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Written by Wesleyan

Wesleyan pays out a record £30m mutual bonus to investors

investments
3 min read
Mature female looking happy

We’re distributing a £30m dividend to customers invested in our With Profits Fund.

Despite the downturn of the economy, we’re paying our highest ever mutual bonus this year, with each investor receiving a 1% increase on the value of their investment fund on 31st August 2020. We’ll be making payments from 1st September 2020 - a welcome boost for many savers this year.

This year, our executive committee members agreed to pass on 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. 

As we have no shareholders to consider, the dividend is one way we share the benefits of being a successful mutual with our members. As testament to our financial strength, we’ve paid out more than £67m to our members over the past three years in the form of mutual dividends. 

We also offer a mutual benefits initiative. In 2019, we spent £1.4m on member discounts for some of our insurance policies, including home and motor insurance.

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."

Investing with Wesleyan

80% of our 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."

Wesleyan's With Profits ISA, which invests in stocks and shares, is now available directly through our website with no upfront charge.

The table below shows what the potential cash-in value of a With Profits ISA would have been at 30th June 2020, if you had deposited £10,000 in the fund on 1st July one, two, three, four, five or ten years ago with no initial fee.

These figures are based on the historical performance of the fund.

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.

Year
With Profits value
Final bonus
Cash in value
1
£10,089.35
NA
£10,089.35
2
£10,217.87
NA
£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

Source: Wesleyan internal information. Figures correct as at June 2020. Figures shown are after the deduction of 1.2% annual management charges, assuming no ongoing advice charge, and include the effects of smoothing.