Questions about your bonus or annual statement? We can help.
We understand that our members are keen to find out how their plans are performing, including details of any bonuses that they may be due to receive. That means that many of you get in touch with us around the time that annual statements are released with questions about your bonuses and statements.
We thought it might be helpful to pull together some of the most frequent questions you ask and put them all in one place for you. That way, if you have a question regarding your bonus or annual statement, you can get an answer instantly.
Of course, if you can’t find the information you are looking for below, please do feel free to contact our Member Services team, who will be more than happy to help. You can reach them through our online contact form: shepherdsfriendly.co.uk/help-and-support/. Also, if there’s anything you think we’ve missed, please let us know and we can add this to the FAQs (Frequently Asked Questions) below.
Bonus and Annual Statement FAQs:
How can I see the current value of my plan?
If you have either a Stocks & Shares ISA or Junior ISA (Individual Savings Account) with us, you can view the current value of your plan online. All you need to do is log in to your account and you’ll find an overview of your plan. You can easily register an online account by visiting our website: https://www.shepherdsfriendly.co.uk/your-account/register. If you still need some help with this, our Member Services team will be happy to guide you through this process.
For all other investment plans, you will receive your annual statement through the post, and this will include the current value of your plan, any payments that you have made, and the bonus that you received in 2023.
How has my plan performed over the past ten years?
Our savings products are designed for the medium to long-term. Our careful investment strategy involves holding back some of the profits during years of good market performance so we can still pay bonuses to members during more volatile periods. This allows our members to have a smoother investment journey overall.
Over the past ten years, the fund that we invest your money in has shown encouraging growth; however, it did experience losses in:
- 2015 when the Chinese Markets crashed;
- 2016 with the Brexit referendum;
- 2018 during the Brexit withdrawal negotiations;
- 2020 during the coronavirus pandemic;
- 2022 following the outset of war in Ukraine and rising inflation
2023 also saw the UK and US Central Banks raise their interest rates multiple times to curb the effects of high inflation. Also in 2023, markets reacted to global events such as the tension in the Middle East disrupting supplies and emerging economies, like China, recovering slower than expected post-pandemic.
Thanks to our investment strategy, despite the fluctuations in the market, over the ten-year period, the fund was able to continuously grow whilst the FTSE All-Share Index (made up of 600 companies on the London Stock Exchange) experienced volatility.
As a result, we have paid a total bonus of 30.5% to our Stocks & Shares ISA and Junior ISA members since 2013.
For those members with another investment plan with us (i.e., Bonus Plan or Young Saver Plan), please review your annual statement for more information about your annual bonus.
How can I see my bonus?
If you have a Stocks & Shares ISA or Junior ISA and are registered to view your account online, you can log in to see your most recent bonus. If you do not have access to view your account online or have another Shepherds Friendly investment plan, the details of your bonus will be included in your annual statement.
If you haven’t done so already, you can register for an online account by clicking here and following the instructions.
When will my bonus be applied?
Annual bonuses cover the calendar year, so will apply to investments up to 31st December 2023. We know that your annual bonus is important, and our members eagerly anticipate the announcement of this each year. We aim to make this announcement as soon as possible. This process is undertaken by our actuaries, who calculate annual bonuses based on the performance of the With-Profits fund, before being approved by our Board of Directors.
For our Stocks & Shares ISA and Junior ISA products, bonuses for 2023 have already been announced at 3%. Additionally, annual statements for all our plans will be distributed in March, and will explain the current value of your plan, including any annual bonuses.
Please be assured that the time it takes to carry out this process does not impact on the overall value of your investment in any way. Any bonuses related to future performance after 31st December 2023 will be considered at the time of the plan’s maturity, or the next annual bonus, whichever is soonest.
When will I get my statement?
Annual statements for all plans will be sent out by post. If you have a Stocks & Shares ISA or Junior ISA, you can see the current value of your plan by logging in to your account to view your plan online. You will need to register for online account access if you haven’t done so already, by clicking here and following the instructions.
How does the bonus work compared to cash / other stocks and Shares ISAs?
Our With-Profits fund is primarily invested in the Multi Assets Strategies Fund (MAST), which is managed by Royal London Asset Management (RLAM). This fund aims to achieve steady growth over the long term, at a rate that outperforms cash savings accounts, but carries less risk and reward potential than some other investment funds, giving our members a smoother investment journey, if they invest for the long-term.
Our fund therefore differs from other accounts in the following ways:
Cash ISAs
Cash ISAs usually receive tax-exempt interest payments, which may be fixed or variable, depending on the individual account. The money is not invested in asset classes such as stocks and shares, property or bonds, meaning that there is no risk of receiving back less than you paid in. However, the growth potential in these accounts is typically lower as a result of this.
Unit-Linked Stocks & Shares ISAs
Unit-linked investments are directly invested in assets in a similar way to our With-Profits fund. However, the key difference between the two is that unit-linked investments will fluctuate on a daily basis, meaning investors may experience higher levels of volatility. Our With-Profits fund uses an investment strategy known as ‘smoothing’, which aims to reduce the peaks and troughs of investing by calculating the performance of the investments over a calendar year, before announcing the value of any bonuses. In some years, we may hold back profits from periods of strong performance in order to pay a bonus in years of poor investment performance, meaning that members should have a more stable investment journey.
However, it is important to remember that, when you withdraw any money from your plan, we will calculate the value of the investments that you hold within the With-Profits fund to ensure that you leave with your fair share. This may mean that:
- If you have been invested through periods of strong investment performance, you might get a final bonus;
- If you have been invested through periods of poor investment performance, and you leave the fund, you may get back less than the current value of your plan. This is called a Market Value Reduction (MVR).
However, this does not apply to plans that are maturing. When your plan matures, we guarantee that you will get back all of your payments into the plan plus any bonuses that have been paid in the past.
How do we invest your money?
Shepherds’ Friendly investments are primarily placed into one of two funds managed by Royal London Asset Management (RLAM). Our responsible ISA and JISA plans invest in the ‘Multi Assets Strategies Fund’ (MAST) and the Sustainable ISA and Sustainable JISA invest in the ‘Sustainable Diversified Trust Fund’ (SDTF). Both funds invest in a diverse mixture of asset classes including stocks and shares, gilts, bonds and cash.
The overall aim of the funds is to provide a better return than a cash account, but with a medium to low level of investment risk. However, it is important to remember that all investments do carry risk, and you may get back less than you pay in.
Why do different plans receive different bonus rates?
All of our current With-Profits plans are invested in the fund, and we work hard to be able to pay all members a bonus. Each plan has different features and charges, which have to be considered so that we can ensure all members receive their fair share of the fund growth. For example, some plans have Life Insurance built into them, so that your loved ones receive a lump sum in the unfortunate event that you pass away. Bonuses are paid after any charges, which means that some plans may receive different bonuses, depending on the features of each plan.
When do I get my 5 Year Fixed Rate Bond Statement?
We send out statements for our 5 Year Fixed Rate Bond once a year. This year’s statement covers the period from 1st January to 31st December 2023. Your interest is calculated daily, and your statement gives the value of your plan up until 31st December 2023.