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Wesleyan pays out a record £30m Mutual Bonus to investors

Wesleyan pays out a record £30m Mutual Bonus to investors

Wesleyan, the financial services mutual, is distributing a £30m* dividend - mutual bonus - to customers invested in its with profits fund.

Despite the downturn in the economy Wesleyan is paying its highest ever mutual bonus with each investor receiving a 1% uplift on the value of their investment fund on 31 August.  Payments come into effect from 1 September - a welcome boost for many savers this year.

The dividend is one way in which Wesleyan shares the benefits of being a successful mutual with its members as it has no shareholders to consider. As testament to its financial strength the Society has paid out over £67m to members over the past three years in the form of mutual dividends. It also offers a mutual benefits initiative and in 2019, £1.4m was spent on providing discounts to members for selected insurance policies including home and motor taken out through Wesleyan Financial Services.

Wesleyan Group CEO Mario Mazzocchi said: "We're delighted to share this dividend with our members especially at a time of such economic uncertainty. As one of the UK's financially strongest mutuals, we want to fulfil the commitment we made earlier this year to distribute the mutual bonus.

"There is still a great deal of uncertainty around Covid-19 and the economic outlook. However, we have performed better than we expected at the outbreak of the pandemic and feel it right to reward our customers."

Wesleyan's With Profits ISA, that invests in stocks and shares, is now available directly through its website with no upfront charge. 80% of Wesleyan's customers said they were reviewing their financial situation as a result of Covid and evidence suggests that more people will be saving as we enter into a period of financial uncertainty.

Mario Mazzocchi added: "Many people are nervous about investing in stocks and shares but with cash savings accounts delivering record low interest rates and inflation on the increase, bank and building society accounts are delivering a poor return.
"Anyone who's saving for the long-term, wants their money to work harder and is willing to take a bit more risk, could consider investing in a stocks and shares ISA."

Someone who invested £10,000 in the Wesleyan With Profits ISA in 2015 would have seen their money grow to £12,301 over 5 years - an annualised return of 4.2%**.

 Term  WP Value  Final Bonus Cash in value
 1  £10,089.35  £ -  £10,089.35
 2  £10,217.87  £ -  £10,217.87
 3  £10,388.17  £444.88  £10,833.05
 4  £10,579.50  £1,889.05  £12,468.55
 5  £10,810.67  £1,490.39  £12,301.06
 10  £12,153.99  £6,797.84  £18,951.83

This comes on top of Wesleyan's recent announcement that its With Profits Fund delivered a gross annual increase of 7.3% to investors in 2019***.

The mutual bonus is being paid in a year where Wesleyan's executive committee members have agreed to forego any performance-related bonuses and non-executive directors declined their scheduled pay increase. In addition, Mario Mazzocchi and the Board of Directors have donated 10% of their salary for six months to charity, while Chair Nathan Moss donated 20% of his salary. 

Please note that past performance is not a reliable guide to future performance and the value of your investment, and any income can go down as well as up, so you could get back less than you invested.

Exact final amount is dependent on fund values as at 31 August
** An investment of £10,000 made on 1 July 2015 would have a potential cash-in value of £12,301 at July 2020 (Includes final bonus payment which is not guaranteed).
***This represents the change in cash-in value based on growth in investment from 1 January to 31 December 2019 after smoothing.

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'WESLEYAN’ is a trading name of the Wesleyan Group of companies.

Wesleyan Assurance Society and Wesleyan Bank Ltd are authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Wesleyan Financial Services Ltd, Wesleyan Unit Trust Managers Ltd, Practice Plan Ltd and DPAS Ltd are authorised and regulated by the Financial Conduct Authority.  Advice about investments, insurance and mortgages is provided by Wesleyan Financial Services Ltd.

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