Product Performance
How will the ISA grow?
The ISA does not pay interest on the amount you have paid in.
Instead, the Order Insurance With Profits Fund provides your ISA
with the potential for growth by way of bonuses.
What are bonuses?
Any money paid into our Stocks & Shares ISA is invested in
our Order Insurance With Profits Fund along with the other Order
Insurance Fund policyholders (excluding those with ethical
investments). Dependent on the performance of this fund,
Foresters Friendly aim to add annual bonuses to increase the value
of your ISA.
When the time comes and you cash-in your ISA in full, we also
aim to add a final bonus to the value of the plan. This is done to
ensure that the plan's payout reflects your fair share of the With
Profits Fund.
In adverse market conditions, a Market Value Reduction (MVR)
could be applied when you cash-in your ISA meaning that the amount
you receive will be reduced and in some investment conditions you
may not get back the full amount originally invested. We will
only do this to ensure fairness between policyholders leaving the
fund at different times. We will never apply an MVR if you
die.
The addition of any bonuses is not guaranteed.
How do bonuses work?
We aim to pay bonuses in two ways:
1. Annually:
We aim to pay annual bonuses on the amount you have paid into the
ISA. Any annual bonuses declared on the plan will then
increase the plan's value for future year's bonus
declarations. Bonuses are calculated daily which allows for
the timing of any investments and withdrawals together with any
previously allocated bonuses.
2. Final bonus on maturity of the
plan:
When you cash-in your ISA in full, we also aim to add a final
bonus to the total value of your plan.
Past Performance
The following annual bonus rates have been declared for the
ISA:
| Year |
Annual Bonus Rates |
| 2011 |
2% |
| 2010 |
3% |
| 2009 |
3% |
| 2008 |
3% |
| 2007 |
5.25% |
| 2006 |
5.25% |
| 2005 |
5.25% |
| 2004 |
5% |
The addition of any bonus is not guaranteed.
We may vary the design of a product to best meet the needs of
our policyholders which may affect the timing and size of future
bonuses. Therefore the above table is provided for information
purposes only and should not be considered an indication of likely
future performance.
Risk Category
The ISA is classified as a 'Medium Risk'. This is suitable for
medium risk investors, which can be classified as follows:
- You are willing to take a moderate amount of
risk.
- You understand and accept that inflation
could erode the value of your money over time.
- You understand that you could lose money on
a 'Medium Risk' investment.
- You understand that Foresters Friendly
Society regard a 'Medium Risk' product to be one which typically
cannot predict the amount of money you may receive back.
For more details about the Stocks & Shares ISA, please read
the ISA Key Features
Document.
Stocks & Shares ISA - FAQs >>