Rising value of Endowment. Is this normal?

Unclefoobar

Eleven months ago (April 2012) I obtained a surrender valuation for my L&G with profits endowment, figure given was £18,255. Requested another valuation this month (March) and figure given was £20,091 meaning an increase of £1836 in eleven months.
I pay £65.77 a month, so 11 x 65.77 = £723.47, therefore the endowment surrender valuation has increased by £1113 plus my contributions.

Can anyone shed any light on why such a large increase or this just normal and to be expected. Can I expect the value to increase at such a rate?

The endowment is showing a shortfall, 6% should pay out approx £35,000 when it should have paid out approx £46500.

We no longer need it to pay off the mortgage as we're repayment but thinking of surrendering or selling to pay for home improvements.

kingstreet

I suspect the fund is partly invested in equities which have done rather well in the last year, until the Cyprus issues, that is.

My stakeholder pension plan is invested in the UK Equity fund and it's up about 16% in the last year.

GhIFA

L&G make their Bonus Declarations on their With profit fund in February of each if I remember correctly, so I would suspect it is probably down to the addition of some annual bonus.

kingstreet

Doh!

I've just stupidly realised, I've given the answer for a unit-linked plan!

As GH has said, there's been the addition of another annual bonus and the terminal bonus included in the surrender value may be higher as a result of the growth in equity values I mentioned.