With Profits Bond maturing, something strange though?

F

Fat Tony

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My bond is with Canada Life, was for 10,000punts seven years ago and has now yielded a return of 10.96%, coming in at €14,088.44.

First, is this a good return? I'm disappointed but it was in a low risk bond with guarantees so maybe that's why?

Also, I have a letter from them from over two years ago telling me the current nominal value of my policy was €14,088.44 - exactly the same as the expected termination value, to the cent ? This seems suspicous to me?

My agent has since left CL and am waiting for a call back on these queries but would appreciate some other(neutral) points of view.
 
TheMasterG said:
My bond is with Canada Life, was for 10,000punts seven years ago and has now yielded a return of 10.96%, coming in at €14,088.44.
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How is that a return of 10.96%? :confused: Seems to me that it's a return of c. 41% and according to this calculator it's equivalent to an annual rate of c. 5%.
Also, I have a letter from them from over two years ago telling me the current nominal value of my policy was €14,088.44 - exactly the same as the expected termination value, to the cent ? This seems suspicous to me?
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With profits are funny like that. The maturity returns may well have been set a while back and it doesn't necessarily indicate anything untoward.
 
Ah - so the total return is 10.96% and the CAR is c. 1.5%. Not great even for a low risk investment. Even An Post were probably paying more than that. Your money has lost real value due to inflation.
 
Yep, very disappointed. You try to do the right thing and it bites you in the a$$.

I don't trust this final figure, surely the final figure wasn't set almost 2.5 years ago? They're sending me out some performance chart type thing or something but I doubt that will clarify anything. Feel like nobody has done anything with my investment since 2004 - probably incorrect but that's what it feels like :(
 
Canada Life's fund management leaves a lot to be desired. I bought into their Focus 15 product 7 years ago and it has been underwater for almost the entire period. It is still worth considerably less then the amount I invested and thats not taking inflation into account.
 
Good news, talked to someone and figures were wrong, should be about 16800 so bit better, thanks :)
 
TheMasterG,

punter hit the nail on the head in explaining what has happened in the last 7 years. His fund is wholly invested in equities. Your fund would probably have had 50% invested in equities. He is still in negative territory but you are showing a profit.

I am sure that if you compared the average return on a managed fund (net of all charges) over the same 7 year period, you would not be too far out with a return of 32% (approx).
 
Thanks for the replies, at least now I don't have a bad taste in my mouth from the whole deal. Bit happier cashing out now :)
 
F. Kruger said:
punter hit the nail on the head in explaining what has happened in the last 7 years. His fund is wholly invested in equities. Your fund would probably have had 50% invested in equities. He is still in negative territory but you are showing a profit.
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Punter came into some money in 2000 and invested it in 5 equity funds. Punter's point here is not the general state of the equity markets over the period 2000 to 2007. The point punter wishes to make, respectfully, is the hopeless fund management by Canada Life. For example, of the five funds which punter invested in, the closest comparison in terms of investment objectives is between Canada Life's Focus 15 and Eagle Star's 5*5. (Both concentrated pure equity funds, no attempt to diversify) Comparing the performance of these two funds over the period 1/1/2001 to 30/3/2007, Canada Life's Focus 15 achieved -19%, while Eagle Star's 5*5 achieved +75%. And while the latter is nothing to brag about in terms of performance after inflation when the risk associated with equities is factored in, it is a hell of a lot better than the former.

I stand by my original contention, Canada Life's fund management is pants.
 
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