set the figure for the MEP and who monitors or regulates it.

Is anyone able to answer the above?

dunstonh

bigmondy wrote: »

Is anyone able to answer the above?

It is a defined calculation. Standard Life are regulated by the FCA.