Royal London Derisory Endowment Performance

Bigalfonso

Hi,
Has anyone else had a Royal London Endowment Policy mature recently?
If so what did you think of the actual investment performance vs their marketing blurb which suggets thst they are top bananas.
Also a little concerning is their constant references to their healthy underlying asset base.
Poor performance, healthy asset base?
Sounds like the directors are feathering their nest ahead of a future privatisation floatation?

What do you think?

Bigal

EdInvestor

You need to look at their With profits fund asset mix - what percentage in equities and property vs bonds and cash.That will give you an idea of furture performance. The free asset ratio at RL isn't particularly strong.

dunstonh

Sounds like the directors are feathering their nest ahead of a future privatisation floatation?

Or it could be to do with the well publicised requirements of capital adequacy and covering liabilies which were increased for mutuals plus the revised accountancy standards increasing that further resulting in insurance companies having to take less risk with their with profits funds than they did in the past and that decision happening after the stockmarket crash so many (most) of them were out of the market for a lot of the recovery.

Bigalfonso

Hi,

Sorry I've been out of it for a while!

Thanks for your responses.

All I know is that I took out a 15 year Industrial Branch Policy, (the ones that used to be collected by RL collectors on the doorstep but which are now collected by DD), and it had a guaranteed sum assured of £7240.
After paying in at the rate of £43.33 per month for 15 years (£7800 in total) all I got back was £9900.
Not very exciting is it?
Perhaps an IFA can work out the actual return vs other investment vehicles?
Doesn't sound like neck snapping performance from a company that blows it's own trumpet about being at or near the top of the performance league table?
I've also got quite a lot of Pension funds tied up with RL and these are not performing either.
They'll be transferring out soon, once bitten twice shy!
I suggest Clerical Medical from my experience.
Cheers,
Alan M

derrekmay

what's the Royal London Endowment Policy ?

Bigalfonso

Hi,

The policy was a 15 year Industrial Branch with profits endowment policy taken out in January 1992 on the life of a 34 year old female.
It matured in January 2007, but it turned out that it had not matured at around £20k as the RL salesman had promised it would do on several occasions but only at £9800.
Hey but that's ok then!! It's only money after all!!

Royal London did not bat an eyelid even when I complained about the promises vs the performance.

No more investment with them I think! :mad:

Old_Slaphead

Bigalfonso wrote: »

Hi,

Sorry I've been out of it for a while!

Thanks for your responses.

All I know is that I took out a 15 year Industrial Branch Policy, (the ones that used to be collected by RL collectors on the doorstep but which are now collected by DD), and it had a guaranteed sum assured of £7240.
After paying in at the rate of £43.33 per month for 15 years (£7800 in total) all I got back was £9900.
Not very exciting is it?
Perhaps an IFA can work out the actual return vs other investment vehicles?
Doesn't sound like neck snapping performance from a company that blows it's own trumpet about being at or near the top of the performance league table?
I've also got quite a lot of Pension funds tied up with RL and these are not performing either.
They'll be transferring out soon, once bitten twice shy!
I suggest Clerical Medical from my experience.
Cheers,
Alan M

CM also haven't performed particularly well either in a similar arena. My best returns WP-wise have been with Wesleyan.

noahveil

RL's performance sounds positively sparkling compared to that of Liverpool Victoria, or L=V as I believe they now call themselves.

Invested £500 in their WP ISA seven years ago (just to bag 'em).

Performance so lousy, not even worth keeping it on for the bag, so cashed in last month.

Got back the grand total of £533 ie less than 1% pa gain :mad:

Bigalfonso

I believe, rightly or wrongly, that Royal London are retaining investors money to bolster their underlying assets, which in turn is reducing real returns on their products whilst claiming that their performance is ticketty boo.
As a mutual society they need to become les secretive and less prone to speaking to their investors in actuarial gobble de speak.
They also need to match their marketing spiel with the actual performance regards pay outs to investors.
What happens to their 'asset base' if they decide to float on the stock market. You can bet your bottom euro any surplus will not find it's way into their investors pockets.
It just sucks I'm sorry.
Al